HC Deb 05 April 2001 vol 366 c239W
Dr. Cable

To ask the Chancellor of the Exchequer what response the Inland Revenue has made to the representations from foster carers' or organisations and the Department of Health regarding its proposals for taxing payments to foster carers. [157067]

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.

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