-

Articles and Insights from the GA Team and Network

SEIS application made easy

SEIS application made easy

NEWS FLASH ALERTS:

As of Jan’2018, All SEIS applications now need to nominate the actual investors with their application.

This is avoid the speculative applications and to reduce HMRC workload. We recommend you find a legitimate ‘potential’ named,(UK tax paying) investor. As to whether this actual investor completes the investment… that maybe swapped for an alternative investor. This is unproven, but could be worth the risk as the pressure is on the brand to be ready for SEIS investment, rather than whether the investor is eligible. This is just our opinion. You take this risk in your own application. Good Luck…

>>> It takes up to four weeks to successfully receive advanced authority that you’re eligible for SEIS<<<

HEADLINE reasons to register:

  1. It gives your investor tax credit against their next HMRC tax payment of up to £50,000.
  2. Capital gains free after 3 years for your investors
  3. You look far more professional to an investor…

 

Here’s a video we’ve made to assist you:

 

Myth busters…

  1. Myth – It costs money to apply? It doesn’t cost anything to send your application to HMRC.
  2. Myth – Complicated, you need to pay for an accountant or lawyer? – No you don’t, it isn’t complicated, it just looks complicated. Read the rest of this and find out why!
  3. Myth – you don’t have all the legal company documents to apply? You don’t need all the legal documents for the basic application. So, chill out and read the rest of this…

KEY Stuff to know:

  1. For SEIS, you can raise up to £150,000 from investors, but maximum total shareholding from investors must not exceed 30% of the business.
  2. Maximum investment, per individual investor, in any SEIS businesses being invested in one tax year, is £100,000
  3. Investors have to be a UK taxpayer.
  4. Your business has to be have been trading more 4 months.
  5. Your business has to have been trading less than 2 years. That’s trading, not the date you formed your company. If you formed your company over two years ago, and but started to trade less than two years, then you are still eligible. Equally, if you’ve been trading more than two years and registered your company less than two years, you’re not eligible. Comprende?
  6. Must be a UK registered company. But you don’t have to be a UK citizen/s.
  7. There must not be a parent company and be you’ve got to be completely independent. – and not stock market listed (dream on!)
  8. If you sell food and drink products – you are in a qualifying trade (if you’re doing something else why are you reading this?)
  9. You must not employ more than 25 people.
  10. Your assets (excluding the SEIS investment you are looking to raise) must be less than £200,000
  11. If you don’t qualify to the above – And don’t go away. You are very likely to be eligible for EIS status. This is the big brother of SEIS and is still a good deal for investors. The process is the same for EIS. So use the same form.

 

Still up for this?

Okay… here we go:

 

Your next step is to apply for SEIS Advance Assurance…

Here’s the link for the application form:

https://public-online.hmrc.gov.uk/lc/content/xfaforms/profiles/forms.html?contentRoot=repository:///Applications/CorporationTax/1.0/EIS-SEIS(AA)&template=EIS-SEIS(AA).xdp

 

When it asks you for “The money raised by the shares will be used for?”

(copy and paste this)

“To access a mentoring and coaching service to help our business; improve our knowledge of the market place; develop our existing products; research and develop new products; improve our skills at presenting to potential customers and find new customers.”

 

Here’s the address where you send your application, but it’s quicker to email it to: enterprise.centre@hmrc.gsi.gov.uk

Small Company Enterprise Centre (SCEC)

Medvale House

Mote Road

Maidstone

Kent

ME6 15AF

Helpline Telephone: 03000 588907

 

More information:

http://www.hmrc.gov.uk/manuals/vcmmanual/VCM30000.htm

 

That’s it, go for it.

6 Responses to SEIS application made easy

  1. Hi there,
    This was really helpful. I have two more questions I would really appreciate your help on.

    On the online application for SEIS Advance Assurance, it asks for my tax reference # Do you know where I can find this?
    It asks whether my affairs have been dealt with by SCEC – If I choose No it asks for the local HMRC office – I have not been in contact with them yet (why would I)

    Can you possibly help me with these queries on the application

    Many thanks

    Nick

    • Hi Nick, your tax reference number should be available from your local HMRC office. If your business is brand new, they might not have this straight away. Bureaucrats eh? Hope you’re successful?

Leave a reply

Grocery Accelerator Ltd, Company number 08831331. Registered office: Sustainable Bankside 105 Sumner St, London SE1 9HZ - 020 7294 7692 - Website by Liam Morgan