policyengine-uk 2.40.1__py3-none-any.whl → 2.65.6__py3-none-any.whl

policyengine_uk/tests/policy/baseline/contrib/policyengine/employer_ni/employer_ni_fixed_employer_cost_change.yaml

@@ -0,0 +1,105 @@
+- name: Baseline scenario returns zero
+  period: 2023
+  absolute_error_margin: 0
+  input:
+    employment_income_before_lsr: 50000
+    employment_income_behavioral_response: 0
+    employer_pension_contributions: 0
+  output:
+    employer_ni_fixed_employer_cost_change: 0
+
+- name: Low income below threshold returns zero
+  period: 2023
+  absolute_error_margin: 0
+  input:
+    employment_income_before_lsr: 8000
+    employment_income_behavioral_response: 0
+    employer_pension_contributions: 0
+  output:
+    employer_ni_fixed_employer_cost_change: 0
+
+- name: Zero employee incidence returns zero
+  period: 2023
+  absolute_error_margin: 0
+  input:
+    employment_income_before_lsr: 50000
+    employment_income_behavioral_response: 0
+    employer_pension_contributions: 0
+    gov.contrib.policyengine.employer_ni.employee_incidence: 0
+  output:
+    employer_ni_fixed_employer_cost_change: 0
+
+- name: High income baseline scenario returns zero
+  period: 2023
+  absolute_error_margin: 0
+  input:
+    employment_income_before_lsr: 100000
+    employment_income_behavioral_response: 0
+    employer_pension_contributions: 0
+  output:
+    employer_ni_fixed_employer_cost_change: 0
+
+- name: With employer pension contributions baseline returns zero
+  period: 2023
+  absolute_error_margin: 0
+  input:
+    employment_income_before_lsr: 50000
+    employment_income_behavioral_response: 0
+    employer_pension_contributions: 5000
+  output:
+    employer_ni_fixed_employer_cost_change: 0
+
+- name: With statutory benefits baseline returns zero
+  period: 2023
+  absolute_error_margin: 0
+  input:
+    employment_income_before_lsr: 45000
+    employment_income_behavioral_response: 0
+    employer_pension_contributions: 0
+    statutory_sick_pay: 2000
+    statutory_maternity_pay: 3000
+    statutory_paternity_pay: 0
+  output:
+    employer_ni_fixed_employer_cost_change: 0
+
+- name: Income exactly at threshold baseline returns zero
+  period: 2023
+  absolute_error_margin: 0
+  input:
+    employment_income_before_lsr: 9100
+    employment_income_behavioral_response: 0
+    employer_pension_contributions: 0
+  output:
+    employer_ni_fixed_employer_cost_change: 0
+
+- name: Income slightly above threshold baseline returns zero
+  period: 2023
+  absolute_error_margin: 0
+  input:
+    employment_income_before_lsr: 9500
+    employment_income_behavioral_response: 0
+    employer_pension_contributions: 0
+  output:
+    employer_ni_fixed_employer_cost_change: 0
+
+- name: Pension contribution exemption disabled baseline returns zero
+  period: 2023
+  absolute_error_margin: 0
+  input:
+    employment_income_before_lsr: 50000
+    employment_income_behavioral_response: 0
+    employer_pension_contributions: 5000
+    gov.contrib.policyengine.employer_ni.exempt_employer_pension_contributions: false
+  output:
+    employer_ni_fixed_employer_cost_change: 0
+
+- name: Different incidence rate baseline returns zero
+  period: 2023
+  absolute_error_margin: 0
+  input:
+    employment_income_before_lsr: 50000
+    employment_income_behavioral_response: 0
+    employer_pension_contributions: 0
+    gov.contrib.policyengine.employer_ni.employee_incidence: 0.5
+  output:
+    employer_ni_fixed_employer_cost_change: 0

policyengine_uk/tests/policy/baseline/finance/benefit/family/child_benefit.yaml

@@ -26,6 +26,7 @@
     benunits:
       benunit:
         members: [parent1, parent2, child1]
+        would_claim_child_benefit: true
   output:
     child_benefit: 1098
 - name: Child Benefit with two children, one over 16
@@ -45,5 +46,6 @@
     benunits:
       benunit:
         members: [parent1, parent2, child1, child2]
+        would_claim_child_benefit: true
   output:
     child_benefit: 1825.20

