Raise Up to £250,000 for Your Startup with 50% Investor Tax Relief
Transform your fundraising by offering investors 50% income tax relief
through the Seed Enterprise Investment Scheme. Based in Sutton and serving Surrey and London, we guide ambitious founders through HMRC advance assurance, compliance, and successful funding rounds.
SEIS Accountants Helping Early-Stage Startups Raise Up to £250,000 with 50% Investor Tax Relief
The Seed Enterprise Investment Scheme (SEIS) is the UK’s most generous tax relief for early-stage startups, offering investors 50% income tax relief and making your first funding round significantly more attractive to angel investors. Based in Sutton and serving Surrey, South London and across the UK, My Tax Helper specialises in SEIS applications, compliance, and strategic planning for ambitious early-stage companies.
Whether you’re raising your first external investment or you’re an investor seeking tax-efficient early-stage opportunities, our SEIS specialists guide you through every stage from eligibility assessment and HMRC advance assurance to share issuance and three-year compliance monitoring.
Book Your Free SEIS Consultation
What Is SEIS and Why Does It Matter?
The Seed Enterprise Investment Scheme is a government initiative designed to encourage investment in very early-stage UK companies by offering substantial tax reliefs to investors. SEIS makes your startup’s investment opportunity dramatically more attractive, effectively allowing investors to participate at half the cost after immediate tax relief.
SEIS Eligibility Checker
Answer these questions to see if your company qualifies for SEIS funding
By My Tax Helper | Sutton, Surrey
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 3 years when SEIS shares are issued. "Trading" starts when you make your first sale, not when you incorporated.
Company Size Thresholds
SEIS has limits on company size to target early-stage businesses
Important: Your gross assets must be under £350,000 before SEIS investment and under £500,000 after. Timing of fundraising relative to asset acquisition matters.
Previous Funding History
Tell us about any previous investment or government support
Good to know: R&D tax credits and certain grants are fine alongside SEIS. However, you cannot have received EIS or VCT funding before SEIS (but you can do SEIS first, then EIS later).
Trading Activities
SEIS excludes certain types of businesses
Requirement: At least 70% of your trading activities must occur within the UK. Most tech and service businesses with international customers still qualify if their teams and operations are UK-based.
Shareholder Structure
Final questions about your company structure and shareholders
Connected party rules: Founders who are directors or employees typically cannot claim SEIS relief on their own investments (though they can invest in subsequent EIS rounds). External investors are not affected.
The SEIS Advantage for Your Startup
Transform Your Investment Proposition
Investors receive 50% income tax relief immediately, meaning a £100,000 investment costs them just £50,000 after tax relief. This transforms your risk-reward profile and makes you competitive against other early-stage opportunities.
Access to Angel Investors and Networks
SEIS status opens doors to angel networks, high-net-worth individuals, and angel syndicates who actively seek SEIS opportunities. Many experienced angels won’t consider non-SEIS investments at the seed stage and you’re immediately excluded from consideration without it.
Simplified Funding Terms
Unlike venture capital, SEIS investments don’t typically require complex preference shares, liquidation preferences, or aggressive anti-dilution provisions. Investors are motivated by tax benefits rather than downside protection, allowing cleaner cap tables and more founder-friendly terms.
Credibility and Validation
Securing HMRC advance assurance demonstrates that your business model is viable, your company is properly structured, and you meet strict qualifying criteria. This validation extends beyond fundraising to customer and supplier relationships.
Gateway to Further Funding
A successful SEIS round provides runway to reach meaningful milestones, positioning you for subsequent EIS funding (up to £5 million annually) or institutional venture capital. SEIS is often the first step in a multi-round funding journey.
Government Support Access
SEIS status can open doors to other government schemes including the British Business Bank’s Angel Co-Fund, which can match private SEIS investment pound-for-pound, effectively doubling your funding round.
