MSP Company Secretarial provides both SEIS and EIS support to a range of businesses in need of assistance with the required ongoing administration.
What are they?
The Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) are offered by the UK Government to encourage investment into UK companies that will allow investors to benefit from tax relief.
There are different rules and qualifying criteria for each scheme for companies to be able to utilise the benefits.
EIS is for larger companies that allow investors to invest up to £1m each year in qualifying EIS companies to benefit from income tax relief at 30% of the amount investment.
SEIS is for smaller, start-up companies, with an investment limit of £100,000 each year to benefit from income tax relief at 50% of the amount investment.
What are the rules?
The rules to comply with each scheme can be quite complicated. There is a set criteria for each scheme to be eligible to use it that is set out by HMRC here for EIS and here for SEIS.
Once your Company has been accepted into the scheme, there are ongoing compliance rules that must be followed.
These rules relate to:
- The types of shares that can be issued through the scheme.
- The limit of capital that can be raised using the scheme.
- How and when the money raised through the schemes can be used
- The creation of the share certificates that are issued to investors in order to claim the tax relief.
The SEIS and EIS support
The rules relating to setting up and administering EIS and SEIS schemes can put companies off using them. However, investors can get significant benefits from investing in EIS and SEIS schemes, hence why MSP has developed SEIS and EIS support schemes for eligible companies.
Once you are set and up using the scheme, MSP support you in ensuring compliance with the rules of the scheme and administering the share certificates to shareholders. We can offer expert advice on eligibility to the scheme and undertake the necessary filings on your behalf.