Tax free childcare #1004

vahid-ahmadi · 2025-01-10T19:34:06Z

Overview

This PR implements the Tax-Free Childcare (TFC) scheme calculation in PolicyEngine UK. The scheme provides government contributions towards childcare costs for eligible families. (Documentation link)

Key Features

Annual contribution of up to £2,000 per standard child and £4,000 per disabled child
Income threshold of £100,000 per partner
Eligible unit: person
Needs to be combined with: Add extended childcare entitlement #1006 Add universal childcare entitlement #1009 Add targeted childcare entitlement #1014

Fixes #1002

MaxGhenis · 2025-01-11T02:15:51Z

@PavelMakarchuk could you please meet with @vahid-ahmadi on this? Probably easier than text review for getting the parameters and vectorization in for the first time.

PavelMakarchuk

Come initial comments but will meet to discuss in detail

...yengine_uk/variables/gov/hmrc/tax_free_childcare/conditions/childcare_age_child_condition.py

policyengine_uk/variables/gov/hmrc/tax_free_childcare/tax-free-childcare-benefits.py

policyengine_uk/variables/gov/hmrc/tax_free_childcare/conditions/childcare_work_condition.py

policyengine_uk/parameters/gov/hmrc/childcare_subsidies/tax_free_childcare/age_limits.yaml

...e_uk/parameters/gov/hmrc/childcare_subsidies/tax_free_childcare/contribution_parameters.yaml

...yengine_uk/variables/gov/hmrc/tax_free_childcare/conditions/childcare_age_child_condition.py

policyengine_uk/variables/gov/hmrc/tax_free_childcare/conditions/childcare_income_condition.py

...e_uk/parameters/gov/hmrc/childcare_subsidies/tax_free_childcare/income_thresholds/adult.yaml

policyengine_uk/variables/gov/hmrc/tax_free_childcare/tax_free_childcare_benefits.py

...uk/variables/gov/hmrc/tax_free_childcare/conditions/childcare_incompatibilities_condition.py

policyengine_uk/parameters/gov/hmrc/tax_free_childcare/incompatible_benefits.yaml

...ables/gov/hmrc/tax_free_childcare/conditions/tax_free_childcare_meets_income_requirements.py

policyengine_uk/parameters/gov/hmrc/tax_free_childcare/income_thresholds.yaml

policyengine_uk/parameters/gov/hmrc/tax_free_childcare/minimum_weekly_hours.yaml

policyengine_uk/parameters/gov/hmrc/tax_free_childcare/max_income_thresholds.yaml

...e_uk/variables/gov/hmrc/tax_free_childcare/conditions/tax_free_childcare_program_eligible.py

MaxGhenis

I'm also still not clear on how this works wrt spouse income eligibility, can you check against another source like entitled to?

Also run make format

policyengine_uk/parameters/gov/hmrc/tax_free_childcare/incompatible_benefits.yaml

policyengine_uk/parameters/gov/hmrc/tax_free_childcare/investment_income_types.yaml

MaxGhenis

Please also add the benefit to the list of benefits so it flows to net income

vahid-ahmadi · 2025-01-30T13:17:50Z

I'm also still not clear on how this works wrt spouse income eligibility, can you check against another source like entitled to?

Also run make format

Program rules:

"You must include your partner in your application if you are married/civil partnership and live together, or living together as though you are"
Both partners must independently meet income requirements when in a couple

The code addresses this through:

benunit.all(benunit.members("tax_free_childcare_meets_income_requirements", period)) in tax_free_childcare_eligible - ensures both partners must independently satisfy income conditions
tax_free_childcare_work_condition handles couple-specific work requirements with couple_both_working | couple_one_working_one_disabled

The code correctly implements the partner eligibility rules from the program description. I will explain the code in the documentation in detail.

MaxGhenis

Also run make format for the linecheck

Makes sense on the spousal earnings, it was ambiguous when we had earnings rather than hours (the guide said "you must earn at least x [based on age] and so must your spouse" which could have meant your spouse's earnings requirement also depended on your age) but is now more clear given the minimum wage standard

policyengine_uk/variables/household/income/income.py

policyengine_uk/parameters/gov/hmrc/tax_free_childcare/investment_income_types.yaml

policyengine_uk/parameters/gov/hmrc/tax_free_childcare/age/disability.yaml

policyengine_uk/parameters/gov/hmrc/tax_free_childcare/minimum_weekly_hours.yaml

...k/tests/policy/baseline/gov/hmrc/tax_free_childcare/tax_free_childcare_income_condition.yaml

…ine/policyengine-uk into tax-free-childcare-new

policyengine_uk/parameters/gov/hmrc/tax_free_childcare/investment_income_types.yaml

policyengine_uk/parameters/gov/hmrc/tax_free_childcare/income/countable_sources.yaml

