Do I have to pay tax on the fostering allowance?

Whether or not you need to pay tax will depend on your income from fostering after all of the fostering costs have been taken into account. The government has provided a formula for you to easily calculate your tax liability if you wish to use it  or you can seek your own accountancy advice.
The government has put generous tax allowances in place to support foster carers, however you are responsible for calculating and paying your own tax liability.

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