Lets understand SEIS
SEIS Eligibility Assessment and Strategic Planning
Before you approach investors or begin fundraising, we conduct comprehensive eligibility assessment covering all HMRC qualifying conditions. This reveals issues that can be resolved with advance planning—issues that would otherwise cause rejection or costly delays once you've already started fundraising.
Comprehensive Assessment Covers:
- Company Age & Trading Status: Calculating your exact trading commencement date and remaining SEIS window (must be under 3 years trading)
- Gross Assets Analysis: Complete valuation of all assets including tangibles, intangibles, IP, WIP, debtors, and cash—ensuring you're under the £350,000 limit before investment (£500,000 after)
- Employee FTE Calculation: Precise full-time equivalent calculation across all employees including part-timers, contractors, and subsidiary employees (must be fewer than 25 FTE)
- Qualifying Trade Review: Detailed assessment of your business activities against HMRC's excluded trades list (property development, financial services, legal/accountancy, etc.)
- Previous Funding Analysis: Documentation of all previous investment, grants, subsidised loans, and state aid to confirm remaining SEIS capacity (£250,000 lifetime limit)
- Shareholder Structure Review: Connected party identification (directors, employees, 30%+ shareholders) and family/associate relationship mapping
- "Preparing to Trade" Evidence: For pre-revenue companies, compiling proof of genuine business activities underway (MVP development, customer testing, product roadmap)
- Use of Proceeds Planning: Structuring your planned expenditure to meet HMRC's "growth and development" requirements (70% must be spent within 2 years)
- Permanent Establishment Confirmation: Verifying UK-based operations, management, and control even if you trade internationally
- Timeline Planning: Optimal timing for application, fundraising, share issuance, and potential follow-on EIS rounds
What You Receive:
- Comprehensive eligibility report covering all qualifying conditions
- Identification of any issues with recommended solutions
- Timeline for resolving issues before application if needed
- Confirmation of readiness to proceed with advance assurance application
- Strategic advice on funding sequence (SEIS now, EIS later)
Key Thresholds: Under 3 years trading | Gross assets under £350,000 | Fewer than 25 employees (FTE) | Maximum £250,000 lifetime SEIS funding | Qualifying trade only | No prior EIS/VCT funding
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—and most won't even take meetings without it in place. We prepare comprehensive applications that satisfy HMRC's detailed requirements.
Complete Application Package Includes:
- VCM1 Form Preparation: Complete application form addressing all qualifying conditions with clear, compelling explanations tailored to HMRC's requirements
- HMRC-Focused Business Plan: Detailed business plan covering market analysis, competitive positioning, product/service description, revenue model, financial projections, team expertise, and use of proceeds—specifically structured for HMRC reviewers (different from investor-facing plans)
- Technical Appendices: Supporting documents addressing qualifying trade analysis, new trade evidence, substantial UK activities breakdown, gross assets calculations with schedules, employee FTE workings, previous funding declarations, and state aid position
- "Preparing to Trade" Evidence: For pre-revenue companies, comprehensive evidence of genuine business activities including product development timelines, MVP testing, customer validation, team activities, and go-to-market preparation
- Supporting Documentation Coordination: Articles of association, recent accounts or management accounts, shareholder register, employee contracts and schedules, IP documentation (patents, trademarks, development records), and supplier/partner agreements
- 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: 2-4 weeks to compile comprehensive application with all supporting documentation
- HMRC Processing: 3-5 weeks for straightforward applications; 6-8 weeks for complex cases involving novel trades, group structures, or borderline qualifying conditions
- Advance Assurance Letter: Upon approval, you receive HMRC's confirmation letter to share with investors during fundraising
- Validity Period: Advance assurance typically remains valid for approximately 12 months provided circumstances don't change materially
What Happens After Approval:
- You can confidently approach investors showing HMRC confirmation of SEIS status
- Investors have certainty they'll receive 50% income tax relief on their investment
- Your fundraising success probability increases dramatically with advance assurance in hand
- You can close your round and issue shares knowing compliance statements will be approved
Three-Year SEIS Compliance Monitoring
SEIS status must be maintained throughout the three-year holding period from the date shares were issued. Certain company actions during this period trigger "disqualifying events," requiring investors to repay their 50% income tax relief to HMRC. We provide continuous compliance monitoring, annual reviews, and proactive flagging of potential disqualifying events.
