The UK government offers several tax incentives aiming to promote national economic growth. Entrepreneurs can benefit from the Enterprise Investment Scheme (EIS) or the Seed Enterprise Investment Scheme (SEIS) to attract more investors to their business.
Pentins Business Advisers are experts at helping businesses apply for the EIS and SEIS schemes. We work closely with our clients, which means that we can delve deeper into your business and better understand your unique needs. For growing businesses, this could mean using the EIS or SEIS schemes.
What is EIS?
The EIS offers excellent tax relief to individual investors if they buy new shares in your company. Being approved for the Enterprise Investment Scheme attracts more investors to your business, as the tax relief makes the investment much less risky.
What is SEIS?
Like EIS, SEIS offers tax relief to investors if they buy new shares in your company. The Seed Enterprise Investment Scheme is only available to new businesses and startups. Investors can get better tax relief under SEIS compared to EIS, but you can not raise as much money under this scheme as you can under EIS.
Who can qualify?
Most companies that are permanently established in the UK could qualify. As EIS and SEIS are designed to help smaller businesses, there are limits to how large your business can be.
To qualify for the Enterprise Investment Scheme, your company must have less than 250 employees, and own less than £15 million in gross assets.
For the Seed Enterprise Investment Scheme, you must have less than 25 employees, and gross assets of less than £200,000. The SEIS is specifically designed to help new businesses, and is only available to businesses that are less than two years old.
Most sectors are eligible for the scheme, with certain exceptions. There are some additional limitations, but we find that most small business owners and startups that we work with can qualify. Finding investors can be a great way to raise capital to start a business, or to help you take your business to the next level.
At Pentins, we take a holistic approach to accountancy, which also allows us to identify any other tax relief that your business could qualify for, such as Research and Development. We are the best EIS accountants in Canterbury, with years of experience in helping small business and startups grow.
If you would like to find out whether the Enterprise Investment Scheme or the Seed Enterprise Investment Scheme would be suitable for your business, book a free call with one of our advisers today.