I often get approached by new companies looking for advice on what they need to do to get things right from the start. I provide advice about bookkeeping systems and basic tax considerations but I also know of a very beneficial tax relief for startups called SEIS.
The HMRC scheme is not a “tax avoidance scheme” but is a government initiative to give UK taxpayers tax relief on their income tax bills when investing in small new companies in the form of share capital investment.
There are many rules about SEIS so it is important to take professional advice from a specialist but the minimum amount you can expect to recover is 50% of your investment as a refund of income tax. There are additional tax reliefs for re-investing crystallised gains at the time of buying these shares or even loss relief if your investment is not successful. This significantly reduced the risk associated with this type of investing.
EIS is also the same scheme but for companies older than two years old or if the company receives more than the £150,000 SEIS limit and this allows 30% income tax relief on the cost of your investment. You are not allowed to control more than 30% of the company under either scheme.
I have found online on LinkedIn SEIS and EIS Tax Specialists so you can get in touch today and ask about how you or your business might benefit. As your bookkeeper they would be able to monitor that the company does not inadvertently negate the scheme by doing something disallowed during the three year investment period.
SEIS Specialists - https://www.keybusinessconsultants.co.uk/seis
Please note, the information on this page was correct as per the date of posting. We strongly advise you obtain the advice of a tax professional before following the content on this page.