Identifying qualifying expenditures for an R&D tax credits claim can be a complex process. In this article, discover whether businesses are able to include their pension contributions in their R&D claim.
Can pensions be included in an R&D claim?
Yes, pension contributions made by employers can be considered as qualifying expenditure for an R&D tax credit claim, provided that the staff member was involved in the R&D project.
For the purpose of making R&D tax credit claims, eligible pension contributions refer to payments a company makes to a pension fund (in the UK or another country) that exclusively benefits its employees.
It’s becoming increasingly common to claim R&D tax credits against pension contributions as more businesses are committed to providing employer pension schemes under the pension auto-enrolment legislation. Companies are able to use their R&D tax credits to offset the auto-enrollment associated expenses.
Can other staff costs can be included in an R&D claim?
There are a number of staff costs that qualify for R&D tax credits, including wages and national insurance contributions. Read our related article to find out what staff costs can be included in your R&D tax credit claim: Can You Count Apprenticeship Costs as R&D Expenses?
How can Ayming help
With over 30 years’ experience, Ayming is the largest tax incentives advisor in Europe. Every year, we submit over 16,000 R&D tax claims worldwide, with our UK clients receiving over £600m in benefits.
Our experienced consultants work tirelessly to ensure your business receives the maximum benefit from your R&D claim. Don’t let valuable opportunities slip away – contact us to find out more about how we can assist you with your R&D tax credits claim.