If your business has received Innovate UK funding, submitting an Independent Accountant’s Report (IAR) is often a key step in drawing down grant funds. While the process is straightforward in principle, small errors in your records or claim can quickly lead to questions, rework and payment delays.

Below are four of the most common issues that can delay an Innovate UK grant audit, along with practical steps to help you avoid them and keep your claim moving.

Planning ahead matters because Innovate UK expects claimed costs to be eligible, well documented and supported by the terms of your grant funding agreement. Missing evidence, timing errors and calculation issues can all slow down approval and delay payment.

Why do Innovate UK grant audits get delayed?

An Innovate UK grant audit is an independent review of the costs included in your claim. The auditor checks whether expenditure is supported, correctly calculated and in line with Innovate UK guidance and your grant conditions. If anything is unclear or unsupported, your claim may need to be revised before payment can be processed.

1. Missing or incomplete timesheet records

Timesheets are one of the first things an auditor will review when checking labour costs. If records are incomplete, inconsistent or missing altogether, it becomes much harder to confirm that the hours claimed relate directly to the funded project. This can trigger follow-up questions and slow down sign-off.

How to avoid it: Keep timesheets up to date throughout the project, make sure they clearly show time spent on eligible project activity, and check they agree with payroll records before the claim is submitted.

2. Costs claimed outside the approved project period

Innovate UK claims must align with the dates set out in your grant funding agreement. If expenditure falls before the project start date or after the relevant claim period, it may be treated as ineligible. Even where the cost itself is valid, poor timing can hold up the audit while the claim is reviewed and corrected.

How to avoid it: Review project dates carefully before each submission and make sure all claimed expenditure was incurred within the correct period and matches the relevant claim window. Innovate UK guidance states that costs must fall within the approved project timeframe and be supported by the grant conditions.

3. Incorrect treatment of VAT

VAT is a common area of confusion in grant claims. If recoverable VAT is included in error, the claim may need to be adjusted before the audit can be completed. This creates unnecessary back-and-forth and can delay the release of funds.

How to avoid it: Check how VAT should be treated under your grant and confirm whether it is recoverable before including any expense in your claim. Where VAT treatment is unclear, resolve it before the audit starts rather than during the review.

4. Missing invoices or proof of payment

Auditors need to see a clear audit trail behind the figures in your claim. If invoices, receipts or proof of payment cannot be produced promptly, the cost may be questioned or excluded until supporting evidence is provided. This is one of the most common reasons for avoidable delay.

How to avoid it: Maintain a complete audit trail from the outset, including invoices, receipts, contracts, payroll records and evidence of payment. Having this information ready before the audit begins can make the process much more efficient.

In most cases, payment delays are not caused by the audit itself, but by gaps in the supporting records behind the claim. The earlier these issues are identified, the easier it is to correct them before they affect your timeline. UK Research and Innovation guidance also makes clear that an IAR or statement of expenditure is required with final claims, depending on the level of eligible project costs.

How Shaw Gibbs can help

Our specialist audit and advisory team supports businesses with Independent Accountant’s Reports for Innovate UK claims. We help clients prepare the right evidence, identify issues early and complete the process as efficiently as possible.

Because we understand the detailed requirements of Innovate UK and UK Research and Innovation, we can help reduce avoidable delays, resolve compliance queries early and keep your claim on track.

Whether this is your first Innovate UK award or part of a wider funding programme, we can guide you through the audit process with confidence.

Please contact Leanne Humphreys in Sutton, or Malik Salim in Oxford if you would like to discuss your requirements in more detail.