Corporation Tax Act 2009 section 1170

Staffing costs

Section 1170 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.

• Cash earnings (salaries, wages and other money payments) paid to directors or employees in connection with their employment qualify as staffing costs
• Reimbursed expenses paid to directors or employees in connection with their employment also qualify, but benefits in kind are specifically excluded
• Employer (secondary) Class 1 national insurance contributions paid by the company are included
• Company contributions to any pension fund — whether UK-based or overseas — set up to provide retirement benefits to directors or employees are included