Raise Up to £5 Million for Your Growth Company with 30% Investor Tax Relief
Unlock significant growth funding by leveraging the Enterprise Investment Scheme’s powerful tax incentives for investors. Our Sutton-based team supports Surrey and London scale-ups through every phase of EIS qualification, approval, and ongoing regulatory compliance.
EIS Accountants Helping Growing Companies Raise Up to £5 Million Tax-Efficiently
The Enterprise Investment Scheme represents the UK’s premier tax incentive programme for scaling businesses, facilitating substantial capital raises by providing investors with attractive 30% income tax relief and full capital gains tax exemption upon exit. My Tax Helper, operating from Sutton and serving clients throughout Surrey, South London and nationwide, delivers specialist EIS application support, compliance oversight and multi-round funding strategy for high-growth enterprises.
Our expertise covers the complete EIS lifecycle from companies making the leap from SEIS to larger rounds, through first-time institutional raises, to investors building and managing diversified EIS portfolios with comprehensive support spanning qualification analysis, HMRC advance approvals, three-year regulatory monitoring and exit optimisation.
Book Your Free SEIS Consultation
What Is EIS and Why Does It Matter?
The Enterprise Investment Scheme stands as Britain’s flagship tax incentive for channeling private capital into high-potential growth businesses. Through generous investor tax breaks, EIS fundamentally changes your fundraising dynamics—enabling you to secure meaningful capital for expansion while preserving equity control and avoiding the restrictive terms typical of institutional venture arrangements.
EIS Eligibility Checker
Answer these questions to see if your company qualifies for EIS funding
Company Age & Trading Status
Let's start with when your company was incorporated and began trading
Why this matters: Your company must not have been trading for more than 7 years when EIS shares are issued (10 years for knowledge-intensive companies). "Trading" starts when you make your first sale, not when you incorporated.
Trading begins when you make your first commercial sale, not at incorporation.
Knowledge-intensive companies get extended trading period (10 years) and higher funding limits (£10m annual / £20m lifetime).
Company Size Thresholds
EIS has limits on company size to target growth-stage businesses
Important: Your gross assets must be under £15 million before EIS investment and under £16 million after. This includes all tangible and intangible assets, cash, and investments across all subsidiaries.
Include all assets: tangible, intangible, IP, cash, investments, and deferred revenue.
Standard limit: 250 FTE. Knowledge-intensive limit: 500 FTE. Include all subsidiaries and count part-timers proportionally.
Previous Funding History
Tell us about any previous investment or government support
Good to know: You can raise up to £5 million per tax year and £12 million lifetime through EIS (£10m/£20m for knowledge-intensive). SEIS, R&D tax credits and certain grants are compatible with EIS.
Lifetime limit: £12 million (£20 million for knowledge-intensive companies).
Trading Activities
EIS excludes certain types of businesses
Requirement: Your qualifying trade must be carried on substantially in the UK. Most tech and service businesses with international customers qualify if their teams and operations are UK-based.
At least 80% of your trading activities must be qualifying activities.
Shareholder Structure
Final questions about your company structure and shareholders
Connected party rules: Directors can invest and claim EIS relief if they're not employees receiving more than £30,000 salary. External investors and most directors qualify, unlike SEIS where directors rarely qualify.
Investors (including connected parties) cannot own more than 30% after the EIS investment.
Directors earning under £30,000 salary can typically claim EIS relief on their own investments.
The EIS Advantage for Your Growth Company
Secure Capital for Meaningful Expansion
EIS enables annual fundraising of £5 million with lifetime capacity reaching £12 million—substantially exceeding SEIS’s £250,000 constraint. This capital scale supports transformative growth activities from building leadership teams and developing products to entering new markets and scaling internationally.
Create an Attractive Investment Case
With 30% immediate income tax relief, investor acquisition costs drop significantly, a £100,000 commitment effectively costs £70,000 post-relief. When combined with total CGT elimination after three years plus loss relief provisions for failed ventures, EIS fundamentally improves investment risk-return dynamics for sophisticated capital sources.
Connect with Dedicated EIS Capital Sources
Qualifying for EIS unlocks access to specialized angel groups, institutional EIS funds and affluent individuals specifically targeting EIS opportunities. Numerous investment networks and funds maintain EIS-only investment mandates, making qualification essential for consideration.