Comprehensive Compliance Monitoring Includes:
- Annual Compliance Health Checks: Full review of company activities, structure, and operations; confirmation that qualifying trade continues unchanged; gross assets and employee count monitoring; share structure and rights verification; parent-subsidiary relationship reviews; and assessment against all disqualifying event triggers
- Proactive Disqualifying Event Prevention: Identification of potential issues before they become problems; advance warning of proposed actions that might affect compliance; guidance on structuring decisions to preserve SEIS status; and investor impact assessment for any potential compliance issues
- Trade Change Assessment: Evaluation of business evolution and natural growth; determination of whether changes constitute disqualifying trade changes; assessment of new products, services, or business lines; and guidance on permissible evolution vs disqualifying changes
- Follow-On Funding Round Planning: Strategic planning for next funding round whilst preserving SEIS compliance; transition planning from SEIS to EIS for larger rounds; gross assets management approaching £350,000 threshold; employee count trajectory toward 25 FTE limit; and coordination of SEIS investor holding periods with new EIS investment
- Share Structure Modifications Review: Assessment of proposed share splits, consolidations, or reorganisations; evaluation of new share classes or preference share introductions for VCs; review of rights modifications or shareholder agreements; and guidance on maintaining SEIS-compliant ordinary share structure
- Acquisition, Merger, and Exit Advisory: Guidance on acquiring other businesses without triggering disqualification; assessment of merger proposals and their SEIS compliance implications; exit structuring to preserve investor tax benefits where possible; and trade sale or IPO planning considering three-year holding periods
Common Disqualifying Events We Monitor For:
- Ceasing the qualifying trade or making significant trade changes outside the original scope
- Issuing shares that aren't fully paid ordinary shares (preference shares, redeemable shares, etc.)
- Share buy-backs, redemptions, or capital repayments to shareholders
- Granting preferential rights to assets on winding up not present at share issuance
- Exceeding gross asset limits (£350k pre-investment, £500k post-investment) through follow-on funding
- Exceeding 25 FTE employee limit through team expansion
- Becoming a member of a partnership or creating control relationships with other companies
- Substantial property dealing or exceeding property-related income thresholds
- Becoming an excluded trade or exceeding excluded activity income limits
- Receiving other prohibited forms of state aid or venture capital investment
Annual Deliverables:
- Annual compliance report confirming ongoing SEIS status and investor relief security
- Identification of any concerns or potential issues requiring attention
- Recommended actions to maintain compliance throughout the remainder of the holding period
- Investor communication materials confirming compliance where requested
SEIS Tax Relief Claims and Optimisation
We help angel investors and high-net-worth individuals maximise tax relief across their SEIS investment portfolios through expert Self Assessment preparation, strategic carry-back election planning, and multi-year tax optimisation. SEIS offers 50% income tax relief plus complete CGT exemption—the UK's most generous tax reliefs for investors.
