Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether his Department has made an assessment of the potential (a) financial and (b) other implications of the Making Tax Digital reforms on foster carers; and if he will meet affected groups to discuss this issue.

The Making Tax Digital (MTD) reforms aim to preserve the existing Income Tax easements for carers, whilst ensuring the wider benefits of MTD are realised.

Whether a carer is within the scope of MTD depends on if their income from caring exceeds their allowance for Qualifying Care Relief, as well as the MTD for Income Tax threshold.

All existing Income Tax easements for foster carers, such as where carers completing a tax return do not have to report expenses from caring, will apply to MTD as well.

The Government has committed to ensuring there are free software products for the smallest businesses with straightforward affairs.

HMRC will continue to engage with foster carers and their representative bodies.