Preserve Founder Control and Flexibility
EIS funding typically avoids the complex structures demanded by traditional VCs—no extensive preference provisions, liquidation waterfalls or restrictive governance arrangements. Tax motivation drives investors rather than aggressive protection mechanisms, facilitating cleaner capitalisation structures and entrepreneur-friendly terms.
Position for Institutional Capital
EIS frequently bridges angel financing and venture capital stages. Successful EIS rounds validate market demand and business traction, strengthening positioning for Series A and subsequent institutional funding conversations.
Demonstrate Business Credibility
Securing HMRC advance approval validates your business fundamentals, corporate structure and expansion strategy against demanding qualification standards—creating credibility that extends beyond fundraising to relationships with customers, suppliers and strategic partners.
Lets understand EIS
EIS Eligibility Assessment and Strategic Planning
Prior to investor approach or fundraising launch, we execute thorough qualification evaluation spanning all HMRC criteria. This process surfaces addressable issues through advance planning, problems that would otherwise trigger rejection or expensive delays post-fundraising commencement.
Comprehensive Assessment Covers:
- Company Age and Trading Status: Precise trading commencement date calculation and remaining EIS eligibility window (maximum 7 years trading, 10 years knowledge-intensive). For non-trading entities, "preparing to trade" status evaluation
- Knowledge-Intensive Qualification: Thorough analysis of R&D expenditure test compliance (10% annual costs or 15% three-year average), innovation criteria (IP generation and commercial deployment), and skilled workforce test (20% or more STEM degree-qualified employees). Comprehensive HMRC evidence compilation
- Gross Assets Analysis: Total asset valuation including physical assets, intangibles, IP, work-in-progress, receivables, and liquid assets, confirming sub-£15 million pre-investment positioning (£16 million post-investment). Multi-entity consolidation for subsidiary structures
- Employee FTE Calculation: Exact full-time equivalent determination spanning all workforce including partial-time staff, contractors, and subsidiary personnel (maximum 250 FTE, or 500 FTE knowledge-intensive companies)
- Qualifying Trade Review: Comprehensive business activity assessment against HMRC excluded trade specifications. Mixed-activity enterprises require qualifying versus non-qualifying calculations (minimum 80% qualifying mandatory)
- Previous Funding Analysis: Complete prior investment documentation including SEIS, earlier EIS rounds, grants, subsidised lending, and state aid confirming remaining EIS availability and risk finance state aid boundaries
- Shareholder Structure Review: Connected party determination (30% or more shareholders, directors, employees exceeding £30,000) and relief eligibility assessment. Family and associate relationship documentation
- Use of Proceeds Planning: Expenditure framework development satisfying HMRC "growth and development" standards (70% qualifying activity deployment within 2 years)
- Subsidiary Structure Review: For existing or planned subsidiaries, qualifying subsidiary rule assessment, 90% or more ownership verification, and group structure compliance evaluation
- Timeline Planning: Optimised scheduling for application, fundraising, share issuance, and subsequent rounds. SEIS compliance period coordination where applicable
What You Receive:
- Thorough qualification report addressing complete criteria spectrum
- Knowledge-intensive eligibility determination with evidence documentation requirements
- Problem identification accompanied by resolution recommendations
- Issue resolution scheduling pre-application where required
- Application readiness verification confirming advance assurance preparedness
- Funding sequence strategic counsel and multi-round planning
Key Thresholds: Maximum 7 years trading (10 years KI) | Gross assets below £15 million | Maximum 250 employees/FTE (500 KI) | £5m annual / £12m lifetime capacity (£10m/£20m KI) | Qualifying trade exclusively | 80% or more qualifying operations
EIS Advance Assurance Applications
HMRC advance approval delivers investor confidence in your EIS qualification pre-funding commitment. Whilst not legally mandatory, sophisticated angels and EIS funds universally require advance approval. Most declining meetings absent its presence. We develop thorough applications satisfying HMRC's rigorous standards.
