How to calculate staff costs for UK R&D claims?

To calculate staff expenditure, work out how much time staff spent on qualifying R&D activities, and then multiply that by each of your employee’s gross earnings. If staff spent 30% of their time on qualifying projects, include 30% of their pay. 

Include salaries, bonuses, Class 1 NIC, pension contributions and training costs for staff directly involved in the eligible R&D work.

Keep records of your expenditure, like timesheets, PAYE records and contracts. If you use external staff or contractors (like EPWs), include up to 65% of their costs (or the pro rata equivalent), provided they are directly contributing to the R&D activity.