policyengine_uk/tests/policy/baseline/finance/benefit/family/income_support.yaml

@@ -1,26 +1,3 @@
-- name: Lone parent, two children
-  period: 2021
-  absolute_error_margin: 1_000 # Temporarily for now
-  input:
-    people:
-      p1:
-        age: 26
-        income_support_reported: true
-        working_tax_credit_reported: true
-        child_tax_credit_reported: true
-      c1:
-        age: 4
-      c2:
-        age: 4
-    benunits:
-      b1:
-        members: [p1, c1, c2]
-        would_claim_child_benefit: true
-  output:
-    child_tax_credit: 6205
-    child_benefit: 35 * 52
-    income_support_eligible: true
-    income_support: 81 * 52
 - name: Lone parent, two children, earnings
   period: 2021
   absolute_error_margin: 5

policyengine_uk/tests/policy/baseline/gov/dcms/bbc/tv-licence/tv_licence.yaml

@@ -1,6 +1,7 @@
 - name: TV Licence full price - ineligible for aged or blind discount.
   period: 2023
   input:
+    household_owns_tv: true
     tv_licence_discount: 0
     would_evade_tv_licence_fee: false
   output:
@@ -9,6 +10,7 @@
 - name: TV Licence half price - eligible for blind discount but not aged.
   period: 2023
   input:
+    household_owns_tv: true
     tv_licence_discount: 0.5
     would_evade_tv_licence_fee: false
   output:
@@ -17,6 +19,7 @@
 - name: Free TV Licence - eligible for aged discount.
   period: 2023
   input:
+    household_owns_tv: true
     tv_licence_discount: 1
     would_evade_tv_licence_fee: false
   output:

policyengine_uk/tests/policy/baseline/gov/dfe/extended_childcare_entitlement/extended_childcare_entitlement.yaml

@@ -1,6 +1,6 @@
 - name: Eligible for 30 hours - All conditions met
   period: 2025
-  absolute_error_margin: 1
+  absolute_error_margin: 3
   input:
     people:
       child1:
@@ -10,11 +10,11 @@
         members: [child1]
         extended_childcare_entitlement_eligible: true
   output:
-    extended_childcare_entitlement: 6857.356
+    extended_childcare_entitlement: 6872.805
 
 - name: Eligible for 15 hours - All first conditions met
   period: 2025
-  absolute_error_margin: 1
+  absolute_error_margin: 2
   input:
     people:
       child1:
@@ -24,7 +24,7 @@
         members: [child1]
         extended_childcare_entitlement_eligible: true
   output:
-    extended_childcare_entitlement: 4828.138
+    extended_childcare_entitlement: 4839.016
 
 - name: Not eligible (one condition not met)
   period: 2025
@@ -42,7 +42,7 @@
 
 - name: Eligible for mixed hours - Family with multiple children
   period: 2025
-  absolute_error_margin: 1
+  absolute_error_margin: 4
   input:
     people:
       child1:
@@ -54,7 +54,7 @@
         members: [child1, child2]
         extended_childcare_entitlement_eligible: true
   output:
-    extended_childcare_entitlement: 11685.494
+    extended_childcare_entitlement: 11711.82
 
 - name: Not eligible - Family with multiple children but conditions not met
   period: 2025
@@ -74,7 +74,7 @@
 
 - name: Eligible with one working parent and one disabled parent
   period: 2025
-  absolute_error_margin: 1
+  absolute_error_margin: 6
   input:
     people:
       child1:
@@ -89,7 +89,7 @@
         family_type: COUPLE_WITH_CHILDREN
         extended_childcare_entitlement_eligible: true
   output:
-    extended_childcare_entitlement: 18542.85
+    extended_childcare_entitlement: 18584.625
 
