Each funder will have its own rules on eligible and ineligible costs. For example the research councils will rarely allow the costs of standard computers, and some funding schemes will not allow costs of studentships or of research assistants. European Commission funding will not cover the cost of identifiable taxes including VAT and flight taxes. The Leverhulme Trust will generally pay for replacement teaching costs of the Principal Investigator but not his or her direct salary costs. Each funder will have its own rules on overheads. These are generally the same across all schemes for a particular funder, but not always.

When producing the application budget, Research Support Staff will advise on ineligible costs and in particular, the potential VAT liability will need to be identified, since these charges will be transferred from the project account to the general account for the Faculty or Research Centre, and effectively be paid from the project’s overheads. Therefore this will have to be specifically approved by the Dean or Centre Director before the application is submitted.