Tax free childcare

policyengine_uk/parameters/gov/hmrc/minimum_wage.yaml

@@ -11,6 +11,8 @@ APPRENTICE:
     2020-04-01: 4.15
     2021-04-01: 4.3
     2022-04-01: 4.81
+    2024-04-01: 6.4
+    2025-04-01: 7.55
 BETWEEN_18_20:
   values:
     2012-10-01: 4.98
@@ -24,6 +26,8 @@ BETWEEN_18_20:
     2020-04-01: 6.45
     2021-04-01: 6.56
     2022-04-01: 6.83
+    2024-04-01: 8.6
+    2025-04-01: 10
 BETWEEN_21_22:
   values:
     2012-10-01: 6.19
@@ -38,6 +42,8 @@ BETWEEN_21_22:
     2020-04-01: 8.2
     2021-04-01: 8.36
     2022-04-01: 9.18
+    2024-04-01: 11.44
+    2025-04-01: 12.21
 BETWEEN_23_24:
   values:
     2012-10-01: 6.19
@@ -51,6 +57,8 @@ BETWEEN_23_24:
     2020-04-01: 8.2
     2021-04-01: 8.91
     2022-04-01: 9.5
+    2024-04-01: 11.44
+    2025-04-01: 12.21
 OVER_24:
   values:
     2012-10-01: 6.19
@@ -64,6 +72,8 @@ OVER_24:
     2020-04-01: 8.72
     2021-04-01: 8.91
     2022-04-01: 9.5
+    2024-04-01: 11.44
+    2025-04-01: 12.21
 UNDER_18:
   values:
     2012-10-01: 3.68
@@ -77,6 +87,8 @@ UNDER_18:
     2020-04-01: 4.55
     2021-04-01: 4.62
     2022-04-01: 4.81
+    2024-04-01: 6.4
+    2025-04-01: 7.55
 description: Minimum wage by age group
 metadata:
   economy: false

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

@@ -0,0 +1,12 @@
+description: The HMRC department extends the tax-free childcare program eligibility to children with disabilities up to this age threshold.
+metadata:
+  unit: year
+  period: year
+  label: Tax-free childcare disability age limit
+  reference:
+    - title: Childcare Payments Act 2014 - c. 28 - section 14
+      href: https://www.legislation.gov.uk/ukpga/2014/28/notes/division/6/4/1
+    - title: Tax-free childcare guidance
+      href: https://www.gov.uk/tax-free-childcare?step-by-step-nav=d78aeaf6-1747-4d72-9619-f16efb4dd89d
+values:
+  2015-01-01: 17

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

@@ -0,0 +1,12 @@
+description: The HMRC department extends the tax-free childcare program eligibility to children up to this age threshold.
+metadata:
+  unit: year
+  period: year
+  label: Tax-free childcare standard age limit
+  reference:
+    - title: Childcare Payments Act 2014 - c. 28 - section 14
+      href: https://www.legislation.gov.uk/ukpga/2014/28/notes/division/6/4/1
+    - title: Tax-free childcare guidance
+      href: https://www.gov.uk/tax-free-childcare?step-by-step-nav=d78aeaf6-1747-4d72-9619-f16efb4dd89d
+values:
+  2015-01-01: 12

policyengine_uk/parameters/gov/hmrc/tax_free_childcare/contribution/disabled_child.yaml

@@ -0,0 +1,12 @@
+description: The HMRC department provides tax-free childcare contribution up to this yearly amount for households with disabled children.
+metadata:
+  unit: currency-GBP
+  period: year
+  label: Tax-free childcare disabled child yearly limit
+  reference:
+    - title: Childcare Payments Act 2014 - c. 28 - section 19
+      href: https://www.legislation.gov.uk/ukpga/2014/28/notes/division/6/5/5
+    - title: Tax-free childcare guidance
+      href: https://www.gov.uk/tax-free-childcare?step-by-step-nav=d78aeaf6-1747-4d72-9619-f16efb4dd89d
+values:
+  2015-01-01: 4_000

policyengine_uk/parameters/gov/hmrc/tax_free_childcare/contribution/standard_child.yaml

@@ -0,0 +1,12 @@
+description: The HMRC department provides tax-free childcare contribution up to this yearly amount for households with children under standard eligibility.
+metadata:
+  unit: currency-GBP
+  period: year
+  label: Tax-free childcare standard yearly limit
+  reference:
+    - title: Childcare Payments Act 2014 - c. 28 - section 19
+      href: https://www.legislation.gov.uk/ukpga/2014/28/notes/division/6/5/5
+    - title: Tax-free childcare guidance
+      href: https://www.gov.uk/tax-free-childcare?step-by-step-nav=d78aeaf6-1747-4d72-9619-f16efb4dd89d
+values:
+  2015-01-01: 2_000

