SEIS has seen a 73% increase in number of users

sme accountantThe Seed Enterprise Investment Scheme (SEIS) has seen a 73% increase in number of users over the past year.

The scheme was introduced in 2012 to help SMEs raise money to finance their businesses, working along side the Enterprise Investment Scheme (EIS).

Both of the schemes work by offering potential investors incentives to invest in small businesses. Investors are given income tax relief that is 45% of the total investment, relief against investment if the company where to close, inheritance tax relief and even more benefits.

The 73% increase has mainly occured due to start-up businesses. SEIS is being used as an alternative to traditional loans as a way to finance a new business. Oover the past two years SEIS has helped more than 1,600 SMEs raise over £135 million in investment.

However a business must meet these criteria to qualify for the SEIS/EIS:

  • They must be within a qualifying trade
  • The business should be established within the UK
  • They must be fully independent
  • The company must not have shares listed for sale
  • Assets shouldn’t be above £200,000
  • The business should be under two years old
  • The business must have less than 25 employees

Despite both the schemes success there has been calls for changes. Business consultants are requesting that the three year £150,000 limit on an investment is increased, arguing that many small businesses are still struggling for cash.

If you are a small business owner who meets the requirements for the SEIS there is more detailed information on the HM Revenue and Customs website.

MCC Accountants are specialists in small business accounting offering services such as tax advice and cashflow and credit management. For advice on SME accounting do not hesitate to contact us, call us on 0161 707 1500 for more information.

Posted in

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.