§ Dawn Primarolo
The Inland Revenue is working with the Department of Health and a number of organisations representing foster carers to design a simple method by which foster carers can choose to calculate the income tax due on the reward element of their payments using standard, agreed, costs. Alternatively, foster carers would be able to rely upon actual costs. The Inland Revenue plans to introduce the new arrangements as soon as practicable. In the interim, the Inland Revenue will maintain existing agreements for calculating the reward element of payments, in accordance with representations made by care organisations.