Income from Swiis:
Janet has been caring for Lucy (aged 6) and her sister Mathilda (aged 15) for the full tax year which is the same as 52 full weeks (April to April). Janet received £52,312* fostering pay and allowance from Swiis as an income (known as the fostering weekly fee).
Tax Due to HMRC:
Janet will be allowed £61,040 in tax relief for the full tax year (April to April) from HMRC.
This is made up of the £18,140 Qualifying Care Relief plus the £42,900 additional relief linked to the children in placement (£375 per week for a child under 11 (Lucy) x 52 weeks = £19,500 plus £450 per week for a child over 11 (Mathilda) x 52 weeks = £23,400 = £61,040).
SUM = £18,140 + £19,500 + £23,400 = £61,040 Total Tax Relief for the Year
As Janet’s income from Swiis (£52,312) is within the tax relief total for the year (£61,040), Janet will NOT pay any tax on the pay received from Swiis.