 - name: No expenses for zero hours
   period: 2025
@@ -107,7 +107,7 @@
 
 - name: Child using fewer hours than maximum entitlement
   period: 2025
-  absolute_error_margin: 1
+  absolute_error_margin: 2
   input:
     people:
       child1:
@@ -118,11 +118,11 @@
         members: [child1]
         extended_childcare_entitlement_eligible: true
   output:
-    extended_childcare_entitlement: 4571.5703  # 20 hours * 38 weeks * £6.07 per hour (2025 rate)
+    extended_childcare_entitlement: 4581.87  # 20 hours * 38 weeks * £6.07 per hour (2025 rate)
 
 - name: Child using fewer hours than maximum entitlement - multiple children
   period: 2025
-  absolute_error_margin: 1
+  absolute_error_margin: 2
   input:
     people:
       child1:
@@ -136,11 +136,11 @@
         members: [child1, child2]
         extended_childcare_entitlement_eligible: true
   output:
-    extended_childcare_entitlement: 6647.4365
+    extended_childcare_entitlement: 6662.413
 
 - name: Benefit unit maximum hours cap applied
   period: 2025
-  absolute_error_margin: 1
+  absolute_error_margin: 5
   input:
     people:
       child1:
@@ -155,7 +155,7 @@
         extended_childcare_entitlement_eligible: true
         maximum_extended_childcare_hours_usage: 40 
   output:
-    extended_childcare_entitlement: 13714.712
+    extended_childcare_entitlement: 13745.609
 
 
 - name: Benefit unit without maximum hours cap applied
@@ -172,12 +172,12 @@
         extended_childcare_entitlement_eligible: true
         maximum_extended_childcare_hours_usage: 10 
   output:
-    extended_childcare_entitlement: 2285.7852
+    extended_childcare_entitlement: 2290.935
 
 
 - name: Benefit unit without maximum hours cap applied with 3 years old child
   period: 2025
-  absolute_error_margin: 1
+  absolute_error_margin: 2
   input:
     people:
       child1:
@@ -189,4 +189,4 @@
         extended_childcare_entitlement_eligible: true
         maximum_extended_childcare_hours_usage: 18 
   output:
-    extended_childcare_entitlement: 3428.678
+    extended_childcare_entitlement: 3436.402

policyengine_uk/tests/policy/baseline/gov/dwp/basic_state_pension.yaml

@@ -0,0 +1,44 @@
+- name: Basic state pension calculation with normal parameters
+  period: 2021
+  input:
+    people:
+      person1:
+        state_pension_reported: 5000
+        state_pension_type: BASIC
+        age: 70
+  output:
+    basic_state_pension: 5000  # Reported amount (under maximum)
+
+- name: Basic state pension caps at maximum when reported exceeds maximum
+  period: 2021
+  input:
+    people:
+      person1:
+        state_pension_reported: 10000  # Higher than maximum
+        state_pension_type: BASIC
+        age: 70
+  output:
+    basic_state_pension: 7155.2  # Capped at maximum (137.60 * 52)
+
+- name: Non-basic state pension type returns zero for basic_state_pension
+  period: 2021
+  input:
+    people:
+      person1:
+        state_pension_reported: 5000
+        state_pension_type: NEW  # Not basic pension
+        age: 70
+  output:
+    basic_state_pension: 0  # basic_state_pension is only for BASIC type
+
+- name: Basic state pension should be zero when maximum is zero
+  period: 2021
+  input:
+    gov.dwp.state_pension.basic_state_pension.amount: 0
+    people:
+      person1:
+        state_pension_reported: 5000
+        state_pension_type: BASIC
+        age: 70
+  output:
+    basic_state_pension: 0

policyengine_uk/tests/policy/baseline/gov/hmrc/income_tax/allowances/gift_aid.yaml

