Do you require an Innovate UK Independent Accountants Report?

We can provide an Independent Accountants Report (IAR) for your business to help obtain a grant, like the Innovate UK grant.

Innovate UK is the UK’s national innovation agency. It is a public body funded by grant aid from the UK Government. Innovate UK supports business-led innovation in all sectors in the UK to help them develop their ideas by issuing grants to support with the costs.

Once your project has been approved, the next key step in securing your funding is to engage an Independent Accountant to produce the IAR.

In this article, we explain what an Independent Accountant’s Report (IAR) is, what a reasonableness check involves, and how we can support your Innovate UK grant as your Independent Accountant.

What is an Independent Accountant’s Report (IAR)?

Think of it as a financial checkpoint. Innovate UK want to be sure the money is being spent in the way you said it would be and an IAR is their way of verifying that.

It’s not a full statutory audit, but it does need to be carried out by a registered auditor. At A4G Audit, we’re fully registered and experienced in working with growing UK businesses who are securing grant funding.

The report includes several technical annexes (5, 6 and 7) and a Statement of Expenditure, which must be prepared and submitted accurately.

Who needs an IAR and when?

Most IARs are required at the end of your project, before the final part of the grant is released. Innovate UK will usually confirm this in your grant offer letter, but if you’re unsure, we can help you double-check.

In most cases, you only need one IAR per grant project, but there are exceptions, for example, longer or multi-phase projects may require more than one.

What does the IAR involve?

As your Independent Accountant, we will:

• Review your accounting records and correspondence
• Verify that the amounts claimed are reasonable and accurate
• Test overheads and confirm no double funding has occurred
• Ensure all figures exclude VAT and interest
• Confirm no profit margin has been built into the costs

We then prepare the report, complete annexes 5, 6 and 7, and submit the Statement of Expenditure. If we spot anything that needs changing or isn’t quite right, we’ll talk it through with you first.

How long does it take?

Once we’ve received everything we need, most IARs can be turned around within one to two weeks. If your records are clear and your project straightforward, we can often get it done sooner.

If time is tight, we’ll let you know exactly what we need upfront to avoid any delays.

Can your usual accountant do it?

Not necessarily. Innovate UK requires the IAR to be completed by a registered auditor listed on the official audit register. Many general accountancy firms, even those you’ve worked with for years, do not meet this requirement.

We’re registered with the ICAEW and appear on the official audit register. We also specialise in working with growing businesses and understand the importance of balancing compliance with practical support.

What sectors do we work with?

We’ve prepared IARs for:

• Software and tech companies
• Life sciences and medical innovators
• Manufacturers and engineering firms
• Green energy and sustainability projects

So whatever industry you’re in, we’ll likely have seen something similar before.

What happens if there’s an issue with my claim?

If we identify costs that don’t meet Innovate UK’s criteria, we’ll work with you to clarify, adjust or remove the ineligible expenses. Our goal is to get the report in a state where it can be approved without delay, and we’ll advise you on the best course of action if problems do arise.

Why choose A4G Audit for your IAR?

• Specialist experience with Innovate UK requirements
• Clear communication throughout the process
• A helpful team that understands the real-world pressures of project delivery
• Part of a wider advisory firm that supports growing businesses beyond the IAR, we understand your long-term goals and offer joined-up advice

Ready to get started? Get in touch with the A4G Audit team and we’ll guide you through it.

What does it cost?

Our fees are fixed and based on the size and complexity of your grant. We’re happy to give you a quote once we understand a bit more about your project.

Just complete the short form below and we’ll be in touch within 48 hours to provide you with your quote.

Complete the form below to receive your quote

If you have any questions, please call 01474 853 856.

Even if some of your costs don’t qualify for an Innovate UK grant, they may quality for enhanced tax relief under a Research and Development tax claim. Find out more about this valuable tax relief by reading our article on what qualifies and the reliefs available.