The value you can claim for staffing costs for work done on R&D projects depends on the way that the individual has been employed if, they are PAYE staff, externally provided workers or subcontractors.
PAYE employment costs
This includes:
- Bonuses
- Salaries
- Employer pension fund contributions
- Employer national insurance contributions
Externally provided workers
You can claim 65% of staff costs if the provider of the staff is not connected to your company.
R&D subcontractors
Subcontractors must conduct R&D work within the UK. Their work must contribute to a technological outcome to be included.
Subcontractor costs can be claimed under the SME scheme. They are excluded from the RDEC scheme.