Consulting is an activity based on a service, providing expertise to an organisation. Often, there is a reference to the word ‘service’ in tender documentation which indicates the consulting element. The project, including required outputs and timeline, is defined and set by the client. In consulting activity, the intellectual property rights are often retained by the contracting organisation rather than the academic or LSE. VAT is applicable to UK/EU consulting activity.
Research grants provide funding to undertake research in a particular area or topic without a pre-determined output. Costs are based on actual expenditure, requiring financial records, and intellectual property rights are retained by the academic or LSE.