@@ -0,0 +1,71 @@
+# Gift Aid tests
+# ITA 2007 s.58 requires grossed-up Gift Aid to be deducted from ANI
+# when calculating Personal Allowance taper
+
+- name: Higher rate taxpayer gets 40% relief
+  period: 2025
+  absolute_error_margin: 1
+  input:
+    employment_income: 60000
+    gift_aid: 1000
+  output:
+    # Basic rate band is £37,700, PA is £12,570
+    # Higher rate threshold = £50,270
+    # £60k income means in 40% band
+    # £1k gift aid reduces taxable income by £1k, saving 40%
+    income_tax: 11032
+
+- name: Basic rate taxpayer gets 20% relief
+  period: 2025
+  absolute_error_margin: 1
+  input:
+    employment_income: 30000
+    gift_aid: 1000
+  output:
+    # In basic rate band, £1k gift aid saves 20%
+    income_tax: 3286
+
+- name: Gift Aid reduces ANI for PA taper - full PA restored
+  period: 2025
+  absolute_error_margin: 1
+  input:
+    employment_income: 110000
+    gift_aid: 10000
+  output:
+    # Per ITA 2007 s.58, Gift Aid (grossed up) reduces ANI for PA taper
+    # £10k net = £12,500 gross
+    # ANI for PA taper = £110k - £12.5k = £97,500
+    # This is below £100k threshold, so full PA restored
+    personal_allowance: 12570
+
+- name: Gift Aid partially restores PA in taper zone
+  period: 2025
+  absolute_error_margin: 1
+  input:
+    employment_income: 115000
+    gift_aid: 4000
+  output:
+    # £4k net = £5k gross
+    # ANI for PA taper = £115k - £5k = £110k
+    # Excess over £100k = £10k
+    # PA reduction = £10k * 0.5 = £5k
+    # PA = £12,570 - £5k = £7,570
+    personal_allowance: 7570
+
+- name: PA taper zone effective relief is ~60%
+  period: 2025
+  absolute_error_margin: 50
+  input:
+    employment_income: 110000
+    gift_aid: 10000
+  output:
+    # Without gift aid: PA = £7,570, tax ~£33,432
+    # With £10k gift aid (£12.5k gross):
+    #   - ANI for PA taper reduced to £97,500 (below £100k)
+    #   - Full PA £12,570 restored
+    #   - Taxable = £110k - £12,570 (PA) - £10k (gift aid) = £87,430
+    #   - Tax at basic rate (£37,700): £7,540
+    #   - Tax at higher rate (£87,430 - £37,700 = £49,730): £19,892
+    #   - Total: £27,432
+    # Tax savings: ~£6,000 = 60% effective relief on £10k donation
+    income_tax: 27432

policyengine_uk/tests/policy/baseline/gov/hmrc/income_tax/allowances/personal_allowance.yaml

