H2020 Budget Preparation

This is an introductory post for preparing a budget on any Horizon 2020 proposal. Basic terminology is explained and templates are provided below.

Cost Categories

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.)

Direct project costs should be calculated as actual costs (some exeption exist)

Indirect costs in relation to your project (overhead) will be covered by a 25% flat-rate of the eligible direct costs. 

 

Cost Eligibility

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

Reimbursement Rates

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.

Attached Files