saas

GF010 – What trades qualify for SEIS / EIS + potential problems for software (saas) companies!

Get Funded! podcast covering SEIS and EIS

In this episode of the Get Funded! podcast we cover the types of trades that qualify for funding under the Seed Enterprise Investment Scheme (SEIS) and the Enterprise Investment Scheme (EIS).

We discuss the HMRC excluded activities list that you need to check to confirm that your proposed trade is not listed i.e. excluded. If not, then you should be okay.

There is a relaxation for these excluded activities to be included within your trade although it must not amount to a ‘substantial’ proportion of your overall trade. ‘Substantial’ for these purposes is deemed to amount to no more than 20%. The HMRC advance assurance procedure would be key in these circumstances.

We pay particular attention to the potential problem for software companies (particularly software-as-a-service (Saas) based companies) given that the receipt of royalties or licence fee income IS an excluded activity. There is a carve-out from this exclusion for companies that create the whole or greater part of the underlying asset that generates the licence or royalty fee income –  most software companies rely on this exemption to qualify for SEIS / EIS – but there are some further traps for the unwary….

10 benefits of working with a cloud accountant

  1. We  work together on the same figures – working in real-time.
  2. We can step in and advise early if something looks amiss or where there’s a potential planning opportunity.
  3. You know where you are in terms of business performance now. Today. This week. This Month. And so can act upon it.
  4. We can work at your pace and share our work progress in shared secure online drives – transparency reigns!
  5. We can work together anytime, anywhere. Whether you are in London, Cornwall, Bristol, Aberdeen or closer to home in the north west. Location really doesn’t matter to access the best accountancy services today.
  6. We will always be working on the latest versions of our accounting, CRM, etc saas based software as they can be updated by the service providers online. No more waiting for CD ROM patches and updates.
  7. The days of attempting (and often failing!) to email large files plus the potential for confusion over latest versions are long gone. We handle all data securely in the cloud which makes everything much easier.
  8. New tech add-ons are released regularly to further streamline processes and reduce admin.
  9. Year-end accounting work becomes a formality rather than an information sharing event – there should be no ‘news’ at your year end.
  10. We can now truly become an extension of your management team.

So what are you waiting for…..?

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