@@ -0,0 +1,161 @@
+# Personal Allowance tests
+# ITA 2007 s.35: Personal Allowance
+# ITA 2007 s.58: ANI for PA taper excludes grossed-up Gift Aid
+
+# ============================================
+# Basic PA tests (no Gift Aid)
+# ============================================
+
+- name: Full PA below taper threshold
+  period: 2025
+  absolute_error_margin: 1
+  input:
+    employment_income: 50000
+  output:
+    # Below £100k threshold, full PA
+    personal_allowance: 12570
+
+- name: Full PA at exactly taper threshold
+  period: 2025
+  absolute_error_margin: 1
+  input:
+    employment_income: 100000
+  output:
+    # At exactly £100k, no taper yet
+    personal_allowance: 12570
+
+- name: PA taper begins above £100k
+  period: 2025
+  absolute_error_margin: 1
+  input:
+    employment_income: 105000
+  output:
+    # £5k over threshold, lose £2.5k PA (50% taper)
+    # PA = £12,570 - £2,500 = £10,070
+    personal_allowance: 10070
+
+- name: PA fully tapered at £125,140
+  period: 2025
+  absolute_error_margin: 1
+  input:
+    employment_income: 125140
+  output:
+    # £25,140 over threshold, lose all PA (50% of £25,140 = £12,570)
+    personal_allowance: 0
+
+- name: PA remains zero above full taper
+  period: 2025
+  absolute_error_margin: 1
+  input:
+    employment_income: 150000
+  output:
+    personal_allowance: 0
+
+# ============================================
+# PA taper with Gift Aid (ITA 2007 s.58)
+# These tests verify the fix for grossed-up Gift Aid deduction
+# ============================================
+
+- name: Gift Aid does not affect PA below taper threshold
+  period: 2025
+  absolute_error_margin: 1
+  input:
+    employment_income: 50000
+    gift_aid: 5000
+  output:
+    # Already below £100k, Gift Aid doesn't change PA
+    personal_allowance: 12570
+
+- name: Gift Aid reduces ANI for taper - partial restoration
+  period: 2025
+  absolute_error_margin: 1
+  input:
+    employment_income: 105000
+    gift_aid: 4000
+  output:
+    # Without Gift Aid: ANI = £105k, PA = £10,070
+    # Gift Aid = £4k, grossed up = £5k
+    # ANI for taper = £105k - £5k = £100k (at threshold)
+    # Full PA restored
+    personal_allowance: 12570
+
+- name: Gift Aid partially restores PA in deep taper
+  period: 2025
+  absolute_error_margin: 1
+  input:
+    employment_income: 120000
+    gift_aid: 8000
+  output:
+    # Without Gift Aid: ANI = £120k, excess = £20k, PA reduction = £10k
+    # Gift Aid = £8k, grossed up = £10k
+    # ANI for taper = £120k - £10k = £110k
+    # Excess = £10k, PA reduction = £5k
+    # PA = £12,570 - £5,000 = £7,570
+    personal_allowance: 7570
+
+- name: Gift Aid fully restores PA from zero
+  period: 2025
+  absolute_error_margin: 1
+  input:
+    employment_income: 130000
+    gift_aid: 24000
+  output:
+    # Without Gift Aid: ANI = £130k, PA = £0
+    # Gift Aid = £24k, grossed up = £30k
+    # ANI for taper = £130k - £30k = £100k (at threshold)
+    # Full PA restored
+    personal_allowance: 12570
+
+# ============================================
+# Edge cases with zero Gift Aid
+# Verify the fix doesn't break anything when gift_aid = 0
+# ============================================
+
+- name: Zero Gift Aid - PA taper works normally at £110k
+  period: 2025
+  absolute_error_margin: 1
+  input:
+    employment_income: 110000
+    gift_aid: 0
+  output:
+    # ANI = £110k, excess = £10k, PA reduction = £5k
+    # PA = £12,570 - £5,000 = £7,570
+    personal_allowance: 7570
+
+- name: Zero Gift Aid - PA taper works normally at £115k
+  period: 2025
+  absolute_error_margin: 1
+  input:
+    employment_income: 115000
+    gift_aid: 0
+  output:
+    # ANI = £115k, excess = £15k, PA reduction = £7.5k
+    # PA = £12,570 - £7,500 = £5,070
+    personal_allowance: 5070
+
+- name: Zero Gift Aid - PA fully tapered
+  period: 2025
+  absolute_error_margin: 1
+  input:
+    employment_income: 150000
+    gift_aid: 0
+  output:
+    personal_allowance: 0
+
+# ============================================
+# Scottish taxpayer tests
+# PA taper should work the same regardless of region
+# ============================================
+
+- name: Scottish taxpayer - PA taper with Gift Aid
+  period: 2025
+  absolute_error_margin: 1
+  input:
+    employment_income: 110000
+    gift_aid: 10000
+    country: "SCOTLAND"
+  output:
+    # Gift Aid = £10k, grossed up = £12.5k
+    # ANI for taper = £110k - £12.5k = £97.5k (below £100k)
+    # Full PA restored
+    personal_allowance: 12570

policyengine_uk/tests/policy/baseline/gov/hmrc/national_insurance/salary_sacrifice_pension_ni_employee.yaml

