Fostering Income

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Hyperdrive

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Post by Hyperdrive » Sun Apr 22, 2012 6:14 pm
For a few years now Mrs H has been contemplating a change in career direction, from heading a secondary school department, to fostering.
We have looked at information packs and discussed the pros and cons at length over a long period including pre-IVA days.
Our understanding is that there are basically two components to the fostering "income" ; a "fee" payment for doing the job plus an "allowance" to cover the child`s costs eg food, clothes, travel, pocket money.
Anyone know whether the "allowance" element lies outside the i&e calculations?[?]
 
 

kallis3

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Post by kallis3 » Sun Apr 22, 2012 6:21 pm
Hi Hyperdrive.

I have no idea how this income would be viewed. Obviously your expenditure would go up due to child costs.

You need to speak to your IP about this and take advice from them.
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ginger3232

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Post by ginger3232 » Sun Apr 22, 2012 6:23 pm
from previous experience the allowance will vary from each child (ie age,and care needs) also the total income is taxable after a set amount (approx £12K per year.
You will find the the money is barely enough to cover all the childs needs - which will include clothes/school uniforms/outings/school lunches etc etc

So it may be worth speaking to your IP direct - on how they would like this to be addressed
 
 

ginger3232

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Post by ginger3232 » Sun Apr 22, 2012 6:30 pm
http://www.hmrc.gov.uk/individuals/foster-carers.htm

They have appeared to have reduce the allowance before tax to 10k per year - this income is per household
Last edited by ginger3232 on Sun Apr 22, 2012 6:42 pm, edited 1 time in total.
 
 

MelanieGiles

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Post by MelanieGiles » Sun Apr 22, 2012 6:54 pm
I am acting for several foster carers, and can confirm that the allowance element of your payments will ne completely excluded from the arrangement. This is because you have to keep receipts to demonstrate to the local authority that the money is actually spent on the children.
Regards, Melanie Giles, Insolvency Practitioner
 
 

ginger3232

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Post by ginger3232 » Sun Apr 22, 2012 7:00 pm
Oh forgot to add Hyperdrive - good luck to you both !! - it can be a long slow process to approval and can be challanging at times.
 
 

kallis3

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Post by kallis3 » Sun Apr 22, 2012 7:03 pm
Have to say hyperdrive that you have more patience than me!! I certainly couldn't do it.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
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Shining

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Post by Shining » Sun Apr 22, 2012 7:20 pm
The care system needs good foster carers and I take my hat off to anyone who can do this. It takes a special person to be able to do it, I wish you and your wife all the best if you persue this.
IVA final payment left the bank on the 26th January 2013...looking forward to a debt free future.
 
 

luluj

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Post by luluj » Sun Apr 22, 2012 7:34 pm
I think it is very admirable to become foster parents and wish you both the best of luck with it....some of the disadvantaged children out there are crying out for loving caring people to simply give them a home and help them to enjoy life. Good luck x
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kallis3

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Post by kallis3 » Sun Apr 22, 2012 7:47 pm
I do admire people who do it but afraid I wouldn't have the patience!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
 
 

doublemummy

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Post by doublemummy » Sun Apr 22, 2012 8:33 pm
I would love to foster - I reallty hope it happens for you both.
 
 

Adam Davies

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Post by Adam Davies » Sun Apr 22, 2012 8:33 pm
Hi

As others have confirmed the reward element is classed as income and the allowance element, for the foster child[ren], is not.

Regards
Andam Davies
 
 

Hyperdrive

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Post by Hyperdrive » Sun Apr 22, 2012 9:23 pm
Thanks for all the advice and support guys, still early days but will let you know how we get on.
 
 

footiemad

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Post by footiemad » Mon Apr 23, 2012 8:59 am
Wonderful thing to do and I wish you the best of luck if you decide to go ahead x
 
 

kallis3

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Post by kallis3 » Mon Apr 23, 2012 9:15 am
Good luck from me as well - hope it works out for you.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley.
http://kallis3.blogs.iva.co.uk
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