Mr. HinchcliffeTo ask the Chancellor of the Exchequer what is his policy in respect of income tax contributions by adult placement carers. [21041]
§ Sir George YoungIncome received by adult placement carers is subject to the normal taxation rules, which are generally those applicable to the self-employed. Carers are liable to income tax on any profits from caring to the extent that income received exceeds allowable expenditure incurred, and any general income tax allowances available to set against the net income. Relief may also be available under the rent-a-room scheme. Within these rules, it is the Inland Revenue's policy to treat carers sympathetically and, as with other very small businesses, to establish any profits with the minimum of fuss.