Treat qualifying leave as work for Tax-Free Childcare (#1600)

Author: MaxGhenis

changelog.d/1044.md

@@ -0,0 +1 @@
+- Added Tax-Free Childcare temporary absence from work handling.

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

@@ -0,0 +1,54 @@
+- name: Person in work is treated as in work
+  period: 2025
+  input:
+    in_work: true
+  output:
+    tax_free_childcare_treated_as_in_work: true
+
+- name: Person on qualifying leave is treated as in work
+  period: 2025
+  input:
+    in_work: false
+    tax_free_childcare_on_qualifying_leave: true
+  output:
+    tax_free_childcare_treated_as_in_work: true
+
+- name: Person receiving statutory sick pay is treated as in work
+  period: 2025
+  input:
+    in_work: false
+    statutory_sick_pay: 100
+  output:
+    tax_free_childcare_treated_as_in_work: true
+
+- name: Person receiving maternity allowance is treated as in work
+  period: 2025
+  input:
+    in_work: false
+    maternity_allowance: 100
+  output:
+    tax_free_childcare_treated_as_in_work: true
+
+- name: Person receiving statutory maternity pay is treated as in work
+  period: 2025
+  input:
+    in_work: false
+    statutory_maternity_pay: 100
+  output:
+    tax_free_childcare_treated_as_in_work: true
+
+- name: Person receiving statutory paternity pay is treated as in work
+  period: 2025
+  input:
+    in_work: false
+    statutory_paternity_pay: 100
+  output:
+    tax_free_childcare_treated_as_in_work: true
+
+- name: Person with no work or temporary absence condition is not treated as in work
+  period: 2025
+  input:
+    in_work: false
+    tax_free_childcare_on_qualifying_leave: false
+  output:
+    tax_free_childcare_treated_as_in_work: false

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

@@ -164,4 +164,56 @@
      benunit:
        members: [person]
   output:
-   tax_free_childcare_work_condition: false
+   tax_free_childcare_work_condition: false
+
+- name: Single adult on qualifying parenting leave - eligible
+  period: 2025
+  input:
+   people:
+     person:
+       is_adult: true
+       in_work: false
+       tax_free_childcare_on_qualifying_leave: true
+   benunits:
+     benunit:
+       members: [person]
+  output:
+   tax_free_childcare_work_condition: true
+
+- name: Couple one working one on qualifying parenting leave - eligible
+  period: 2025
+  input:
+   people:
+     person:
+       is_adult: true
+       is_parent: true
+       in_work: true
+     spouse:
+       is_adult: true
+       is_parent: true
+       in_work: false
+       tax_free_childcare_on_qualifying_leave: true
+   benunits:
+     benunit:
+       members: [person, spouse]
+  output:
+   tax_free_childcare_work_condition: true
+
+- name: Couple one working one receiving statutory maternity pay - eligible
+  period: 2025
+  input:
+   people:
+     person:
+       is_adult: true
+       is_parent: true
+       in_work: true
+     spouse:
+       is_adult: true
+       is_parent: true
+       in_work: false
+       statutory_maternity_pay: 100
+   benunits:
+     benunit:
+       members: [person, spouse]
+  output:
+   tax_free_childcare_work_condition: true

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

@@ -0,0 +1,17 @@
+from policyengine_uk.model_api import *
+
+
+class tax_free_childcare_on_qualifying_leave(Variable):
+    value_type = bool
+    entity = Person
+    label = "on qualifying leave for tax-free childcare"
+    documentation = (
+        "Whether this person is on qualifying sickness, parenting, annual, "
+        "parental bereavement, or neonatal care leave for Tax-Free Childcare."
+    )
+    definition_period = YEAR
+    default_value = False
+    reference = [
+        "https://www.legislation.gov.uk/uksi/2015/448/regulation/12",
+        "https://www.legislation.gov.uk/uksi/2015/448/regulation/14",
+    ]

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

@@ -0,0 +1,32 @@
+from policyengine_uk.model_api import *
+
+
+class tax_free_childcare_treated_as_in_work(Variable):
+    value_type = bool
+    entity = Person
+    label = "treated as in work for tax-free childcare"
+    definition_period = YEAR
+    reference = [
+        "https://www.legislation.gov.uk/uksi/2015/448/regulation/12",
+        "https://www.legislation.gov.uk/uksi/2015/448/regulation/14",
+    ]
+
+    def formula(person, period, parameters):
+        statutory_temporary_absence_pay = (
+            add(
+                person,
+                period,
+                [
+                    "statutory_sick_pay",
+                    "maternity_allowance",
+                    "statutory_maternity_pay",
+                    "statutory_paternity_pay",
+                ],
+            )
+            > 0
+        )
+        return (
+            person("in_work", period)
+            | person("tax_free_childcare_on_qualifying_leave", period)
+            | statutory_temporary_absence_pay
+        )

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

@@ -11,8 +11,10 @@ def formula(person, period, parameters):
         benunit = person.benunit
         is_adult = person("is_adult", period)
 
-        # Basic work status
-        in_work = person("in_work", period)
+        treated_as_in_work = person(
+            "tax_free_childcare_treated_as_in_work",
+            period,
+        )
 
         # Get disability parameters and check eligibility
         p_gc_disability = parameters(
@@ -33,14 +35,14 @@ def formula(person, period, parameters):
         # Build conditions
         # Single adult conditions
         is_single = person.benunit("is_single", period)
-        single_working = is_single & in_work
+        single_working = is_single & treated_as_in_work
 
         # Couple conditions
         is_couple = person.benunit("is_couple", period)
         benunit_has_condition = benunit.any(eligible_based_on_disability & is_adult)
-        benunit_has_worker = benunit.any(in_work & is_adult)
+        benunit_has_worker = benunit.any(treated_as_in_work & is_adult)
         couple_both_working = is_couple & benunit.all(
-            in_work | ~person("is_parent", period)
+            treated_as_in_work | ~person("is_parent", period)
         )
         couple_one_working_one_disabled = (
             is_couple & benunit_has_worker & benunit_has_condition