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

@@ -0,0 +1,13 @@
+description: HMRC limits Tax-Free Childcare to benefit units that do not receive any of these programs.
+metadata:
+  reference: 
+  - title: The Childcare Payments (Eligibility) Regulations 2015 - Part 16 and 18
+    href: https://www.legislation.gov.uk/ukdsi/2015/9780111127063
+  period: year
+  unit: program
+  label: Tax-free childcare disqualifying benefits
+values:
+  2015-01-01:
+    - working_tax_credit
+    - child_tax_credit
+    - universal_credit

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

@@ -0,0 +1,12 @@
+description: The HMRC department limits tax-free childcare eligibility to households where individual adjusted income does not exceed this yearly threshold.
+metadata:
+  unit: currency-GBP
+  period: year
+  label: Tax-free childcare maximum adjusted income threshold
+  reference:
+    - title: The Childcare Payments (Eligibility) Regulations 2015 - Regulation 15
+      href: https://www.legislation.gov.uk/uksi/2015/448/regulation/15#commentary-key-e27c923eee152accd495af8425536e29
+    - title: Tax-free childcare guidance
+      href: https://www.gov.uk/tax-free-childcare?step-by-step-nav=d78aeaf6-1747-4d72-9619-f16efb4dd89d
+values:
+  2015-01-01: 100_000

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

@@ -0,0 +1,14 @@
+description: HMRC excludes certain investment income types when determining eligibility for Tax-Free Childcare, including pension, savings, dividend, and property income
+metadata:
+  reference:
+  - title: The Childcare Payments (Eligibility) Regulations 2015 - Part 16 and 18
+    href: https://www.legislation.gov.uk/ukdsi/2015/9780111127063
+  period: year
+  unit: currency-GBP
+  label: none
+values:
+  2015-01-01:
+    - private_pension_income
+    - savings_interest_income
+    - dividend_income
+    - property_income

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

@@ -0,0 +1,10 @@
+description: Claimants must work sufficient hours to earn the equivalent of 16 hours per week at National Minimum Wage.
+metadata:
+  period: year
+  unit: hour
+  label: Minimum weekly working hours threshold at National Minimum Wage
+  reference:
+    - title: The Childcare Payments (Eligibility) (Amendment) Regulations 2016 - regulation 3
+      href: https://www.legislation.gov.uk/uksi/2016/793/regulation/3/made
+values:
+  2016-01-01: 16

policyengine_uk/tests/policy/baseline/gov/hmrc/tax_free_childcare/tax_free_childcare_age_child_condition.yaml

@@ -0,0 +1,31 @@
+- name: Under standard age limit - eligible
+  period: 2025
+  input:
+    age: 10
+    is_disabled_for_benefits: false
+  output:
+    tax_free_childcare_child_age_eligible: true
+
+- name: Over standard age limit and not disabled - ineligible
+  period: 2025
+  input:
+    age: 12
+    is_disabled_for_benefits: false
+  output:
+    tax_free_childcare_child_age_eligible: false
+
+- name: Over standard age but under disability limit and disabled - eligible
+  period: 2025
+  input:
+    age: 15
+    is_disabled_for_benefits: true
+  output:
+    tax_free_childcare_child_age_eligible: true
+
+- name: Over disability age limit and disabled - ineligible
+  period: 2025
+  input:
+    age: 17
+    is_disabled_for_benefits: true
+  output:
+    tax_free_childcare_child_age_eligible: false

policyengine_uk/tests/policy/baseline/gov/hmrc/tax_free_childcare/tax_free_childcare_benefits_amount.yaml

@@ -0,0 +1,36 @@
+# Tests for tax_free_childcare
+- name: Eligible standard child
+  period: 2025
+  input:
+    tax_free_childcare_eligible: true
+    is_child: true
+    is_disabled_for_benefits: false
+  output:
+    tax_free_childcare_benefits_amount: 2000
+
+- name: Eligible disabled child
+  period: 2025
+  input:
+    tax_free_childcare_eligible: true
+    is_child: true
+    is_disabled_for_benefits: true
+  output:
+    tax_free_childcare_benefits_amount: 4000
+
+- name: Not eligible due to not being child
+  period: 2025
+  input:
+    tax_free_childcare_eligible: true
+    is_child: false
+    is_disabled_for_benefits: false
+  output:
+    tax_free_childcare_benefits_amount: 0
+
+- name: Not eligible despite being disabled child
+  period: 2025
+  input:
+    tax_free_childcare_eligible: false
+    is_child: true
+    is_disabled_for_benefits: true
+  output:
+    tax_free_childcare_benefits_amount: 0

policyengine_uk/tests/policy/baseline/gov/hmrc/tax_free_childcare/tax_free_childcare_eligibility.yaml

