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Can pension contributions be included in an R&D tax credit claim?

Joanne Chance
Senior Tax Manager
(Last updated on )

Employer pension contributions are classed as qualifying expenditure for the purposes of a research and development (R&D) tax credit claim. As long as the staff member is involved in your R&D project, you can include their employer pension contributions in your claim.

For staff undertaking R&D activities, the following costs can be included in an R&D tax credit claim: salaries including bonuses, employer’s National Insurance contributions, employer pension contributions, and some reimbursed travel expenses. To be eligible for the R&D claim, staff costs must have been paid within nine months of the end of the relevant accounting period.

For R&D tax credit claims, eligible pension contributions include contributions paid by your company to a pension fund operated for the benefit of employees of your company. The pension fund, scheme, or other arrangement can be established or maintained in the UK or elsewhere.

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