Launching our new course on the HMRC SEIS / EIS advance assurance

Delighted to have launched our new online step by step guide to preparing and filing an Advance Assurance Application to HMRC that your company qualifies under SEIS and / or EIS! Really brought about by popular demand and to fill a gap where some companies simply don’t have the budget to take on a professional … Read moreLaunching our new course on the HMRC SEIS / EIS advance assurance

Launching our new SEIS / EIS training course

We are delighted to launch our new SEIS / EIS training course. This free course will be delivered via email in a series of bite-sized chunks. Aimed at company founders seeking SEIS and / or EIS investment, the course should prove to be an excellent primer in helping entrepreneurs educate themselves on how they can … Read moreLaunching our new SEIS / EIS training course

FGB004 – Jonathan Lea on legal issues to consider in closing a funding round

Fast Growth Businesss

Jonathan Lea of the Jonathan Lea Network joins me this week to discuss legal issues to consider when seeking to close an early stage funding round. Legal issues to consider when closing a fundraising round In this podcast we cover: What documents most investors will typically expect startup founders to have in place – from … Read moreFGB004 – Jonathan Lea on legal issues to consider in closing a funding round

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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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.