SEIS - Seed Enterprise Investment Scheme
Discussion
Hi all,
Has anyone here had any experience of this investment scheme?
TL:DR
I'm going invest some cash into my business and I want to know how I'll get the 50% investment back via my tax.
Full Story here ->
I am about to register for my company for Advanced Assurance as part of this scheme. My business meets all the criteria so I don't anticipate too much difficulty.
For those that have used it, can you submit a tax return shortly after investment or do I need to wait until nearer the deadline date?
Then after submitting the tax return with the necessary SEIS documentation how did you receive your tax relief and how long did it take to receive it?
If I invest in this tax year, do I need to wait until the next tax year to claim?
I'm in PAYE so will it be an adjustment to my tax code so I pay less each month or will I get a cheque from HMRC re-imbursing me for 50% of my investment?
Cheers,
Pete
Has anyone here had any experience of this investment scheme?
TL:DR
I'm going invest some cash into my business and I want to know how I'll get the 50% investment back via my tax.
Full Story here ->
I am about to register for my company for Advanced Assurance as part of this scheme. My business meets all the criteria so I don't anticipate too much difficulty.
For those that have used it, can you submit a tax return shortly after investment or do I need to wait until nearer the deadline date?
Then after submitting the tax return with the necessary SEIS documentation how did you receive your tax relief and how long did it take to receive it?
If I invest in this tax year, do I need to wait until the next tax year to claim?
I'm in PAYE so will it be an adjustment to my tax code so I pay less each month or will I get a cheque from HMRC re-imbursing me for 50% of my investment?
Cheers,
Pete
Are you an existing Director of the company, and if so are you paid by the company?
The rules around SEIS investment and tax relief are complex if you are an existing Director (or indeed become a Director as part of the investment), and I'd recommend getting professional advice to steer you through them.
They can also advise you on how to process the personal tax relief and the rules around it.
The rules around SEIS investment and tax relief are complex if you are an existing Director (or indeed become a Director as part of the investment), and I'd recommend getting professional advice to steer you through them.
They can also advise you on how to process the personal tax relief and the rules around it.
jeremyc said:
Are you an existing Director of the company, and if so are you paid by the company?
The rules around SEIS investment and tax relief are complex if you are an existing Director (or indeed become a Director as part of the investment), and I'd recommend getting professional advice to steer you through them.
They can also advise you on how to process the personal tax relief and the rules around it.
Yep, I’m the only director. Currently unpaid and injecting the cash into the company myself. The rules around SEIS investment and tax relief are complex if you are an existing Director (or indeed become a Director as part of the investment), and I'd recommend getting professional advice to steer you through them.
They can also advise you on how to process the personal tax relief and the rules around it.
Would you be able to recommend an agent?
I was planning on doing the application myself so I could claim 50% tax relief on my investment. I need to put in a decent chunk soon to make it through the next phase and getting this relief will make that a lot less painful.
Hi Pete,
If you already own the company then SEIS or EIS isn’t relevant sadly as the cap on share ownership is 30%. I am
assuming you own it as you said ‘my company’ in your original post.
For full disclosure I am an accountant & petrolhead @ www.nextlevel business.co.uk and we deal with these schemes a lot.
All the criteria are set out on the page below. I hope that helps.
https://nextlevelbusiness.co.uk/seis-scheme-for-bu...
If you already own the company then SEIS or EIS isn’t relevant sadly as the cap on share ownership is 30%. I am
assuming you own it as you said ‘my company’ in your original post.
For full disclosure I am an accountant & petrolhead @ www.nextlevel business.co.uk and we deal with these schemes a lot.
All the criteria are set out on the page below. I hope that helps.
https://nextlevelbusiness.co.uk/seis-scheme-for-bu...
Spinner20 said:
Hi Pete,
If you already own the company then SEIS or EIS isn’t relevant sadly as the cap on share ownership is 30%. I am
assuming you own it as you said ‘my company’ in your original post.
For full disclosure I am an accountant & petrolhead @ www.nextlevel business.co.uk and we deal with these schemes a lot.
All the criteria are set out on the page below. I hope that helps.
https://nextlevelbusiness.co.uk/seis-scheme-for-bu...
Thanks Spinner, I hadn’t seen that restriction. Thanks for bringing it to my attention If you already own the company then SEIS or EIS isn’t relevant sadly as the cap on share ownership is 30%. I am
assuming you own it as you said ‘my company’ in your original post.
For full disclosure I am an accountant & petrolhead @ www.nextlevel business.co.uk and we deal with these schemes a lot.
All the criteria are set out on the page below. I hope that helps.
https://nextlevelbusiness.co.uk/seis-scheme-for-bu...
I’ll go ahead with it the application anyway as it makes the company more attractive to other investors. I only need £4K to finance the next stage so looks like I’ll be taking out a personal loan. Then I’ll be looking at Patent Box status and hopefully generating some revenue.
Pete
Spinner20 said:
Hi Pete,
If you already own the company then SEIS or EIS isn’t relevant sadly as the cap on share ownership is 30%. I am
assuming you own it as you said ‘my company’ in your original post.
For full disclosure I am an accountant & petrolhead @ www.nextlevel business.co.uk and we deal with these schemes a lot.
All the criteria are set out on the page below. I hope that helps.
https://nextlevelbusiness.co.uk/seis-scheme-for-bu...
Youve already got the correct info here but here’s a link worth reading that I point most of my clients to as a summary guide to S/EIS. If you already own the company then SEIS or EIS isn’t relevant sadly as the cap on share ownership is 30%. I am
assuming you own it as you said ‘my company’ in your original post.
For full disclosure I am an accountant & petrolhead @ www.nextlevel business.co.uk and we deal with these schemes a lot.
All the criteria are set out on the page below. I hope that helps.
https://nextlevelbusiness.co.uk/seis-scheme-for-bu...
As suggested it’s very very complex.
PS - I’m not an accountant but help founders of startup/early-stage businesses raise equity investment via angel investors and VC funds, all utilising S/EIS.
https://seedlegals.com/resources/seis/
Hi Stub,
Thanks!
It is frustrating how little support there is for startups, I’ve been hunting for support for almost a year now with very little success so I’ve decided to take out a loan to fund it.
Being able to claim some tax relief would take some of the sting out of this. Pity.
Pete
Thanks!
It is frustrating how little support there is for startups, I’ve been hunting for support for almost a year now with very little success so I’ve decided to take out a loan to fund it.
Being able to claim some tax relief would take some of the sting out of this. Pity.
Pete
There is actually quite a lot of startup support across the UK but it is very regional and fragmented which most of the time means you are wading through mud... Hence why one of my businesses exists :-)
There’s also very little ‘free money’ but various grants do still exist and they’re often attached to accelerator or sector/regional support schemes.
Are you Scotland based? The startup ecosystems in Edinburgh and Glasgow are arguably better developed than most of the rest of the UK (excl London, Cambridge, Oxford), but if you’re outside there I’d guess they’re not great.
Feel free to PM me and happy to help/signpost if I can.
Edited to add - can you look at R&D tax credits???
There’s also very little ‘free money’ but various grants do still exist and they’re often attached to accelerator or sector/regional support schemes.
Are you Scotland based? The startup ecosystems in Edinburgh and Glasgow are arguably better developed than most of the rest of the UK (excl London, Cambridge, Oxford), but if you’re outside there I’d guess they’re not great.
Feel free to PM me and happy to help/signpost if I can.
Edited to add - can you look at R&D tax credits???
Edited by stub101 on Wednesday 19th May 20:51
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