Complete Application Package Includes:
- VCM1 Form Preparation: Thorough application form addressing complete qualifying criteria with precise, persuasive explanations customised for HMRC requirements. Every component completed with technical accuracy appropriate for HMRC's specialist evaluation team
- HMRC-Focused Business Plan: Comprehensive business plan addressing market dynamics, competitive landscape, product or service specifications, revenue approach, financial forecasting, leadership capabilities, and capital deployment, explicitly formatted for HMRC assessment (distinct from investor-oriented plans). Validates genuine business foundations and expansion strategies
- Knowledge-Intensive Evidence Package: For companies seeking knowledge-intensive status, comprehensive evidence including R&D expenditure calculations and supporting schedules, innovation condition evidence (IP creation, patent applications, development records), skilled employee qualifications and STEM degree verification, commercial exploitation plans for developed IP, and three-year R&D expenditure history where applicable
- Technical Appendices: Supporting documents addressing qualifying trade analysis and evidence, substantial UK activities breakdown (80% threshold), gross assets calculations with detailed schedules, employee FTE workings and calculations, previous funding declarations and state aid position, use of proceeds breakdown and spending timeline, and subsidiary structure and qualifying subsidiary status
- Supporting Documentation Coordination: Articles of association, recent accounts or management accounts, shareholder register, employee contracts and schedules, IP documentation (patents, trademarks, development records), supplier or partner agreements, and R&D records
- HMRC Correspondence Management: Application submission via HMRC online portal, acknowledgement tracking, response to queries within 48 hours, provision of additional information as requested, clarification correspondence, and negotiation of conditional approvals where necessary
Timeline and Process:
- Preparation Phase: 3 to 6 weeks for complete application assembly with comprehensive documentation (extended duration for knowledge-intensive applications requiring detailed R&D evidence)
- HMRC Processing: 4 to 6 weeks for straightforward submissions, 8 to 12 weeks for complex scenarios involving knowledge-intensive qualification, novel business categories, group frameworks, or marginal qualifying circumstances
- Advance Assurance Letter: Approval delivers HMRC verification letter for investor fundraising distribution
- Validity Period: Advance approval typically maintains validity approximately 12 to 24 months assuming circumstances remain materially unchanged
What Happens After Approval:
- Confidently engage investors presenting HMRC EIS status verification
- Investors receive certainty regarding 30% income tax relief eligibility
- Fundraising probability dramatically increases with advance approval secured
- Close rounds and issue shares confident in compliance statement approvals
- Unlock access to EIS funds and angel networks mandating advance approval
Share Issuance and EIS Compliance Statements
Following successful EIS round closure, HMRC compliance statements enable investors to claim their 30% income tax relief. Processing delays create investor frustration and relationship damage. We guarantee swift, precise processing delivering EIS3 certificates promptly.
Complete Compliance Management Includes:
- EIS1 Compliance Statement Preparation: Thorough form verification confirming sustained qualifying condition compliance, encompassing all share issue investments, declaring qualifying trade initiation, documenting use of proceeds advancement, and verifying share class and entitlements
- HMRC and Companies House Submission: Digital submission via HMRC online system, Companies House Form SH01 for allotment filing, submission acknowledgement monitoring, and HMRC query or clarification request management
- EIS3 Certificate Generation: Individual investor tax relief certificates featuring Unique Investment References (UIR), professional document formatting and presentation, plus clear relief claiming instructions for investors
- Certificate Distribution to Investors: Secure investor delivery accompanied by Self Assessment completion guidance, carry-back election option explanations, holding period commencement confirmation, and three-year compliance requirement communications
- Share Register Compliance: Updated registration reflecting EIS investment, share class and rights verification, Companies House confirmation statement submission, and statutory register maintenance
- Ongoing Investor Communication: Consistent compliance process progress updates, investor question responses regarding certificates and relief claiming, and relationship maintenance ensuring investor confidence
Timing Requirements and Expectations:
- Compliance Statement Submission: Filing becomes possible following either 70% capital substantial deployment on qualifying activities (within 2 years) or after 4 months trading operations, whichever arrives first
- Preparation Time: 1 to 3 weeks post-qualifying conditions satisfaction for thorough compliance statement preparation
- HMRC Processing: Typically 3 to 6 weeks for HMRC compliance statement review and approval
- Certificate Issuance: EIS3 certificates delivered within 6 to 10 weeks total from compliance statement submission
- Investor Relief Claiming: Investors immediately claim 30% income tax relief upon EIS3 certificate receipt in their Self Assessment submissions
Three-Year EIS Compliance Monitoring
EIS qualification requires maintenance across the three-year holding period commencing at share issuance. Specific company actions during this timeframe trigger "disqualifying events", mandating investor repayment of their 30% income tax relief to HMRC. We deliver continuous compliance oversight, annual assessments, and proactive disqualifying event identification.
