08-02-2011, 07:44 PM
I have recently started completing a tax return for a person who looks after 3 adults with learning disabilities for which she uses the fixed expenses method to calculate her taxable profit.
I have no issue with how to calculate the tax, I just need clarification on what is classed as her taxable income received for providing the care.
She receives a payment from the local council for each of the adults in her care. In addition she receives direct from each of the adults £65 per week which is their contribution towards the care.
My question is, are both these amounts that are received classed as her income or is it just the money received from the local authority?
Within HMRC helpsheet 236 it explains that the total income should be 'all payments you receive from your local authority, HSS Trust, health service body, voluntary fostering organisation or under a qulifying care scheme, including those payments you have previously treated as being non taxable'
Any advice would be appreciated.
I have no issue with how to calculate the tax, I just need clarification on what is classed as her taxable income received for providing the care.
She receives a payment from the local council for each of the adults in her care. In addition she receives direct from each of the adults £65 per week which is their contribution towards the care.
My question is, are both these amounts that are received classed as her income or is it just the money received from the local authority?
Within HMRC helpsheet 236 it explains that the total income should be 'all payments you receive from your local authority, HSS Trust, health service body, voluntary fostering organisation or under a qulifying care scheme, including those payments you have previously treated as being non taxable'
Any advice would be appreciated.
