www.iva.co.uk

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?[?]

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.

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

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

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.

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.

Have to say hyperdrive that you have more patience than me!! I certainly couldn't do it.

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.

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

I do admire people who do it but afraid I wouldn't have the patience!

I would love to foster - I reallty hope it happens for you both.

Hi

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

Regards

Thanks for all the advice and support guys, still early days but will let you know how we get on.

Wonderful thing to do and I wish you the best of luck if you decide to go ahead x

Good luck from me as well - hope it works out for you.