Comprehensive Compliance Monitoring Includes:
- Annual Compliance Health Checks: Complete activity, structure, and operations review, qualifying trade continuation verification, gross asset and employee count surveillance, share structure and rights validation, subsidiary structure and qualifying subsidiary adherence, and comprehensive disqualifying event trigger assessment
- Proactive Disqualifying Event Prevention: Pre-problem issue identification, advance notification of proposed compliance-affecting actions, decision structuring guidance preserving EIS qualification, and investor impact evaluation for potential compliance challenges
- Trade Change Assessment: Business evolution and organic growth evaluation, disqualifying trade change determination, new product, service, or business line assessment, and permissible evolution versus disqualifying change guidance
- Follow-On Funding Round Planning: Subsequent round strategic planning whilst maintaining EIS compliance, multiple EIS round planning within annual and lifetime boundaries, gross asset management approaching £15 million threshold, employee count projection toward 250 FTE ceiling (500 FTE knowledge-intensive), and investor holding period coordination with new EIS capital
- Share Structure Modifications Review: Proposed split, consolidation, or reorganisation assessment, new share class or preference share introduction evaluation for VCs, rights modification or shareholder agreement review, and EIS-compliant ordinary share structure maintenance guidance
- Acquisition and Subsidiary Planning: Other business acquisition guidance as qualifying subsidiaries avoiding disqualification, subsidiary structure and 90% ownership requirement assessment, new subsidiary qualification review, and non-qualifying activity management through group architecture
- Exit Planning and Acquisition Advisory: Merger proposal and EIS compliance implication assessment, exit structuring preserving investor tax benefits where achievable, and trade sale or IPO planning considering three-year holding periods and CGT exemption eligibility
Common Disqualifying Events We Monitor For:
- Ceasing the qualifying trade or making significant trade changes outside the original scope
- Issuing shares that are not fully paid ordinary shares (preference shares, redeemable shares, and similar)
- Share buy-backs, redemptions, or capital repayments to shareholders during holding period
- Granting preferential rights to assets on winding up not present at share issuance
- Exceeding gross asset limits (£15m pre-investment, £16m post-investment) through follow-on funding or acquisitions
- Exceeding employee limits (250 FTE or 500 FTE for knowledge-intensive) through team expansion
- Becoming controlled by another company or creating improper control relationships
- Acquiring subsidiaries that are not qualifying subsidiaries (less than 90% owned or non-qualifying activities)
- Exceeding non-qualifying activities threshold (more than 20% of trading activities)
- Raising prohibited forms of state aid or exceeding risk finance state aid limits
- Repaying connected party loans or making loans to directors or shareholders
Annual Deliverables:
- Annual compliance documentation verifying ongoing EIS qualification and investor relief protection
- Concern or potential issue identification requiring response
- Recommended compliance maintenance actions throughout remaining holding duration
- Investor compliance confirmation materials where requested
- Follow-on EIS round or institutional funding strategic planning
Fundraising Support and Investor Relations
Whilst we are accountants rather than fundraising advisers, our EIS expertise positions us to support your fundraising process in specific ways that improve your success probability.
Investor-Facing Documentation Support:
- EIS Tax Benefits Summary: Clear, professional summaries for investor presentations explaining the 30% income tax relief, CGT exemption, loss relief, IHT relief, and effective risk-reward profile
- Q&A Preparation: Comprehensive Q&A documents addressing common investor questions about EIS qualification, knowledge-intensive status, compliance requirements, holding periods, and tax relief claiming process
- Term Sheet Review: Review of proposed term sheets to identify EIS compliance issues before you commit to terms that might disqualify your round (preference shares, redemption rights, and similar). Guidance on structuring mixed rounds with both EIS and VC investors
- Investor Communication Templates: Professional email templates and update formats for communicating EIS process updates, advance assurance approval, and compliance statement progress to investors
Due Diligence Coordination:
- Responding to Investor Advisers: Handling EIS queries from investors' accountants, tax advisers, and solicitors during due diligence with technical accuracy and professionalism
- Documentation Package: Providing advance assurance letter, supporting documentation, knowledge-intensive evidence (if applicable), and technical appendices to investor advisers for their review
- Compliance Confirmation: Confirming EIS qualification during investor due diligence and addressing any concerns raised by their advisers
- Legal Counsel Coordination: Technical clarifications for investor legal counsel reviewing share subscription agreements, articles of association, and investment documentation
What We Do Not Provide:
We are tax and compliance specialists, not fundraising consultants. We do not provide investor introductions, pitch deck preparation, valuation advice, or fundraising strategy. However, we ensure your EIS structure and documentation are investor-ready when you do raise capital.
