Podcasts

GF008 – Does your company qualify for SEIS / EIS?

Get Funded! podcast covering SEIS and EIS

Here in this edition of the Get Funded! podcast we cover the essential requirements related to your company and its eligibility for SEIS / EIS funding.

As you might expect for such a generous tax relief, it is not available to all companies – instead it is targeted at small – medium sized companies with the capacity for growth (along with a healthy dose of risk!).

The key company requirements for SEIS / EIS are as follows:

        • The company must be unquoted i.e. it must not be quoted on a recognised stock exchange. Note that the Alternative Investment Market (AIM) is okay for SEIS / EIS purposes as it is not counted by HMRC as a ‘recognised stock exchange’
        • The company must have a UK permanent establishment. Most companies will be incorporated in the UK so this isn’t normally an issue but this demonstrates that the rules are more flexible than some might appreciate – it could be an overseas company with a UK branch / permanent establishment and still qualify
        • For SEIS, the company must have gross assets of no more than £200,000 at the time of the issue of the shares – here we are concerned with total assets on the balance sheet only NOT net assets (ie after deducting liabilities). Where there are subsidiaries, these must be totalled up.
        • For EIS, the gross assets limit is £15m immediately before and £16m after the use.
        • For SEIS, the company must have fewer than 25 employees immediately before the relevant share issue
        • For EIS, the employee limit is 249.
        • The company must be carrying out a qualifying trade – the definition of what constitutes a ‘qualifying trade’ for SEIS / EIS purposes is deduced in reverse by reference to the ‘Excluded activities’ list – so if you’re not on it you should be okay! We’ll cover this in more detail in a future podcast as there are some potential traps here especially for software companies…
        • For SEIS, the company must not have received EIS or VCT monies.

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GF007: What percentage share capital can I own under SEIS / EIS?

Get Funded! podcast covering SEIS and EIS

This is a thorny subject that comes up time and time again:

How much of the share capital can I or my investors own under SEIS / EIS?

In this seventh episode of the Get Funded! podcast we cover the (dreaded) “substantial interest” test that basically says that you can’t hold more than 30% of the issued share capital and qualify for SEIS / EIS.

I say “dreaded” because it is not just you or your investor that you need to consider but also any “associates” too. “Associates” include spouses plus parents, children, grand-parents etc (basically blood relations up and down). Brothers and sisters are not counted as “associates”.

Many startup companies get tripped up by this rule so watch out for it!

This episode was brought to you by ip tax solutions – specialists in R&D tax credits

GF006 – SEIS | EIS: Get your share capital right!

Get Funded! podcast covering SEIS and EIS

In this episode of the Get Funded! podcast we cover:

Getting your share capital right!

Not every type of share is eligible under SEIS / EIS and given the attractive tax benefits offered to investors, this is little surprise. SEIS /EIS investors cannot receive shares that have preferential rights. They must be – what we like to call –

“Full fat, full risk ordinary shares”

We also cover a couple of pointers to watch out for if you are raising money alongside VCs to ensure that the SEIS / EIS investors don’t lose out and how to avoid losing the relief by accident in the future….

This podcast is brought to you by ip tax solutions | the innovation tax specialists

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GF005 Get Funded! SEIS – Make sure you have one of these!

Get funded!In this fifth episode of the Get Funded! podcast, we cover an essential – but frequently overlooked – step that you simply MUST get in place before you raise money under SEIS.

So essential, in fact, that without it, you could mess up the SEIS relief for your investors before you’ve even really got started!

We also cover the maximum amount that you can raise under SEIS being £150,000 and the importance of getting the order right if raising cash under EIS too i.e. SEIS then EIS and not the other way around.

There are changes afoot around the interaction of these reliefs and the “70%” rule but this merits a separate episode – coming soon….! (Subscribe below ;) )

GF004 – Get Funded! Podcast | SEIS | Get ready to slice the pie!

Get funded!In this 4th episode of the Get Funded! podcast we cover:

“Get ready to slice the pie!”

This show is all about the need to issue shares in return for a cash investment if it is to be eligible for SEIS or EIS under current rules.

We also cover what doesn’t qualify e.g. loans, and some tips around types of shares and nominal values of shares to help you get the SEIS share capital structure right from the outset.

Please subscribe and leave us a rating on iTunes – this will help this podcast get found by more entrepreneurs and help the UK get ahead in raising funding for exciting new startups!

GF003 – Get Funded! podcast – What are the key tax benefits of SEIS?

Get funded!In this 3rd episode of the Get Funded! podcast we explore the key tax benefits of the Seed Enterprise Investment Scheme (SEIS) including:

  • 50% income tax relief
  • potential for 14% capital gains tax shelter
  • IHT exemption after 2 years
  • CGT free sale after 3 years
  • Sideways income tax relief should the startup fail

All in all this can amount to up to 86.5% tax shelter for the investor so only 13.5% capital may be at risk.

GF002 – Why should SEIS matter to my startup?

Get funded!In Episode 2 of the Get Funded! podcast we cover:

  • why and how SEIS is becoming so popular?
  • why many business angels and seasoned investors will expect you to have considered SEIS?
  • an outline of the tax benefits that SEIS provides for investors
  • why you might be at a disadvantage pitching for investment without SEIS?

Leave us any comments or questions in the comments section.

GF001 Get Funded! – What is SEIS?

Get funded!We are thrilled to announce the launch of a new podcast: “Get Funded!”

