what is the difference between seis and seis advance assurance

What Is The Difference Between SEIS And SEIS Advance Assurance?

Linkilaw Legal Advice, Startup Advice & Tips

What Is The Difference Between SEIS And SEIS Advance Assurance?

An investor usually invests if they know they will benefit from this tax break. If you make your investor wait for this, once you have it your investors could be long gone. 

Since SEIS was launched in 2012-13, 6,665 individual companies have received investment through the scheme and £621 million in investment has been raised.

Want to be one of them, get on board and don’t miss your investors! We can assist you in applying for SEIS advance assurance.

What Does SEIS Advance Assurance Mean?

It will enable you to check your share issue will meet the SEIS qualifying conditions. HMRC will normally be bound by any assurance given.

Even if it is not a mandatory application, it is wise to apply to attract investors. It will also facilitate next step as HMRC would have already issued an advance assurance.

However, the advance assurance does not cover the issue of relief to any individual subscriber. HMRC is not bound if the information given at the time of the application was not accurate and complete.

How To Benefit From SEIS Advance Assurance

You can apply if you are the company secretary, the director or an authorised agent.

You will need to fill in the form called SEIS/EIS (AA) in the link below.

https://public-online.hmrc.gov.uk/lc/content/xfaforms/profiles/forms.html?contentRoot=repository:///Applications/CorporationTax/1.0/EIS-SEIS(AA)&template=EIS-SEIS(AA).xdp

Then you should send this form to:

Small Company Enterprise Centre

(Admin team)

Mid-size Business S0777

Newcastle

NE98 1ZZ

It should take no longer than four weeks but it can be approximately 8 weeks around key tax deadlines or depending on your business structure.

If your application is approved, you will receive a statement saying the investment is likely to qualify. However, you still need to complete a formal application called a compliance certificate.

Tips About The Advance Assurance Application

  • Don’t leave it too late
  • Apply for both SEIS and EIS with a single advance assurance application.
  • As of January 2nd, 2018 you are required to give details of your potential investors so it is advisable to approach them before applying. The goal was to not opine on speculative applications.
  • When you submit, it should include as much information as possible  – business plan, latest account, memorandum and company’s article of association, details about any “de minimis aid” received.
  • Don’t forget your investors must meet separate conditions which are not considered in an advance assurance form.
  • After you get your HMRC advance approval, stick to your business model. Thus, SEIS advance assurance enables businesses to get an assurance about their SEIS eligibility in order to secure investors before actually applying for tax relief.

I hope this helps! If you’re unsure about the legal advice that you or your startup require, we offer a Free Legal Session. We’ll talk you through your needs and answer the questions you may have.

Comments

comments