Fostering allowances are usually not taxable because foster carers benefit from the UK’s Qualifying Care Relief scheme. This allows you to earn up to a set annual amount from fostering without paying tax, and for many carers it means the entire allowance is tax-free. The tax-free limit depends on how many children you care for and how long they stay with you. At Progress, we provide workshops on tax and income to help you understand how this works, and the Fostering Network regularly offers workshops where you can access further advice and guidance to be confident about your own circumstances.