EIS Tax Relief Claims and Optimisation
We assist angels, family offices and high-net-worth individuals in maximising tax relief across EIS portfolios via expert Self Assessment development, strategic carry-back election design, and multi-year tax optimisation. EIS provides 30% income tax relief plus total CGT exemption, among Britain's most attractive investor tax relief programmes.
Complete Tax Relief Services Include:
- Self Assessment Tax Return Preparation: Professional annual return preparation incorporating all EIS income tax relief claims at 30%, precise SA108 supplementary page completion for EIS and SEIS relief, EIS3 certificate and Unique Investment Reference validation, and coordination with alternative tax reliefs (SEIS, VCT, pension contributions)
- Carry-Back Election Strategy: Prior tax year relief claiming analysis for immediate advantages, optimal carry-back timing calculation based on cross-year marginal rates, carry-back election documentation preparation, and tax refund maximisation where prior year rates proved higher
- Capital Gains Tax Exemption Tracking: Three-year holding period surveillance for each EIS investment, CGT exemption eligibility verification at exit, holding period compliance documentation, and disqualifying event absence confirmation
- CGT Deferral Relief Planning: EIS investment deployment for unlimited capital gains deferral from alternative disposals (property transactions, business exits, share sales), optimal deferral election timing analysis, coordination with additional disposal events in tax positioning, and multi-year deferral strategy formulation
- Multi-Year Tax Strategy: Extended planning across complete SEIS and EIS portfolio, annual investment capacity planning (£200,000 SEIS, £1 million EIS, potentially £2 million knowledge-intensive), relief claiming timing optimisation across multiple tax years, and integration with comprehensive wealth and tax planning
- Knowledge-Intensive Company Strategy: Knowledge-intensive EIS opportunity identification for elevated investment limits (£2 million annual relief versus £1 million), total EIS portfolio allocation maximisation, and financial adviser coordination on portfolio architecture
EIS Tax Relief Summary:
- 30% Income Tax Relief: Up to £300,000 relief per tax year on £1 million invested (£600,000 on £2 million for knowledge-intensive companies), claimable in year of investment or carried back to previous year
- 100% CGT Exemption: All capital gains after three-year holding period are completely tax-free, regardless of gain size
- CGT Deferral Relief: Defer unlimited capital gains by reinvesting into EIS companies
- Inheritance Tax Relief: After two years, EIS shares qualify for 100% Business Property Relief
- Loss Relief: If investment fails, claim loss relief against income tax or CGT, reducing effective risk
Example: £100,000 EIS Investment
- Investment amount: £100,000 into qualifying EIS company
- Income tax relief claimed: £30,000 (30% immediate relief)
- Effective cost after tax relief: £70,000
- At exit after 3 years: All capital gains completely tax-free (0% CGT)
- If investment fails: Loss relief available on £70,000 net loss (original investment minus relief received), potentially recovering up to £31,500 at 45% income tax rate
- Total downside protection: Approximately 61.5% of original investment protected through reliefs
EIS Portfolio Management and Compliance
Multiple EIS investments generate substantial administrative complexity and compliance exposure. We deliver comprehensive portfolio administration ensuring sustained compliance and tax efficiency across all positions, especially valuable for active angels with 10 or more EIS investments demanding coordinated oversight.
