Expenditure on externally provided workers may qualify for each of the R&D tax reliefs under both the pre- and post-April 2024 schemes (see D1.401)1. Externally provided workers are generally workers who are not employees of the company carrying on the R&D, but are instead paid through some intermediary, such as an agency.
Definition of externally provided workers
A person is an externally provided worker in relation to a company if each of the following conditions are satisfied2:
- Ìý
(a)ÌýÌýÌýÌý the worker is an individual
- Ìý
(b)ÌýÌýÌýÌý the worker is not a director or employee of the company
- Ìý
(c)ÌýÌýÌýÌý the worker personally provides, or is under an obligation personally to provide, services to the company
- Ìý
(d)ÌýÌýÌýÌý the worker is subject to (or to the right of) supervision, direction or control by the company as to the manner in which those services are provided
- Ìý
(e)ÌýÌýÌýÌý the worker's services are supplied to the company by or through the staff provider (whether or not the worker is a director or employee
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Web page updated on 17 Mar 2025 17:42