Step 3: Submit compliance statement

After closing your funding round, the next important step is to submit your SEIS Compliance Statement (SEIS1) to HMRC. This is important for your investors, allowing them to claim tax relief. Here’s a detailed guide on how to handle this process efficiently:

Why Submit the SEIS1 Compliance Statement?

Submitting the SEIS1 Compliance Statement promptly demonstrates to your investors that you are diligent and organised. It also helps to finalise the administrative tasks related to the funding round, allowing you to focus on growing your business.

Criteria for SEIS1 Compliance

Before you can submit the SEIS1 form, your company must meet at least one of the following two criteria:

• Qualifying Business Activity: Your company must have been doing the eligible business activity for at least 4 months and not for more than 3 years. A list of excluded activities is available here.
• Investment Utilisation: Alternatively, you must have spent at least 70% of the relevant share issue.

You must complete a separate compliance statement for each share issue.

It's worth noting that you have 2 years from the end of the tax year in which you issued the shares to apply for SEIS and the funds raised must be spent within 3 years of the share issue.

What are the steps to submit the SEIS1 Compliance Statement?

1. Prepare Required Information:
   Ensure you have detailed records of your business activities, showing that you have carried out the qualifying business activity for the required period or have spent the necessary amount of the SEIS funds. Gather all financial documents and expenditure reports related to the SEIS investment.
2. Complete the SEIS1 Form:
   Go to the Government Gateway platform and fill out the SEIS1 form with accurate details about your company’s trading activities and use of SEIS funds. Include information about your investors and the share issuance.
3. Attach Supporting Documents:
   Attach your latest accounts or bank statements and any other relevant financial documentation. Provide evidence of trading activities or expenditures that meet the SEIS criteria.
4. Submit the SEIS1 Form:
   Review all the information carefully to ensure accuracy. Submit the completed SEIS1 form through the Government Gateway platform.
5. Await HMRC Confirmation:
   After you submit it, HMRC will review your compliance statement. Once approved, they will send you a letter of authorisation, a unique reference number and a compliance certificate (form SEIS3) to give to your investors.

Tips for a Smooth Submission Process

• Be prompt: To show investors you are proactive, aim to submit the SEIS1 form as soon as you meet the criteria.
• Keep detailed records: Maintain comprehensive records of your business activities and expenses related to the SEIS investment.
• Double-check information: Ensure all details in the SEIS1 form and supporting documents are accurate to avoid delays.

By following these steps and meeting the necessary criteria, you can efficiently submit your SEIS1 Compliance Statement and enable your investors to claim their tax relief.