Complete Portfolio Services Include:
- EIS3 Certificate Management: Digital archiving and secure storage of all tax relief certificates, organisation by tax year and investment date, tracking of Unique Investment References (UIRs) for each investment, duplicate certificate request management if originals lost, and coordination with your accountant or tax adviser
- Holding Period Monitoring: Tracking of three-year holding periods for each EIS investment from share issuance date, automated alerts approaching three-year anniversaries when CGT exemption becomes available, monitoring for any company actions that might affect holding period calculations, and exit timing advice to maximise CGT exemption benefits
- Compliance Calendar Management: Automated reminders for key dates including Self Assessment filing deadlines, holding period completion dates, annual portfolio review scheduling, and company annual reports or compliance communications
- Connected Party Rule Navigation: Guidance on director appointments at portfolio companies and salary thresholds (£30,000 limit), assessment of employment offers from portfolio companies, monitoring of shareholding increases that might exceed 30% connected party thresholds, and advice on maintaining compliance whilst supporting portfolio companies
- Exit Planning and Timing: Strategic timing of exits to maximise CGT exemption benefits (after three years), coordination of multiple exits across tax years, assessment of trade sale versus IPO implications for tax treatment, and integration with broader wealth management strategy
- Multi-Year Portfolio Tax Strategy: Long-term planning considering new investments, existing holdings, and upcoming exits, annual review of portfolio performance and tax efficiency, coordination with your financial adviser or wealth manager, and integration with pension contributions, IHT planning, and other tax strategies
Portfolio Reporting and Analysis:
- Quarterly portfolio reviews with compliance status for each investment
- Annual summary of tax relief claimed across all SEIS and EIS investments
- Holding period tracker showing CGT exemption eligibility dates for each holding
- Identification of potential compliance issues requiring attention
- Tax efficiency analysis and recommendations for portfolio optimisation
Who Benefits Most from Portfolio Management:
- Active angel investors with 10 or more EIS investments requiring coordinated tracking
- Family offices building diversified growth-stage portfolios across EIS
- Successful entrepreneurs reinvesting business sale proceeds into EIS for tax efficiency and CGT deferral
- High-net-worth individuals seeking tax-efficient wealth building through growth-stage investing
- Angel syndicate members investing across multiple deals annually
- Investors balancing both SEIS and EIS portfolios across early and growth-stage companies
EIS Loss Relief Optimisation
When EIS investments fail, as some inevitably do with growth-stage ventures, proper loss relief claims can significantly reduce your overall tax liability. We calculate optimal loss relief strategies considering your complete tax position across both income tax and capital gains tax, ensuring you recover maximum value from unsuccessful investments.
How EIS Loss Relief Works:
- Allowable Loss Calculation: Your allowable loss is the amount actually invested minus the income tax relief already received (for example, £100,000 investment minus £30,000 relief equals £70,000 allowable loss)
- Two Relief Options: Loss can be offset against either income tax (at your marginal rate up to 45%) or capital gains tax (at 20% for higher rate taxpayers), whichever provides greater benefit
- Carry-Back and Carry-Forward: Losses can be carried back to previous tax years or carried forward to future years, providing flexibility in timing relief claims
- No Clawback of Initial Relief: The 30% income tax relief already claimed is not affected by the investment failing. You have permanently received that benefit
Loss Relief Calculation Example:
- Original EIS Investment: £100,000 into growth-stage company
- Income Tax Relief Received: £30,000 (30% immediate relief claimed in Self Assessment)
- Effective Investment After Relief: £70,000 (what you have actually risked)
- Company Fails Completely: Shares become worthless, total loss of investment
- Allowable Loss for Relief: £70,000 (original investment minus relief already received)
- Loss Relief Against Income Tax (45% rate): £31,500 additional tax recovered
- Total Amount Recovered: £61,500 (£30,000 initial relief plus £31,500 loss relief)
- Net Loss After All Reliefs: £38,500 on original £100,000 investment
- Effective Downside Protection: 61.5% of your original investment protected
Our Loss Relief Services:
- Precise Loss Calculation: Accurate calculation of allowable loss after initial income tax relief received, verification of share disposal documentation and worthlessness, coordination with company liquidation or administration if applicable
- Income Tax versus CGT Analysis: Detailed comparison of relief value under each option considering your marginal income tax rate, available capital gains in the relevant year, other losses or reliefs you may have, and multi-year tax position
- Optimal Timing Strategy: Analysis of claiming relief immediately versus carrying back to previous years, assessment of future year income or gains forecasts for carry-forward consideration, and coordination with other portfolio events
- Portfolio-Wide Loss Relief Planning: Coordinating loss relief claims across multiple failed investments in your portfolio, timing multiple loss claims for maximum tax efficiency, and integration with successful exits and their CGT implications
- HMRC Claims Preparation: Complete preparation of loss relief claims in Self Assessment tax returns, supporting documentation compilation, verification of disposal and relief eligibility, and response to any HMRC queries
Strategic Advantage of EIS Loss Relief:
- Creates asymmetric risk-reward profile with full upside potential and significantly reduced downside
- Makes growth-stage investing more attractive than it appears on surface risk analysis
- Enables larger portfolio construction knowing downside is partially protected
- Particularly valuable for additional-rate taxpayers (45%) who recover maximum loss relief
- Combined with income tax relief, provides one of the most tax-efficient investment structures available in the UK
- Generally more favourable effective risk than SEIS for larger investment amounts
Book Your Free EIS Consultation
Why Choose My Tax Helper for EIS?
