Eligibility
UK SME eligibility and subsidy control rules for Innovate UK grants
Company size definitions, subsidy allowances and group structures. The eligibility issues that surface late in an application, and how to check yours early.
The basics everyone knows
Most Innovate UK competitions require your organisation to be based in the UK, or to have a UK establishment carrying out the project work, and to be intending to exploit the results from the UK.
Registration on the Innovation Funding Service needs to be completed well before the deadline, along with confirming your organisation's details, so leave time for this rather than treating it as a same-day task.
Company size definitions matter
Whether you are classed as a micro, small, medium or large enterprise depends on staff headcount, turnover and balance sheet total, and this classification directly affects the intervention rate you can claim.
Company size is not judged on your own figures alone. Linked and partner enterprises, including significant shareholders and parent or subsidiary companies, can be brought into the calculation and change your classification.
The subsidy control rules
Grants awarded under the UK's post-EU subsidy control regime are subject to allowances and thresholds designed to prevent excessive distortion of competition. Most Innovate UK grants are awarded under specific streamlined routes with defined limits per project and per organisation.
If your organisation has already received other public subsidies, disclose them accurately at application stage. Innovate UK will check cumulative subsidy received against the applicable threshold, and an inaccurate declaration can put an offer at risk.
Group structures and connected businesses
Where a business sits within a wider group, or shares directors, ownership or significant commercial dependence with another company, that relationship needs to be understood and, where relevant, declared.
This is a common blocker for spinouts and recently restructured businesses. If you are unsure whether a connected entity affects your size classification or subsidy position, resolve it with Innovate UK guidance before submitting, not after an offer is made.
Ready to turn this into a funded proposal?
Book a free 30-minute consultation with a senior grant consultant. We will check your eligibility, match you to the right program, and map out your submission timeline.
Learn more about our approach