NI on Fostercare

[Deebiz]

Hi, please could someone help us understand what we should do. I currently work part-time for an employer and pay NI on my salary. My husband works full-time for his employer and pays NI on his salary.
I went part-time in order to Foster children and currently have 2 children long-term. I am the main carer.
We were told that we both had to sign up as self-employed as we also own and lease a flat in joint names.
We have both received NI contribution request but feel it should be only for myself for the fostering if at all??..... we earn nil profit from leasing the flat at present.
Please could you help us to understand what we should be paying in terms of NI contributions. Thanks D.

[pawncob]

HMRCs view:
http://www.hmrc.gov.uk/helpsheets/hs236.pdf

[Deebiz]

Thanks Pawncob but we had read this document and it has not answered our question re. do we both have to pay NI contributions or just myself as the main carer? The receipt for fostercare is addressed and sent to myself, should my husband be expected to pay a further NI contribution also. D.

[pawncob]

Is this a partnership? It doesn't sound like one, but you may have different ideas. (All that changes is the form you need to complete)

Quote:
We are aware that a number of foster carers may not have registered for Class 2
NICs because they make little or no taxable profit. We will not impose a penalty
on foster carers who fail to register or to apply for the Small Earnings Exception
(see below) where foster care is the only source of self-employed income and
your taxable profit is nil.

If this applies to you then you have nothing to worry about. (But see rest of para. re benefits etc.)
The flat ownership is irrelevant to NIC position as letting is not liable to NIC.