HMRC Compliance Duties after you receive Advanced Assurance under SEIS & EIS

Through receiving your Advanced Assurance you can give your prospective investors a reasonable degree of certainty that your business qualifies for the SEIS & EIS tax benefits.  

What the company needs to file to HMRC when you are issuing SEIS & EIS Shares 

You will of course need to continually check that you still qualify for both SEIS & EIS, respectively. This is particularly important as you begin to allow investors to subscribe to the shares in your business, but you won’t need to file anything new to HMRC until the business has successfully closed their initial funding round in addition to meeting one of the following milestones: 

• Been actively trading for at least 4 months 

• Spend at least 70% of the monies raised via the relevant share subscription 

Once the above milestone has been met, you will need to submit one or both of the following forms depending on your situation: 

• Compliance Statement – Form SEIS 1 
• Compliance Statement – Form EIS 1 

!! Warning !! If you are registered for SEIS as well as EIS, you need to ensure that the share issued are clearly separate and issued in different tranches, and this separation is clearly reflected in your legal documentation as well as Companies House. 

What the company receives back from HMRC and what you need to give your SEIS & EIS Investors 

Assuming there are no issues with the Compliance Statement(s), HMRC will issue the following forms to the business: 

• Form SEIS 2 
• Form EIS 2 

In addition to the above, they will issue forms below that the business will need to complete and give to the relevant investors: 

• Form SEIS 3 
• Form EIS 3 

How do the investors obtain their SEIS & EIS tax relief 

After receiving the forms SEIS and/or EIS 3 from the business, they can use this to complete their self-assessment and claim the associated tax relief. 

If you need support with SEIS & EIS, contact us.