Complete Tax Relief Services Include:
- Self Assessment Tax Return Preparation: Expert preparation of annual tax returns including all SEIS income tax relief claims at 50%, accurate completion of SA108 supplementary pages for EIS/SEIS relief, verification of SEIS3 certificates and Unique Investment References, and coordination with other tax reliefs (EIS, VCT, pension contributions)
- Carry-Back Election Strategy: Analysis of claiming relief against previous tax years for immediate benefit, calculation of optimal carry-back timing based on marginal rates across years, preparation of carry-back election documentation, and maximisation of tax refunds where previous year rates were higher
- Capital Gains Tax Exemption Tracking: Monitoring of three-year holding periods for each SEIS investment, confirmation of CGT exemption eligibility at exit, documentation of compliance throughout holding period, and verification that no disqualifying events have occurred
- CGT Deferral Relief Planning: Using SEIS investments to defer unlimited capital gains from other disposals (property sales, business exits, share sales), timing analysis for optimal deferral election, coordination with other disposal events in your tax position, and multi-year deferral strategy development
- 50% CGT Reinvestment Relief: Claiming additional 50% CGT exemption when reinvesting capital gains into SEIS, calculation of reinvestment relief on gains before the three-year holding period, and coordination with income tax relief claims
- Multi-Year Tax Strategy: Long-term planning across your entire SEIS and EIS investment portfolio, annual investment capacity planning (£200,000 SEIS, £1 million EIS), optimisation of relief claiming timing across multiple tax years, and integration with overall wealth and tax planning
SEIS Tax Relief Summary:
- 50% Income Tax Relief: Up to £100,000 relief per tax year on £200,000 invested, 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
- 50% CGT Exemption on Reinvestment: Additional 50% CGT relief when reinvesting gains from other assets into SEIS
- CGT Deferral Relief: Defer unlimited capital gains by reinvesting into SEIS companies
- Loss Relief: If investment fails, claim loss relief against income tax or CGT, reducing effective risk
Example: £100,000 SEIS Investment
- Investment amount: £100,000 into qualifying SEIS company
- Income tax relief claimed: £50,000 (50% immediate relief)
- Effective cost after tax relief: £50,000
- At exit after 3 years: All capital gains completely tax-free (0% CGT)
- If investment fails: Loss relief available on £50,000 net loss (original investment minus relief received), potentially recovering up to £22,500 at 45% income tax rate
- Total downside protection: Approximately 72.5% of original investment protected through reliefs
SEIS Portfolio Management and Compliance
Managing multiple SEIS investments creates significant administrative complexity and compliance risk. We provide comprehensive portfolio management ensuring you remain compliant and tax-efficient across all holdings—particularly valuable for active angel investors with 10+ SEIS investments requiring coordinated tracking.
Complete Portfolio Services Include:
- SEIS3 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 SEIS 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 their impact on SEIS status, 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 vs 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+ SEIS investments requiring coordinated tracking
- Family offices building diversified early-stage portfolios across SEIS and EIS
- Successful entrepreneurs reinvesting business sale proceeds into SEIS for tax efficiency
- High-net-worth individuals seeking tax-efficient wealth building through early-stage investing
- Angel syndicate members investing across multiple deals annually
SEIS Loss Relief Optimisation
When SEIS investments fail—as some inevitably do with early-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 SEIS Loss Relief Works:
- Allowable Loss Calculation: Your allowable loss is the amount actually invested minus the income tax relief already received (e.g., £100,000 investment minus £50,000 relief = £50,000 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 50% income tax relief already claimed is not affected by the investment failing—you've permanently received that benefit
Loss Relief Calculation Example:
- Original SEIS Investment: £100,000 into early-stage company
- Income Tax Relief Received: £50,000 (50% immediate relief claimed in Self Assessment)
- Effective Investment After Relief: £50,000 (what you've actually risked)
- Company Fails Completely: Shares become worthless, total loss of investment
- Allowable Loss for Relief: £50,000 (original investment minus relief already received)
- Loss Relief Against Income Tax (45% rate): £22,500 additional tax recovered
- Total Amount Recovered: £72,500 (£50,000 initial relief + £22,500 loss relief)
- Net Loss After All Reliefs: £27,500 on original £100,000 investment
- Effective Downside Protection: 72.5% 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 vs 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 vs carrying back to previous years, assessment of future year income/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 SEIS Loss Relief:
- Creates asymmetric risk-reward profile: full upside potential with significantly reduced downside
- Makes early-stage angel 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
Book Your Free SEIS Consultation
Why Choose My Tax Helper for SEIS?
We’re based in Sutton with deep roots in the Surrey and South London business community. Unlike large London firms where you’re just a client number, we provide genuinely personal service from partners who understand your local market. Whether you prefer face-to-face meetings at our Sutton office or remote consultations across the UK, you’ll work directly with experienced SEIS specialists who take the time to understand your business and growth ambitions.
