Corporation Tax Act 2009

[F1 104P Total expenditure on workers U.K.

(1) For the purposes of section 104N, the amount of a company's total expenditure on workers for an accounting period is the sum of—

(a) the relevant portion of the company's staffing costs for the period (see subsection (2)), and

(b) if the company is a member of a group and has incurred expenditure on any externally provided workers, the relevant portion of any staffing costs for the period incurred by another member of the group (the “relevant group company”) in providing any of those workers for the company (see subsection (3)).

(2) The relevant portion of the company's staffing costs for an accounting period is the amount of those costs that—

(a) are paid to, or in respect of, directors or employees who are directly and actively engaged in relevant research and development (whether they are wholly or partly so engaged), and

(b) form part of the total amount of the company's PAYE and NIC liabilities for the accounting period (see section 104Q).

(3) The relevant portion of any staffing costs for an accounting period incurred by a relevant group company in providing externally provided workers for the company is the sum of the amounts to be determined in the case of each of those workers as follows—

• Step 1 Calculate the amount of expenditure that—

  (a)

  has been incurred by the relevant group company in providing the externally provided worker for the company,

  (b)

  has been incurred on staffing costs, and

  (c)

  forms part of the total amount of the relevant group company's PAYE and NIC liabilities for the accounting period (see section 104Q).

• Step 2 Calculate the percentage (the “appropriate percentage”) given by—

  

  where—

  R is the amount of the company's qualifying expenditure on the externally provided worker that has been taken into account in calculating the amount of the company's qualifying R&D expenditure for the period, and

  T is the total amount of the company's qualifying expenditure on the externally provided worker.

• Step 3 The amount to be determined in the case of the externally provided worker is the appropriate percentage of the amount given by step 1.]

Textual Amendments

F1 Pt. 3 Ch. 6A inserted (with effect in accordance with Sch. 15 para. 27 of the amending Act) by Finance Act 2013 (c. 29), Sch. 15 para. 1