A podcast that aims to share practical information and tips on the workings of the Seed Enterprise Investment Scheme (SEIS) and the Enterprise Investment Scheme (EIS) with entrepreneurs, CEOs and founders.

I am afraid that there is little in terms of bells and whistles in terms of the podcast production at this stage (maybe that’ll come later ;) ), as we are more concerned with getting the information and tips out there as quickly as possible and exploring whether this might be a more digestable medium than text….

Let us know your comments and thoughts.

In this first “Get Funded!” podcast we cover:

  • what is SEIS?
  • who benefits from SEIS?
  • which companies is SEIS aimed at?
  • why is SEIS necessary?

This first podcast is really just an initial primer – we will aim to keep them as short and as easy to digest as possible.

#003 Speakeasy – Effective Business Communication with Andrew Thorp

It is with great pleasure that I introduce Andrew Thorp as our guest on this week’s Business N2K podcast. Andrew is a business speaker and trainer focusing primarily on effective communication skills within business.

Andrew recently launched SpeakEasy within the North West and it is proving hugely popular amongst the local business community.  SpeakEasy is a forum for business leaders and owners to get together in a supportive and informal environment to practise delivering their business message and obtain valuable feedback in the process. I was lucky enough to attend a recent SpeakEasy event in Manchester to experience the benefits first-hand – it was a great and enlightening experience.

In this conversation, Andrew shares some tips and learning points on effectively communicating your business benefits and message including:

  • the art of influencing and making an impact
  • the importance of engaging listeners with your passion for your business proposition
  • how to effectively use humour
  • implementing changing ‘status’ to add impact and influence
  • incorporating the 3 circles of influence
  • introducing the Magic of 3
  • essential tips for using slides (or the dreaded PowerPoint)

It is said that a US survey identified public speaking as the No.1 Fear held by people (death was ranked as a lowly second!). Yet with practise and perseverance in an encouraging atmosphere like SpeakEasy, many more business people should be able to tackle this vitally important (life as well as) business skill with confidence.

How you can listen to the BusinessN2K podcast:

  1. Subscribe by clicking on the Subscribe to Podcast icon in the side bar or subscribe via iTunes. This is the best way to listen as it will ensure that all future episodes are delivered directly to you as new episodes are released, or
  2. Click on the Blubrry player below to listen now:

Blubrry player!

Please leave your comments, feedback and suggestions for future shows in the comments section below.

Credits: Thanks to Andrew Thorp for this week’s show + music used in the BusinessN2K podcast is by Viba – In the Orchard lies a Secret – available as a free download and is released under a Creative Commons Licence

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Show 002 – The F-Word, Twitter and Sweet Mandarin with Lisa Tse

I am delighted to introduce Manchester-based entrepreneur, Lisa Tse of The Sweet Mandarin, as an inspirational guest for this week’s BusinessN2K podcast.

Lisa is famed more recently for her appearance on Gordon Ramsey‘s The F-Word, in which her family-run restaurant Sweet Mandarin won the prestigious Best Local Chinese Restaurant in the UK. Aside from the wonderful cooking, Lisa and her sisters have broken new ground in mixing new marketing techniques to help build a traditional yet thriving business. Her forward thinking approach to business and creativity has led to her role as an alumni of Manchester Metropolitan University Business School and she is in high demand to speak at business conferences throughout the North West and beyond.

I first ‘met’ Lisa on Twitter after being bowled over by how much she ‘gets’ social mediaTweetUps and all! Her business has continued to thrive as they have steadily built their community of enthusiastic customers. Lisa has a refreshing outlook on business, having worked as a financier in London (a ‘corporate job’) and made the leap to running her own entrepreneurial business. She is focused on making every experience the best for her customers in order to build the restaurant and leave a legacy – rather than focusing on building a chain of restaurants which could result in growth for growth’s sake.

In this conversation we cover:

  • What inspired Lisa to make the leap from the safety of a corporate job to running her own business with her sisters
  • How she has embraced social media such as Twitter to help build her business
  • The importance of staying close to your roots and understanding what contributes to your success
  • Being open to new ideas and suggestions from customers to create new services
  • The value of looking after your customers and how they can turn into some of your best marketeers
  • Innovative ways of taking customer orders!
  • Staying focused on what you are good at and not getting distracted by new trends etc
  • Finding new ways to connect with your customers
  • (unfortunately we ran out of time to discuss their Sweet Mandarin book !)

The Sweet Mandarin represents a new breed of entrepreneurial business that is closely intertwined with its customers. Lisa and her sisters are the ‘face’ of the business and they actively engage with their customers and the wider Manchester business community. They manage to mix more traditional and established business (restaurateurs) with new (social media, community engaged, transparent, forward thinking).

I firmly believe that we can all learn as businesses from Lisa, her sisters and Sweet Mandarin.

How you can listen to BusinessN2K:

  1. Subscribe by clicking on the Subscribe to Podcast icon in the side bar or subscribe via iTunes. This is the best way to listen as it will ensure that all future episodes are delivered directly to you as new episodes are released, or
  2. Click on the Blubrry player below to listen now:

Blubrry player!

Please leave your comments, feedback and suggestions for future shows in the comments section below.

Credits: Thanks to Lisa Tse for this week’s show + music used in the BusinessN2K podcast is by Viba – In the Orchard lies a Secret – available as a free download and is released under a Creative Commons Licence

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