Fostering and tax

Fostering is classed as self-employment therefore carers need to register as self-employed with HM Revenue and Customs (HMRC) and complete a self-assessment tax return form at the end of every tax year.

All types of foster carers must register, including family and friends, emergency, long-term, short breaks, and Mockingbird carers.

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HMRC requires carers to register regardless of whether they make a profit from their fostering or not.

A tax year runs from 6 April in one year to the 5 April in the next.
The current tax year is 2024-25.
HMRC works retrospectively, so you will submit information to them (a tax return form) about the previous tax year (currently 2023-24).

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