Rather than mere application processing, we architect complete funding trajectories from SEIS through multiple EIS rounds to institutional capital or exit, guaranteeing maximized capital access while sustaining tax benefit integrity throughout.
Numerous EIS applications overlook knowledge-intensive qualification opportunities. Our R&D tax credit and innovation funding experience enables effective KI status evidence development for extended timelines and elevated limits, potentially doubling EIS capacity.
Our local advantage:
- Convenient Sutton location serving Surrey, South London, and Greater London startups
- Personal service from partners who know your business
- Available for in-person meetings at our office, not video-only like many London firms
- Deep understanding of the local startup ecosystem, investor networks, and business landscape
We Serve Both Sides of the Investment
Serving both capital-raising companies and relief-claiming investors provides distinctive insight into successful application factors. We comprehend investor expectations when developing company applications and HMRC requirements when counseling investors.
Local Presence, Specialist Expertise
Sutton-based serving Surrey and South London, we combine personal service and local accessibility with specialist EIS expertise your growth funding demands.
Systematic, Detail-Oriented Approach
EIS regulations prove complex and mistake-intolerant. Single overlooked details delay fundraising months or trigger outright rejection. Our thorough eligibility assessments identify and resolve issues before HMRC review, dramatically elevating approval probability.
Our process:
- Comprehensive upfront eligibility assessment including knowledge-intensive evaluation
- Thorough application development with supporting evidence
- Proactive HMRC correspondence administration
- Plain English communication throughout
- Complete three-year period ongoing compliance monitoring
Clear Communication, No Jargon
We translate complex tax regulations into plain English. You’ll consistently understand your process position, next steps and required actions. Zero confusing terminology, zero surprises.
Understanding SEIS
SEIS Advance Assurance Applications
Advance assurance from HMRC provides investors with confidence that your company qualifies for SEIS before they commit funds. Whilst not legally required, sophisticated angel investors universally expect advance assurance before investing and often won’t even take meetings without it in place.
We prepare comprehensive applications addressing all qualifying conditions with supporting documentation and technical appendices that satisfy HMRC’s detailed requirements.
Application preparation includes:
- Complete VCM1 form preparation: All sections completed accurately addressing each qualifying condition; clear explanations of any complex circumstances; appropriate technical detail for HMRC's specialist reviewers
- Detailed business plan: Executive summary suitable for HMRC reviewers; market analysis and competitive positioning; product/service description and unique value proposition; go-to-market strategy and revenue model; financial projections and use of proceeds; team expertise and execution capability; all tailored to HMRC's specific requirements (different from investor-facing business plans)
Fundraising Support and Investor Relations
Whilst we’re accountants rather than fundraising advisers, our SEIS expertise positions us to support your fundraising process in specific ways that improve your success probability
Investor-facing documentation support:
- SEIS tax benefits summary for investor presentations
- Q&A preparation for investor due diligence
- Term sheet review for SEIS compliance
- Investor communication templates for SEIS process
Due diligence coordination:
- Responding to investor advisers' SEIS queries
- Providing advance assurance letter and supporting documentation
- Confirming SEIS qualification during due diligence
- Technical clarifications for investor legal counsel
Frequently Asked Questions about EIS
The Enterprise Investment Scheme is the UK government’s flagship tax incentive programme designed to encourage investment in high-growth companies. EIS provides substantial tax reliefs to individual investors who invest in qualifying companies, making it easier for growth-stage businesses to raise capital.
For companies, EIS enables you to raise up to £5 million annually (£10 million for knowledge-intensive companies) and up to £12 million over your lifetime (£20 million for knowledge-intensive companies). This makes EIS one of the most powerful tools available for scaling UK businesses.
For investors, EIS offers 30% income tax relief, complete capital gains tax exemption after three years, inheritance tax relief, and loss relief if investments fail. These combined benefits create one of the most tax-efficient investment structures available in the UK.
