Merge pull request #1562 from PolicyEngine/codex/fix-1045

Add qualifying provider check for tax-free childcare

Author: MaxGhenis

changelog.d/tax-free-childcare-qualifying-provider-checks.fixed.md

@@ -0,0 +1 @@
+Tax-Free Childcare now requires childcare expenses to be paid to a qualifying provider when that input is supplied.

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

@@ -67,4 +67,15 @@
     is_disabled_for_benefits: false
     childcare_expenses: 1_000 
   output:
-    tax_free_childcare: 250
+    tax_free_childcare: 250
+
+- name: Non-qualifying provider gets no support
+  period: 2025
+  input:
+    tax_free_childcare_eligible: true
+    is_parent: false
+    is_disabled_for_benefits: false
+    childcare_expenses: 10_000
+    tax_free_childcare_uses_qualifying_provider: false
+  output:
+    tax_free_childcare: 0

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

@@ -49,4 +49,3 @@
     tax_free_childcare_work_condition: false
   output:
     tax_free_childcare_eligible: false
-

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

@@ -24,9 +24,13 @@ def formula(person, period, parameters):
 
         # Get childcare expenses
         childcare_expense = person("childcare_expenses", period)
+        uses_qualifying_provider = person(
+            "tax_free_childcare_uses_qualifying_provider", period
+        )
+        eligible_childcare_expense = childcare_expense * uses_qualifying_provider
 
         # Calculate contribution using rate from parameters
-        contribution = (childcare_expense * p.rate) / (1 - p.rate)
+        contribution = (eligible_childcare_expense * p.rate) / (1 - p.rate)
 
         # Cap the contribution at the maximum amounts
         max_amount = (

policyengine_uk/variables/input/consumption/tax_free_childcare_uses_qualifying_provider.py

@@ -0,0 +1,13 @@
+from policyengine_uk.model_api import *
+
+
+class tax_free_childcare_uses_qualifying_provider(Variable):
+    label = "Tax-Free Childcare uses a qualifying childcare provider"
+    documentation = (
+        "Whether this person's childcare expenses are paid to a qualifying "
+        "childcare provider for Tax-Free Childcare purposes."
+    )
+    entity = Person
+    definition_period = YEAR
+    value_type = bool
+    default_value = True