Commentary

D1.409A Externally provided workers

Corporate tax
Corporate tax | Commentary

D1.409A Externally provided workers

Corporate tax | Commentary

D1.409A Externally provided workers

Expenditure on externally provided workers may qualify for SME or large company R&D tax relief1. 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:

  1.  

    (a)     he is an individual

  2.  

    (b)     he is not a director or employee of the company

  3.  

    (c)     he personally provides, or is under an obligation personally to provide, services to the company

  4.  

    (d)     he 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

  5.  

    (e)     his services are supplied to the company by or through the staff provider (whether or not he is a director or employee of the staff provider or of any other person)

  6.  

    (f)     he provides, or is under an obligation to provide, those services personally to the company under the terms of a contract between him and a person other than the company (the staff controller), and

  7.  

    (g)     the

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