@@ -0,0 +1,107 @@
+- name: No employee NI charge when salary sacrifice below £2,000 cap
+  period: 2025
+  absolute_error_margin: 0.01
+  input:
+    employment_income: 40_000
+    pension_contributions_via_salary_sacrifice: 1_500
+    gov.hmrc.national_insurance.salary_sacrifice_pension_cap: 2_000
+    gov.contrib.behavioral_responses.salary_sacrifice_broad_base_haircut_rate: 0
+  output:
+    salary_sacrifice_pension_ni_employee: 0
+
+- name: Employee NI charge at 8% main rate for moderate earner above cap
+  period: 2025
+  absolute_error_margin: 0.01
+  input:
+    employment_income: 45_000
+    pension_contributions_via_salary_sacrifice: 2_250
+    gov.hmrc.national_insurance.salary_sacrifice_pension_cap: 2_000
+    gov.contrib.behavioral_responses.salary_sacrifice_broad_base_haircut_rate: 0
+  output:
+    # £250 excess * 8% = £20
+    salary_sacrifice_pension_ni_employee: (2_250 - 2_000) * 0.08
+
+- name: Employee NI charge at 8% main rate for earner just below UEL
+  period: 2025
+  absolute_error_margin: 0.01
+  input:
+    employment_income: 50_000
+    pension_contributions_via_salary_sacrifice: 10_000
+    gov.hmrc.national_insurance.salary_sacrifice_pension_cap: 2_000
+    gov.contrib.behavioral_responses.salary_sacrifice_broad_base_haircut_rate: 0
+  output:
+    # £8,000 excess * 8% = £640
+    salary_sacrifice_pension_ni_employee: (10_000 - 2_000) * 0.08
+
+- name: Employee NI charge at 2% additional rate for high earner above UEL
+  period: 2025
+  absolute_error_margin: 0.01
+  input:
+    employment_income: 125_000
+    pension_contributions_via_salary_sacrifice: 25_000
+    gov.hmrc.national_insurance.salary_sacrifice_pension_cap: 2_000
+    gov.contrib.behavioral_responses.salary_sacrifice_broad_base_haircut_rate: 0
+  output:
+    # £23,000 excess * 2% = £460
+    salary_sacrifice_pension_ni_employee: (25_000 - 2_000) * 0.02
+
+- name: Employee NI charge at 2% for earner well above UEL
+  period: 2025
+  absolute_error_margin: 0.01
+  input:
+    employment_income: 80_000
+    pension_contributions_via_salary_sacrifice: 5_000
+    gov.hmrc.national_insurance.salary_sacrifice_pension_cap: 2_000
+    gov.contrib.behavioral_responses.salary_sacrifice_broad_base_haircut_rate: 0
+  output:
+    # £3,000 excess * 2% = £60
+    salary_sacrifice_pension_ni_employee: (5_000 - 2_000) * 0.02
+
+- name: No employee NI charge when exactly at cap
+  period: 2025
+  absolute_error_margin: 0.01
+  input:
+    employment_income: 60_000
+    pension_contributions_via_salary_sacrifice: 2_000
+    gov.hmrc.national_insurance.salary_sacrifice_pension_cap: 2_000
+    gov.contrib.behavioral_responses.salary_sacrifice_broad_base_haircut_rate: 0
+  output:
+    salary_sacrifice_pension_ni_employee: 0
+
+- name: Employee NI charge for small excess over cap
+  period: 2025
+  absolute_error_margin: 0.01
+  input:
+    employment_income: 35_000
+    pension_contributions_via_salary_sacrifice: 2_100
+    gov.hmrc.national_insurance.salary_sacrifice_pension_cap: 2_000
+    gov.contrib.behavioral_responses.salary_sacrifice_broad_base_haircut_rate: 0
+  output:
+    # £100 excess * 8% = £8
+    salary_sacrifice_pension_ni_employee: 100 * 0.08
+
+- name: Employee NI on full redirected excess
+  period: 2025
+  absolute_error_margin: 0.01
+  input:
+    employment_income: 45_000
+    pension_contributions_via_salary_sacrifice: 3_000
+    gov.hmrc.national_insurance.salary_sacrifice_pension_cap: 2_000
+    gov.contrib.behavioral_responses.salary_sacrifice_broad_base_haircut_rate: 0
+  output:
+    # £1,000 excess * 8% = £80
+    salary_sacrifice_pension_ni_employee: (3_000 - 2_000) * 0.08
+    # Full excess is redirected (no targeted haircut)
+    salary_sacrifice_returned_to_income: 1_000
+
+- name: Broad-base haircut reduces all workers employment income
+  period: 2025
+  absolute_error_margin: 1
+  input:
+    employment_income_before_lsr: 50_000
+    pension_contributions_via_salary_sacrifice: 0
+    gov.hmrc.national_insurance.salary_sacrifice_pension_cap: 2_000
+    gov.contrib.behavioral_responses.salary_sacrifice_broad_base_haircut_rate: 0.0016
+  output:
+    # Worker with no salary sacrifice still has employment income reduced by 0.16%
+    salary_sacrifice_broad_base_haircut: -80  # -50_000 * 0.0016