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Unless you've got a Scrooge McDuck money pit you can dive into and draw out a couple of million at will, your business will likely need to raise some...
Are you looking for a cash injection for your startup? The Seed Enterprise Investment Scheme (SEIS) could be for you.
SEIS is a government-backed initiative that encourages investment in early-stage companies and startups by providing attractive tax reliefs for investors.
Billions of pounds have been raised since SEIS was unveiled in 2012 which has helped countless businesses get the funding they need to grow and develop.
In this article, we’ll answer the most common questions surrounding SEIS.
As of April 2023, to be eligible for SEIS funding your company must:
Of course, there are further conditions your company must meet to be eligible for the scheme, and some trades are excluded. There are also rules for investors to maintain their tax benefits too.
While advance assurance isn’t mandatory, we highly recommend applying for it before selling shares to investors.
Many investors also require advance assurance before parting with their cash, so they know the company they’re backing is eligible and they can claim their tax benefits.
To apply for SEIS/EIS advance assurance, sign up to Vestd. Our guided workflow simplifies the whole process. Or you can apply via HMRC's website.
But before you do that, download our free SEIS/EIS guide. It contains a checklist, the criteria and everything you need to know to increase your chances of a successful application.
If your advance assurance application is successful, you can then apply for SEIS or EIS with complete confidence.
Quick answers to common questions.
Investors can claim back up to 50% of their investment through SEIS, subject to certain conditions.
You will claim your SEIS tax relief back when you submit your annual tax return. You will receive an SEIS3 certificate from the company you invested in (typically a few months later), which will contain the relevant information you need to include on your tax return.
As with any investment, there's a risk that you may not get your money back if the company you invest in fails. However, the tax relief is there to offset some of this risk.
This has been a super quick look at how to get SEIS funding for your startup. To learn more, download our free guide.
You could always hop on a free call with an equity specialist to talk about advance assurance and all the other ways Vestd can help set your startup up for success.
Published 25/08/23, updated 01/09/23.
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