…countable_sources.yaml Co-authored-by: Max Ghenis <[email protected]>

…ine/policyengine-uk into tax-free-childcare-new

Implement tax free childcare

adf96a0

vahid-ahmadi requested review from nikhilwoodruff and PavelMakarchuk January 10, 2025 20:08

PavelMakarchuk requested changes Jan 11, 2025

View reviewed changes

vahid-ahmadi added 10 commits January 13, 2025 13:27

Parameterize values

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Reformatting to pass the tests

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Reformatting with black

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Reformatting with black

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Format code with black

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Format code with black using 79-char line length

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Fix YAML structure

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Fix age condition YAML file

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Fix age condition YAML file

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Fix other YAML files

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PavelMakarchuk requested changes Jan 13, 2025

View reviewed changes

vahid-ahmadi added 3 commits January 13, 2025 18:02

Edit parameterization

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Fix formatting

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Edit age in YAML files

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PavelMakarchuk requested changes Jan 13, 2025

View reviewed changes

vahid-ahmadi added 10 commits January 13, 2025 18:59

Replace if with where

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Format with black

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Edit for test passing

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Edit format with black

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Edit format of benefit py file

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Edit child as not being boolean

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Change if to where

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Change disability definition

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Solve .values problem

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Edit .values error

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Apply Max's comments

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MaxGhenis requested changes Jan 29, 2025

View reviewed changes

vahid-ahmadi added 2 commits January 29, 2025 12:12

Apply Max's comments

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Edit parameter in py code

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MaxGhenis requested changes Jan 29, 2025

View reviewed changes

policyengine_uk/parameters/gov/hmrc/tax_free_childcare/incompatible_benefits.yaml Outdated Show resolved Hide resolved

policyengine_uk/parameters/gov/hmrc/tax_free_childcare/investment_income_types.yaml Outdated Show resolved Hide resolved

MaxGhenis requested changes Jan 29, 2025

View reviewed changes

Add the benefit to the list of benefits

2956ae2

MaxGhenis requested changes Jan 30, 2025

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vahid-ahmadi mentioned this pull request Jan 30, 2025

Study childcare entitlement #1016

Open

vahid-ahmadi added 4 commits January 31, 2025 16:59

Apply Max's comments

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Edit law part

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Edit law part

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Merge branch 'tax-free-childcare-new' of https://github.com/policyeng…

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…ine/policyengine-uk into tax-free-childcare-new

MaxGhenis mentioned this pull request Feb 3, 2025

Extended childcare entitlement #1007

Open

vahid-ahmadi added 2 commits February 4, 2025 11:46

Merge branch 'master' into tax-free-childcare-new

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Edit benefit file for now

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nikhilwoodruff requested changes Feb 4, 2025

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policyengine_uk/parameters/gov/hmrc/tax_free_childcare/investment_income_types.yaml Outdated Show resolved Hide resolved

policyengine_uk/parameters/gov/hmrc/tax_free_childcare/investment_income_types.yaml Outdated Show resolved Hide resolved

vahid-ahmadi added 2 commits February 4, 2025 13:53

Apply Nikhil's comments

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Format with black

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vahid-ahmadi requested a review from nikhilwoodruff February 4, 2025 13:07

MaxGhenis approved these changes Feb 4, 2025

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policyengine_uk/parameters/gov/hmrc/tax_free_childcare/income/countable_sources.yaml Outdated Show resolved Hide resolved

nikhilwoodruff and others added 5 commits February 4, 2025 13:39

Update policyengine_uk/parameters/gov/hmrc/tax_free_childcare/income/…

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…countable_sources.yaml Co-authored-by: Max Ghenis <[email protected]>

Edit the description of countable income sources

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Merge branch 'tax-free-childcare-new' of https://github.com/policyeng…

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…ine/policyengine-uk into tax-free-childcare-new

Add TFC to gov_spending

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Edit name of the variable tax_free_childcare

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nikhilwoodruff approved these changes Feb 4, 2025

View reviewed changes

nikhilwoodruff merged commit 16cc0f0 into master Feb 4, 2025
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nikhilwoodruff deleted the tax-free-childcare-new branch February 4, 2025 14:09

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Tax free childcare #1004

Tax free childcare #1004

vahid-ahmadi commented Jan 10, 2025 •

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MaxGhenis commented Jan 11, 2025

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Tax free childcare #1004

Tax free childcare #1004

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vahid-ahmadi commented Jan 10, 2025 • edited Loading

Overview

Key Features

MaxGhenis commented Jan 11, 2025

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vahid-ahmadi commented Jan 30, 2025

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vahid-ahmadi commented Jan 10, 2025 •

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