Corporation Tax Act 2009 section 1128

"Externally provided worker"

Section 1128 defines what constitutes an "externally provided worker" for the purposes of the R&D tax relief rules, by setting out seven conditions that must all be satisfied.

• The worker must be an individual who is neither a director nor an employee of the company, but who personally provides (or is obliged to provide) services to the company under its supervision, direction or control.
• The worker's services must be supplied to the company through a staff provider, and the worker must be contracted to provide those services under an agreement with a third party known as the "staff controller" rather than directly with the company.
• The services provided must not amount to activities that the company has contracted out — they must be genuinely integrated into the company's own R&D work.
• The term "staff controller" introduced here carries through to the related provisions in sections 1129 to 1132A, which deal with qualifying expenditure on externally provided workers.