8. Ineligible Expenditure
Applicants should include all project costs, including ineligible costs in applications and claims distinguishing clearly between the two! This list is intended as a point of easy reference. Definitive guidance is to be found in earlier sections of this document.
8.1 Financial and Other Charges and Legal Expenses
Bank charges on accounts.
Costs of guarantees provided by a bank or other financial institution.
Financial charges.
Debit interest (other than expenditure on interest subsidies to reduce the cost of borrowing for businesses under an approved State Aid scheme), charges for financial transactions, foreign exchange commissions and losses, and other purely financial expenses are not eligible for co-financing.
Service charges - arising on leases and hire purchase arrangements.
Costs resulting from the deferral of payments to creditors.
Costs involved in winding up a company.
Bad debts.
Fines, financial penalties and expenses of litigation.
Legal fees for advice, notary fees and the costs of technical or financial expertise.
8.2 Recoverable VAT
Recoverable VAT is not eligible whether or not the applicant elects to recover.
VAT does not constitute eligible expenditure except where it is genuinely and definitively borne by the final beneficiary. VAT which is recoverable, by whatever means, cannot be considered eligible, even if it is not actually recovered by the final beneficiary or individual recipient. The public or private status of the final beneficiary or the individual recipient is not taken into account for the determination whether VAT constitutes eligible expenditure in application of the provisions of this rule.
It is recognised that some final beneficiaries are unable to recover VAT. Non-recoverable VAT can be claimed as an eligible cost provided their claim is substantiated by appropriate evidence from the organisations auditors or accountants.
8.3 Staff Related Costs
- Staff costs that are not directly attributable to project delivery
- Training that is mandatory under statutory provision
- Redundancy payments
- Payments for unfunded pensions
- Maternity or sick pay
8.4 Other Ineligible Costs
- Expenditure defrayed outwith the eligible programme period, including site acquisition
- Related to research or studies carried out in respect of the project prior to the official project start date
- Volunteer costs - see eligible in-kind contribution costs
- Gifts and competition prizes
- Repairs and maintenance unless covered by the eligible cost description
- CCTV for town centres and / or as a stand-alone initiative
- Compensation for loss of office
- Costs of works being carried out as a statutory requirement.