What Is The SEIS Scheme? Let Us Tell You!

Kevin Kholi November 23, 2020 in Business - 2 Minutes

SEIS stands for Seed Enterprise Investment Scheme. This scheme is designed to help people who have started a new business or planning to grow their small business. This scheme was first proposed by George Osborne in the year 2011. Moreover, the SEIS scheme is a major tax relief system that boosts the growth of newly opened businesses. This scheme helps the business owners by letting 50% of your money that you have invested for your business to be claimed through income tax return. Also, it provides a decent amount of tax reduction for new businesses. So, are you planning to start your new business? But being afraid to invest? Let us release your tension by providing you every needed detail about this amazing scheme.

Eligibility of SEIS

To use the benefits of SEIS you have to qualify the eligibility criteria before. Not every investor is eligible for availing this scheme. There are some eligibility criteria, such as:-

You as an investor must carry some identity proof that shows your citizenship in the UK.
There should not be any other investors as your partner. You should own a separate or independent business
Your company shouldn’t have more than 25 employees
There is an age bar that investors have to maintain. Your age should be over 18 to apply for this scheme.
Business owners must carry shares that have longevity of at least 3 years.
Investors are strictly advised not to use this scheme to avoid paying tax. You could have a deduction on tax through this scheme but for that you have to give the tax amount to the government at first.
Maximum grant for an individual business organization should be under 29% and not more than that.
You can’t avail unlimited funds through this scheme. There is a bar of investment to be made through this scheme.

Benefits of SEIS

You could raise the fund of your newly established company through this investment scheme.
Eligible business organizations can claim a decent amount of money for investing in their business through this scheme.
There could be a significant amount of tax reduction if your company qualifies under the above mentioned criteria.
It could get you above 50% income tax aid equipoise on the amount you have invested for your business.
It raises the economic growth of small businesses.

Among all the financial schemes launched by the government, SEIS has got the most number of appreciations. But before submitting your application, ensure your company meets all the above mentioned criteria.