27 September 2011
Tax credits assisted claims service for foster carers
A new ‘assisted claims’ service for foster carers who wish to claim tax credits was introduced on 31 August 2011.
When a caller identifies themselves as a foster carer on contacting the tax credits helpline to make a claim, they should be offered a call back at a convenient time from a specially trained adviser. The adviser will be able to talk through their circumstances and give advice on how to complete their claim form.
It is hoped that this process should help avoid problems which have been highlighted previously, such as whether or not child tax credit can be claimed for children in foster care, and what hours and income should be declared (including how to declare employment status). However, there have been occasions when HMRC have incorrectly denied WTC to carers. We recommend that Advisers insist that a claim form is sent out even if the tax credit helpline state that there is no entitlement. This ensures that an appeal can be lodged if the claim is turned down.
HMRC are considering whether to extend this service to other types of care (kinship care, for example) but for the time being the ‘assisted claims service’ is only available to foster carers.
We have written a detailed guide about foster carers which provides information about tax credits for foster carers and shared lives carers (including adult placement carers).