- Under 3 years trading
- Fewer than 25 employees
- Under £350,000 gross assets
- £250,000 lifetime funding limit
- 50% income tax relief for investors
- Under 7 years trading (10 years for knowledge-intensive)
- Fewer than 250 employees (500 for knowledge-intensive)
- Under £15 million gross assets £5 million annual, £12 million lifetime funding (£10m/£20m for knowledge-intensive)
- 30% income tax relief for investors
- Up to £5 million per tax year
- Up to £12 million lifetime across all EIS rounds
- Up to £10 million per tax year
- Up to £20 million lifetime across all EIS rounds
- Salary and bonuses
- Benefits in kind (company car, private medical insurance, and similar)
- Most expense payments
- Reasonable travel expenses
- Qualifying removal expenses
- Certain trivial benefits
- UK angels and funds claiming full EIS relief
- International investors participating without tax benefits
- International investors motivated by growth potential rather than tax efficiency
- Gather company information and documents
- Prepare detailed business plan and financial projections
- Draft advance assurance application
- Review and finalise submission
- Submit application via HMRC online portal
- Receive acknowledgment from HMRC
- Wait for HMRC case officer assignment
- HMRC reviews application and supporting materials
- HMRC may request clarifications or additional information
- Multiple rounds of questions possible for complex cases
- Final decision issued by HMRC
- Complexity of your business model
- Whether you’re claiming knowledge-intensive status
- Quality and completeness of initial application
- HMRC’s current workload and seasonal variations
- Whether you have qualifying trade questions
- SME R&D Tax Relief: Up to 27% enhancement on qualifying R&D costs
- R&D Expenditure Credit (RDEC): 20% credit for larger companies or where SME scheme unavailable
- 30% income tax relief on investments
- CGT exemption after three years
- Loss relief if investments fail
- Issue share certificates to all investors
- File Companies House Form SH01 confirming share allotments
- Update share register and articles if needed
- Begin tracking use of proceeds for 70% qualifying spend
- Prepare EIS1 compliance statement covering all investments
- Submit EIS1 to HMRC Small Company Enterprise Centre
- Provide detailed information about company and investors
- Include supporting evidence for any complex points
- HMRC reviews EIS1 compliance statement
- HMRC may request additional information or clarification
- HMRC issues EIS3 certificates for each investor
- EIS3 certificates enable investors to claim tax relief
- Investors use EIS3 certificates to claim income tax relief
- Relief claimed on self-assessment tax returns
- Relief can be carried back to previous tax year if desired
- Investors retain certificates for CGT exemption in year 3+
- Monitor trading activities remain qualifying
- Track employee numbers and gross assets
- Ensure share structures remain compliant
- Maintain comprehensive records for potential HMRC review
- Avoid restricted activities during three-year period
- Investor can claim relief in 2024/25 tax return (filed by January 2026)
- Or carry back to 2023/24 tax return (filed by January 2025)
- Carrying back particularly useful if investor had higher income in previous year
- Same options as above
- Carrying back to 2023/24 allows immediate relief on return already filed
- Requires amending previous year’s return
- Company obtains EIS3 from HMRC (typically 3-6 months after investment)
- Company distributes EIS3 to investor
- Investor retains certificate for tax return
- Investor includes EIS investment details in tax return
- Attaches or references EIS3 certificate
- Claims 30% relief against income tax liability
- HMRC processes return and issues refund if applicable
- Or reduces future tax payments if applicable
- Relief typically processed within 4-8 weeks of filing
- Investor had higher income in previous year
- Investor wants relief sooner rather than later
- Previous year’s return already filed (amend and claim refund)
- Investor’s income is falling year-on-year
- Ordinary Shares for EIS Investors: Fully paid ordinary shares with no preferences, qualifying for full EIS relief
- Preference Shares for VC Investors: Separate class with liquidation preferences, anti-dilution, and other typical VC protections
- Preference shares must be genuinely separate from ordinary EIS shares
- Ordinary shares cannot be given preferential rights retrospectively
- Economic rights must be structured appropriately across classes
- Articles of association must properly provide for multiple share classes
- Investor agreements must not inadvertently affect EIS shares
- EIS investors receive proper EIS-qualifying shares
- VC investors receive their required preferences and protections
- All investors are treated fairly economically
- HMRC compliance is maintained throughout
