Claiming R&D Tax Relief for Externally Provided Workers

Externally provided workers (EPWs) contribute significantly to Research and Development (R&D) projects. Agencies or subcontractors supply these individuals, and they work under your company’s control on qualifying R&D activities. Businesses can claim the cost of EPWs for R&D tax relief in the UK when their work directly resolves scientific or technological uncertainties.

Eligible Costs for Externally Provided Workers

Direct Involvement in R&D

The cost of EPWs qualifies when workers directly engage in R&D tasks, focusing on overcoming scientific or technological challenges. Only those working under your company’s supervision are eligible, ensuring their contribution is integral to the R&D process.

Proportionate Costs

If externally provided workers split their time between R&D and other duties, only the R&D-related costs can be claimed. Accurate documentation, such as detailed timesheets, is essential. This practice ensures correct apportionment of the cost of EPWs, increasing the eligible cost for R&D tax relief.

Excluded Costs

Businesses must claim expenses that directly support innovation, as only direct contributions to R&D qualify. Costs related to administration, marketing, or routine tasks are excluded.

How Apex Accountants Can Assist

Apex Accountants specialise in guiding businesses through R&D tax relief claims. Our expert team helps you:

Identify Eligible EPWs

We determine which externally provided workers qualify for relief and ensure your claim includes all eligible expenses.

Accurate Cost Allocation

We help you correctly apportion the cost of EPWs, ensuring you claim only relevant R&D expenses and maximise your eligible cost for R&D tax relief.

Comprehensive Documentation

We advise on maintaining precise records. Contracts, timesheets, and project reports are essential to support your claim.

Don’t miss out on claiming the full eligible cost for R&D tax relief. Let Apex Accountants help you include all qualifying costs for EPW. Contact us today to speak with our R&D tax experts. Start claiming your R&D tax credits now and fully support your innovation.