Common Claim Mistakes - Calc Logo New

7 Common Innovate UK Costing Errors That Delay or Reduce Grant Claims

Incorrect daily rate calculations. This should be total annual payroll costs divided by total productive days (260 – 8 public holidays – company’s annual leave entitlement).¹
Employees not on PAYE. Except for micro-companies, all employees claimed in Labour should be on PAYE.¹
Claiming Labour costs using budgeted rates. The actual costs incurred need to be the same or higher.²
Overclaiming employees Labour costs. The daily rate * days worked can’t be claimed at more than actual costs incurred for the employees in the project.²
Capital items claimed as Material costs. Capital items, including laptops, cannot be claimed under Materials.¹
Incorrect Capital Usage depreciation. The depreciation needs to be over a minimum of 1 year, and the depreciation rate needs to agree to the depreciation policy in the Financial Statements.¹
Overclaiming across multiple grants. Labour costs paid or invoice costs incurred cannot be claimed above the total cost across grant funded projects.²

¹https://www.ukri.org/councils/innovate-uk/guidance-for-applicants/costs-we-fund/costs-guidance-for-non-academic-organisations/

²Annex 7 – Template Independent Reasonable Assurance Report (“Accountant’s Report”)

Insufficient timesheet format, per term 9.6 of most Grant Offer Letters, the timesheets need to include:

– the date and number of hours worked per day
– start and finish time
– a brief description of the work completed and associated work packages
– the name of the staff member completing the task
– actual rate of labour

Check your Grant Offer Letter to see if these apply to you.

Subcontracting Costs

All subcontractors need to be approved either by being named in the project application or in Project Change Requests (‘Approve a new subcontractor’)

Travel costs

The travel costs need to be paid/reimbursed to the employees who incurred them.

Other Costs

The categories allowable for Other Costs are:

– Workshop or laboratory usage costs

– Training costs

– Preparation of technical reports

– Market Assessment

– Licensing in new technologies

– Patent filing costs for new intellectual property (IP)

– Regulatory compliance

(https://www.ukri.org/councils/innovate-uk/guidance-for-applicants/costs-we-fund/costs-guidance-for-non-academic-organisations/)

Other Costs not in these categories are ineligible unless explicit approval has been received from UKRI.

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