This is general guidance. It does not apply to Innovate UK grants.
Costing your project
When writing your application, you should enter 100% of the value of your individual project costs. The percentage covered by UKRI is automatically calculated.
VAT and inflation
All included costs should be at current prices, inclusive of VAT and other taxes where applicable. Do not include inflation, this is applied with an automatic indexation calculation.
What costs you should include in each category
Costs are usually included under the following headings when writing your application.
Directly allocated
These costs are based on estimates rather than actual amounts. They are not directly auditable.
Some examples are:
- staff based on estimated time on the project
- research facilities
- estates
Directly incurred
These costs are based on actual rather than estimated amounts, usually tracked through the project using invoices or timesheets.
Some examples are:
- travel and subsistence
- equipment over £25,000
- consumables and equipment up to £25,000
- staff based on auditable payroll costs
- NHS research costs
Project partner costs
Project partners may be able to claim for minor costs, such as travel and subsistence. They must be fully justified in your application.
Caring costs
Additional caring costs may be eligible if they are directly related to the project, beyond that required to meet the normal contracted requirements of the job. Check with your organisation if they can be included.
Subcontractor costs
All costs that support the delivery of the subcontract are eligible and will usually be paid at 80% of the total cost.
Indirect costs
These include non-specific costs charged across all projects. They include the project’s share of centralised services in an organisation, for example, IT and human resources. They’re based on estimates that are not otherwise included as directly allocated costs.
Your organisation’s administration costs can usually go under this heading, for example:
- personnel
- finance
- library and departmental services
They should be shown as a single figure (£ total for the project) and do not need to be justified in your application.
Exceptions
Exceptions are only eligible if specified in the funding opportunity.
These are costs funded at 100% by UKRI, subject to actual expenditure incurred, or items that are outside full economic costing (FEC).
Keep a record of your spending
If you’re awarded funding, you’ll need to provide evidence of your project costs. It’s a good idea to keep copies of receipts, invoices and contracts.
Last updated: 19 May 2025