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PART TWO U.K. COMMON PROVISIONS APPLICABLE TO THE ESI FUNDS

TITLE VIIU.K. FINANCIAL SUPPORT FROM THE ESI FUNDS

CHAPTER III U.K. Eligibility of expenditure and durability

[F1Article 68b U.K. Flat-rate financing for costs other than staff costs

1. A flat rate of up to 40 % of eligible direct staff costs may be used in order to cover the remaining eligible costs of an operation without a requirement for the Member State to execute any calculation to determine the applicable rate.

For operations supported by the ESF, the ERDF or the EAFRD, salaries and allowances paid to participants shall be considered additional eligible costs not included in the flat rate.

2. The flat rate referred to in paragraph 1 shall not be applied to staff costs calculated on the basis of a flat rate.]