Section 1131 | Qualifying expenditure on externally provided workers: other cases

(1)This section applies if—

(a)a company makes a staff provision payment,

(b)the company, the staff provider and (if different) the staff controller (or staff controllers) are not all connected, and^F1

(c)no election is made under section 1130.

(2)The company's qualifying expenditure on externally provided workers is 65% of so much of the staff provision payment as is attributable to qualifying earnings of externally provided workers.^F2

(3)In subsection (2) the reference to the staff provision payment is to that payment before any deduction is made from the payment under—^F3

(a)section 61S of ITEPA 2003,^F3

(b)regulation 19 of the Social Security Contributions (Intermediaries) Regulations 2000, or^F3

(c)regulation 19 of the Social Security Contributions (Intermediaries) (Northern Ireland) Regulations 2000.^F3

(4)Any apportionment of expenditure of the company necessary for the purposes of this section is to be made on a just and reasonable basis.^F4