@@ -0,0 +1,51 @@
+# Tests for tax_free_childcare_overall_eligible
+- name: All conditions met
+  period: 2025
+  input:
+    tax_free_childcare_child_age_eligible: true
+    tax_free_childcare_meets_income_requirements: true
+    tax_free_childcare_program_eligible: true
+    tax_free_childcare_work_condition: true
+  output:
+    tax_free_childcare_eligible: true
+
+- name: Fails age condition only
+  period: 2025
+  input:
+    tax_free_childcare_child_age_eligible: false
+    tax_free_childcare_meets_income_requirements: true
+    tax_free_childcare_program_eligible: true
+    tax_free_childcare_work_condition: true
+  output:
+    tax_free_childcare_eligible: false
+
+- name: Fails income condition only
+  period: 2025
+  input:
+    tax_free_childcare_child_age_eligible: true
+    tax_free_childcare_meets_income_requirements: false
+    tax_free_childcare_program_eligible: true
+    tax_free_childcare_work_condition: true
+  output:
+    tax_free_childcare_eligible: false
+
+- name: Fails work condition only
+  period: 2025
+  input:
+    tax_free_childcare_child_age_eligible: true
+    tax_free_childcare_meets_income_requirements: true
+    tax_free_childcare_program_eligible: true
+    tax_free_childcare_work_condition: false
+  output:
+    tax_free_childcare_eligible: false
+
+- name: Fails all conditions
+  period: 2025
+  input:
+    tax_free_childcare_child_age_eligible: false
+    tax_free_childcare_meets_income_requirements: false
+    tax_free_childcare_program_eligible: false
+    tax_free_childcare_work_condition: false
+  output:
+    tax_free_childcare_eligible: false
+

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

@@ -0,0 +1,91 @@
+# Tests for age under 18 bracket (threshold: £1,331 quarterly)
+- name: Under threshold for age 15 with low income and no other income sources - ineligible
+  period: 2025
+  input:
+    age: 15
+    total_income: 5000  
+    private_pension_income: 0
+    savings_interest_income: 500
+    dividend_income: 0
+    property_income: 0
+  output:
+    tax_free_childcare_meets_income_requirements: false
+
+# Tests for age 18-20 bracket (threshold: £1,788 quarterly)
+- name: Under threshold for age 19 - ineligible
+  period: 2025
+  input:
+    age: 19
+    total_income: 7000  # £1,750 quarterly
+    private_pension_income: 0
+    savings_interest_income: 0
+    dividend_income: 0
+    property_income: 0
+  output:
+    tax_free_childcare_meets_income_requirements: false
+
+- name: At threshold for age 18 - eligible
+  period: 2025
+  input:
+    age: 18
+    total_income: 4152  
+    private_pension_income: 0
+    savings_interest_income: 0
+    dividend_income: 0
+    property_income: 0
+  output:
+    tax_free_childcare_meets_income_requirements: false
+
+# Tests for age 21+ bracket (threshold: £2,379 quarterly)
+- name: Under threshold for age 22 - ineligible
+  period: 2025
+  input:
+    age: 22
+    total_income: 9000  # £2,250 quarterly
+    private_pension_income: 0
+    savings_interest_income: 0
+    dividend_income: 0
+    property_income: 0
+  output:
+    tax_free_childcare_meets_income_requirements: false
+
+- name: age 18 - eligible
+  period: 2025
+  input:
+    age: 18
+    total_income: 9516  # £2,379 quarterly
+    private_pension_income: 0
+    savings_interest_income: 0
+    dividend_income: 0
+    property_income: 0
+  output:
+    tax_free_childcare_meets_income_requirements: true
+
+# Tests with investment income
+- name: Above threshold but with investment income making eligible income below threshold - ineligible
+  period: 2025
+  input:
+    age: 22
+    total_income: 12000
+    private_pension_income: 3000
+    savings_interest_income: 500
+    dividend_income: 1000
+    property_income: 500
+    # Net eligible income: 7000 (£1,750 quarterly)
+  output:
+    tax_free_childcare_meets_income_requirements: false
+
+
+# Test age boundary cases
+- name: over 100k
+  period: 2025
+  input:
+    age: 18
+    total_income: 217152  
+    adjusted_net_income: 217152
+    private_pension_income: 0
+    savings_interest_income: 100
+    dividend_income: 0
+    property_income: 0
+  output:
+    tax_free_childcare_meets_income_requirements: false