Corporation Tax Act 2009 section 1123

"Staffing costs"

Section 1123 defines what counts as "staffing costs" for the purposes of the R&D tax relief rules in Part 13 of the Corporation Tax Act 2009.

• Staffing costs include money earnings (salaries, wages, etc.) paid to directors or employees because of their employment, plus reimbursed expenses (excluding benefits in kind)
• Employer secondary Class 1 national insurance contributions are included as staffing costs
• Compulsory social security contributions made under EEA or Swiss legislation for the benefit of directors or employees also qualify
• Contributions to any pension fund — whether UK-based or overseas — operated for the benefit of directors or employees are included