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The preparation & application process

Navigating the SEIS/EIS application process can seem daunting, but with a clear step-by-step approach, you can qualify and secure your startup's investment.

Here’s a simplified overview of the SEIS/EIS process:

Step 1: Advance Assurance (SEIS1)

Your first step is to check if your company qualifies for SEIS/EIS. Submit an advance assurance application to HMRC detailing your business activities and planned use of funds. Obtaining advance assurance can give potential investors confidence that their investment will qualify for tax relief. You can do this right after registering your startup and receiving your unique tax reference (UTR).

Step 2: Issue Your Shares

Once you have advance assurance and convinced your investors to invest in your startup, you can issue shares to investors. Ensure that the shares are issued according to SEIS/EIS guidelines and keep detailed records of the share issue and the investors involved.

Step 3: Compliance Statement (SEIS2)

After issuing shares, confirm compliance by submitting a compliance statement (SEIS2) to HMRC. This demonstrates that you’ve met all SEIS/EIS conditions, which is crucial for investors to claim their tax relief. You can do this after 4 months of active trading for SEIS, and for EIS you need to have done at least 4 months of R&D in order to comply.

Step 4: Investor Claim Form (SEIS3)

The next step is to issue SEIS3 certificates to provide your investors with the necessary documentation to claim their tax relief. You can get your certificates on the HMRC Government Gateway. Promptly issuing these forms helps investors claim their benefits without delays.

Step 5: Ongoing Compliance

Finally, ensure that your startup meets SEIS/EIS requirements by maintaining compliance for at least three years. Regularly review HMRC guidelines and keep thorough records to avoid any issues.

Following these steps will help you efficiently navigate the SEIS/EIS process and secure the investment your startup needs to grow.

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