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
Most accountants focus solely on companies raising funding, treating SEIS as a checkbox exercise. We’re different. We specialise in helping both startups seeking investment and investors claiming tax relief—giving us unique dual-perspective insight that dramatically improves application success rates.
This dual expertise means we understand exactly what investors need to see when preparing company applications, and we understand precisely what HMRC requires when advising investors on compliance. We speak both languages fluently, positioning your application for success whilst ensuring investors are confident in the tax benefits they’ll receive.
Systematic, Detail-Oriented Approach
SEIS rules are complex and unforgiving of mistakes. A single overlooked detail can delay your fundraising by months or result in outright rejection. Our comprehensive eligibility assessments identify and resolve issues before HMRC ever sees them, dramatically increasing your approval probability and accelerating your path to funding.
Our process:
- Thorough upfront eligibility review
- Detailed application preparation with supporting evidence
- Proactive HMRC correspondence management
- Clear communication in plain English throughout
- Ongoing compliance monitoring for the full three-year period
Clear Communication, No Jargon
We explain complex tax rules in plain English. You’ll always understand where you are in the process, what’s happening next, and what actions you need to take. No confusing jargon, no 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
Common SEIS Questions Answered
HMRC typically responds within 3-5 weeks for straightforward applications. Complex cases may take 6-8 weeks. We expedite the process by ensuring complete, accurate documentation at submission, minimising back-and-forth with HMRC.
Legally no, but practically yes. Sophisticated angel investors won’t commit funds without advance assurance. Some inexperienced investors may proceed without it, but you’ll severely limit your investor pool. We strongly recommend securing advance assurance before serious fundraising begins.
Rejection is rare when applications are properly prepared. If HMRC raises concerns, we work with you to address their queries through clarification, additional evidence, or, if necessary, restructuring your business to qualify. Our thorough eligibility assessment minimises rejection risk by resolving issues before HMRC sees them.
Generally no. Founders who are directors or employees (receiving more than £200 annually) cannot claim SEIS relief on their own companies. There are very limited exceptions, but in practice, founders typically wait until subsequent EIS rounds to invest (where director investment is permitted under certain conditions).
This depends on their relationship to connected parties. Spouses, parents, children, and siblings of directors/employees are generally excluded from claiming SEIS relief. More distant relatives may be able to invest if they’re not otherwise connected to the company.
Exceeding the limit before investment disqualifies you from SEIS. We help you manage assets carefully by timing large customer receipts, deferring asset purchases, and planning fundraising to avoid breaching the threshold. If you’re close to the limit, it may be time to transition to EIS instead (£15 million gross assets limit).
Absolutely yes. SEIS and R&D tax credits are fully compatible and complementary. In fact, they work well together, SEIS funds your development work, and R&D tax credits provide additional cash after the fact. We coordinate both, ensuring you maximise all available government support.
Trading begins when you start carrying on your business trade—typically when you make your first commercial sale or begin delivering services to customers. It’s not incorporation date. Pre-revenue activities like product development, testing, and business planning are “preparing to trade,” not trading. We calculate your precise trading commencement date.
Only UK-registered companies with a permanent establishment in the UK qualify. However, international founders can establish UK companies that qualify for SEIS. Many immigrant entrepreneurs successfully use SEIS to fund UK operations.
If your company is acquired within three years of share issuance, investors typically lose their income tax relief (must repay it to HMRC) unless the acquisition qualifies under specific rules. Acquisitions by other EIS/SEIS-qualifying companies with share consideration may preserve relief. We plan exits to preserve tax benefits where possible.
SEIS shares must be ordinary shares with no preferential rights to assets on winding up. If you have other investors (angels, VCs) who require preference shares, you’ll need separate share classes—ordinary shares for SEIS investors and preference shares for others. We help you structure this appropriately.
