How to transfer costs in H2020 project – a quick guide

You worked hard to prepare your successful proposal, including a lot of time on the budget to ensure the project is financially feasible.

After six months without problems you suddenly discover that your external support in prototyping included as “other direct costs” will cost 30% more than expected. Unfortunately, you didn’t know this during the budget preparation stage.

Is covering this amount with other resources your only option?

No, it’s not!

Check if you have savings in other budget categories, for example personnel costs. If so, you’re in luck. The SME Instrument budget is in principle flexible. The rules allow the transfer of money between budget categories. Just remember that the total budget and the maximum grant amount cannot be increased by the transfer.

How to transfer costs?

If you plan to transfer budget between categories, you should always ask your EC Project Officer if an amendment to the Grant Agreement is needed. Normally, if the amount to transfer is not large, beneficiaries are asked to justify it in the periodic report. For large amounts you might be asked for a GA amendment.

Budget transfers options  
From personnel to other direct costs:  Allowed, consultation with the EC recommended
From other direct costs to personnel:  Allowed, consultation with the EC recommended
From subcontracting to personnel costs:  Allowed, consultation with the EC recommended
From personnel costs to subcontracting:  Allowed but be careful! Increasing subcontracting is very sensitive.
Always ask your EC Project Officer and be prepared for refusal
From subcontracting to other direct costs:  Allowed, consultation with the EC recommended
From other direct costs to subcontracting:  Allowed but be careful! Increasing subcontracting is very sensitive.
Always ask your EC Project Officer and be prepared for refusal

If you have an H2020 project and want to know how to deal with costs transfer, contact us at hello@getpolite.eu. We will help you get it right.

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