This is an introductory post for preparing a budget on any Horizon 2020 proposal. Basic terminology is explained and templates are provided below.
A Horizon2020 budget distinguishes between 4 basic categories of costs:
- direct personnel costs
- subcontracting costs
- other direct costs
- indirect costs (anything like utilities, rent, phone bills etc.)
In order to be eligible the project costs must be:
- incurred by the beneficiary
- incurred in connection with the action
- incurred during the project duration
- identifiable & verifiable in the beneficiary’s accounts compliant with national law
- reasonable, justified, in accordance with sound financial management (economy & efficiency) indicated in the budget
If you participate in a research project, the EC reimburses 100% of your eligible direct costs. In an innovation project, you get 70% if you belong to a “for-profit” organisation (e.g. a company of any size), and 100% of your eligible direct costs if you belong to a “not-for-profit” organisation (e.g. one of the Swiss universities).
See also our separate factsheet “Horizon 2020 Project Types”.
The EC reimburses your indirect costs in the form of a 25% flat rate of your eligible direct costs.