What are the SEIS Benefits for Businesses?
The aim of SEIS is to help you raise seed funds to grow your company. It does this be offering significant tax reliefs to investors.
What are the SEIS Rules for Businesses?
Your company can only receive a maximum of £150,000 through SEIS investments in its lifetime.
Your company must not have more than £200,000 of gross assets at the time that the shares are issued.
Your company must not have been trading for more than 2 years.
Your company must have fewer than 25 full-time equivalent employees.
You can find out more information on whether your company is SEIS eligible here.
What’s the difference between EIS and SEIS?
The two government tax relief schemes are similar in their aim of encouraging investment into early-stage companies, but the main difference between the Enterprise Investment Scheme (EIS) and the Seed Enterprise Investment Scheme (SEIS) is that SEIS is focused on much earlier-staged companies than EIS.
Companies can raise a maximum of £150,000 under SEIS, whereas a company can raise up to £5 million under EIS. You can find out more about the EIS in our guide here.
How to Claim SEIS Tax Relief
We’ve streamlined the tax documentation process for investors on Seedrs. Your tax certificates are digitally stored in your Seedrs account, where you can easily download electronically when submitting your tax return.
You can claim for relief in the current tax year by letting HMRC know, who will then either change your PAYE code or make an adjustment on your Self Assessment on account that’s due. You can find out more about this process here.
Claims for losses and for relief for those losses must be made through the tax return and the time limit is the following 31 January, one year after the end of the tax year in which the loss occurred. This is 12 months after the deadline for submitting the tax return for that year.
Seedrs has partnered with SimpleTax to offer Seedrs investors online tax returns at 50% off the regular price, at only £18 using discount code SEEDRS18.
Alternatively, just pass on the relevant details to your tax advisor. Please note that Seedrs is not authorised to give tax advice.
It’s also easy on Seedrs to see which companies qualify for investment under the SEIS – just look for the SEIS badge on the Investment Opportunities pages on Seedrs.
We hope that you found this overview useful, but tax relief is a complicated subject and what applies to you will depend on your individual circumstances, so please be sure to get independent tax advice.