What can be included in my Grant Funding project costs?

Grant Funding Project Costs – What can be included?

When it comes to Grant Funding Project costs, a project budget is built up around the work required. Cost categories include:

• labour
• overhead
• material
• capital
• usage
• travel and subsistence
• subcontract, and;
• others.

Labour cost is based on employee PAYE salary and effort required. For a company such as a start-up that doesn’t operate PAYE there is a standard rate that can be applied.

Overhead cost is associated with labour effort, with a standard 20% applied. There is also the option to calculate your own business overhead rate based on your accounts.

Materials covers anything that is consumable required for the project and whilst capital usage covers the use of large pieces of equipment needed. Upfront capital expenditure is not an eligible cost, only the depreciation element can be funded.

Subcontract cost needs to be justified by activity and subcontractor value for money.

Travel and subsistence costs typically cover project meetings and dissemination activities.

Finally, other costs covers non-defined cost and includes such things as patenting or workshop hire.

What Grant Funding Project costs are ineligible?

Funding is designed to support R&D therefore sales and marketing spend is not an eligible activity. In addition, labour should be based on PAYE + NI + pension and not include any bonus or increase in pay scale. For Innovate UK the majority, if not all, spend should occur in the UK. Spending internationally is not advisable.

How TBAT can help

The project budget must meet eligibility criteria and be suitable for the development described within the application. All funding applications are assessed for value for money so artificially inflating a budget can mean applicants are caught out during assessment and risk losing out. Conversely, restricting a budget can present difficulties when running a project if there are no funds to complete agreed work.

As part of working with TBAT, we help clients form a realistic project plan and budget, considering all possible project elements, to meet the needs of the project which also presents value for money to the funding body. TBAT also help clients understand what stage of development their project is at to make sure the level of grant funding requested is accurate – contact us to arrange a call.