Do I need SEIS/EIS Advance Assurance?

If you're still looking for investors or are in the early stages, then Advance Assurance will help you when you are pitching to potential investors. Most SEIS/EIS investors require the company to have Advance Assurance from HMRC before they invest. If your investors are willing to invest regardless of tax relief, then you don't need to worry about applying for Advance Assurance. Find out whether your investors are eligible for SEIS and what the benefits are for them.

Do I need SEIS Advance Assurance or EIS Advance Assurance?

It mainly depends on how big and established your company is. Smaller startups can use the Seed Enterprise Investment Scheme (SEIS) to give their investors a greater rate of tax relief for coming in at an early, and riskier, stage. Larger companies - and SEIS-qualifying companies that have reached the SEIS limits - can raise under the Enterprise Investment Scheme (EIS). Find out more about the differences between SEIS and EIS .

How do I find out if my company is eligible for SEIS and/or EIS?

Check our complete guides to SEIS and EIS for full details about the schemes.

What are the changes to SEIS from April 2023?

In autumn 2022, the government announced changes to the Seed Enterprise Investment Scheme, to come into effect from 6 April 2023: raise up to £250,000 in SEIS investment (up from £150,000) raise with SEIS for up to three years from when you first started trading (up from two years) raise SEIS with company gross assets up to £350,000 (previously £200,000) individual investors can now invest up to £200,000 in any tax year (up from £100,000) For the full details, read our post: Raise £250K SEIS now - but wait until July to do SEIS Compliance

Why should I apply for SEIS/EIS Advance Assurance through SeedLegals?

Our combined expert support and automated workflow help to streamline the process. Our SEIS/EIS experts are with you every step of the way and can guide you through the process from start to finish – unlimited support is included at no extra cost. At the end of the process once your documents are finalised, we will also submit on your behalf on HMRC’s website. It’s free to sign up and get started.

How long does Advance Assurance take?

It takes roughly 30 minutes to complete the application on our platform. Please allow for one to two weeks for our team to review and to make any changes needed before we submit it. Then the rest of the time is with HMRC (they take about 15 days).

What documents do I need for the application?

As a minimum you'll need to send HMRC your: - business plan or pitch deck - 3 year projected financials - Share Register You should also be prepared to send your: - Company accounts or bank statement - details of previous investment and/or grants - letter of engagement from your crowdfunding/investment partner - Articles of Association - Investment Proposal / Term Sheet

Do I need to create a new business plan for my SEIS/EIS application?

To get SEIS/EIS approval it’s important that you show how your business meets HMRC’s risk to capital condition . That means, while you want to play up the reward part of the risk/reward equation to investors, you want to do the opposite to HMRC. Below, we’ve listed a few resources to help you create your business plan for your SEIS/EIS application: - What to include in your business plan for SEIS/EIS advance assurance - How to address the SEIS/EIS risk to capital requirement in your application - Common mistakes to look out for in your SEIS/EIS business plan Remember, a SeedLegals SEIS/EIS expert will review all the materials you send so you can be confident your application meets all the requirements.

What are the excluded activities that stop my company from being SEIS/EIS eligible?

This is a long list but the most common are: legal services, financial services, leasing / renting, energy, property development and agriculture. Read more about what counts as an SEIS/EIS qualifying trade .

We incorporated over 2 years ago, can we qualify?

Yes! For SEIS you need to prove that you haven't been 'trading' for longer than two years and for EIS you have to be within seven years of your first commercial sale. From 6 April 2023, for SEIS this time limit for trading is changing from two years to three years . But until around July 2023, you'll only be able to get SEIS Advanced Assurance if you've been trading for less than two years - to find out more, read our post . To see what counts as trading for HMRC, read our post, What is 'trading' for SEIS and EIS?

Why do I need to give the details of a potential investor?

HMRC introduced this to the SEIS/EIS application process to deter speculative applications from companies that weren’t yet ready to raise. There’s no obligation for the investor you name to actually invest. You can change the name of the investor and their investment amounts at any time. But don’t just make an investor up. It’s better to find investors who are, on balance, likely to invest and to get their permission first. To see who’s eligible to invest under SEIS and EIS, go to SEIS rules for investors .

How long does SEIS/EIS Advance Assurance last?

There’s no expiry date for SEIS and EIS Advance Assurance. But, when your company no longer meets the SEIS/EIS eligibility criteria (which includes a limit on how long you’ve been trading for), you won’t be able to offer SEIS/EIS tax relief to your investors.

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SEIS/EIS Advance Assurance

Get investment ready with SEIS/EIS Advance Assurance

SEIS and EIS Advance Assurance makes you dramatically more investable. Use SeedLegals to apply for Advance Assurance and get approved fast.

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2/3

of UK angel investors only invest in SEIS/EIS eligible startups.
98%

success rate through SeedLegals vs. 62% industry average (HMRC stats)

SEIS is a win-win for you and your investors

Find out why founders use SeedLegals to certify their SEIS status. Our CEO Anthony Rose explains what SEIS is, why it’s so important and how you can use it to attract investment.

Clear, easy steps to SEIS/EIS approval

Apply for SEIS/EIS in a simple and intuitive workflow

Get your SEIS/EIS Advance Assurance application handled by the experts. We generate your completed application, check it’s ready to go and submit it to HMRC for you.

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We make sure your application complies with the latest HMRC guidelines (even the ones they don’t tell you about!) to get you the most reliable approval possible.

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Not sure if you meet the SEIS/EIS criteria? Need help with your supporting documents? Our team of SEIS/EIS specialists is here to help.

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How to apply for SEIS/EIS Advance Assurance

Fill in company details

To get started, you’ll need your UTR (Unique Taxpayer Reference number), Companies House number and the date your company incorporated.
Add details of potential investors

HMRC needs the name, address and intended investment amount of one or more investors to cover 25% of your raise.
Appoint SeedLegals as your agents

Give us permission to submit your application and communicate with HMRC for you.
Upload your docs

Add your business plan/pitch deck and other supporting documents to the application.
Get an expert review

Our team checks everything is 100% HMRC-ready.
Submit through SeedLegals and relax

We handle the comms with HMRC and update you when it’s approved.

More resources on the SEIS and EIS schemes

Raise £250K SEIS now - but wait until July 2023 to do SEIS Compliance

What are SEIS & EIS? The essential guide for UK startups

SEIS: Guide to the Seed Enterprise Investment Scheme

SEIS and EIS success stories

First time founder closes £80K fundraise for My Road To Wembley in 4 months

2iC-Care closes £990k deal in just 2 months using top-up funding

Sweet Analytics raises £1.4M using flexible top-ups

FAQs

Frequently asked questions about SEIS/EIS Advance Assurance

Do I need SEIS/EIS Advance Assurance?

If you're still looking for investors or are in the early stages, then Advance Assurance will help you when you are pitching to potential investors.

Most SEIS/EIS investors require the company to have Advance Assurance from HMRC before they invest. If your investors are willing to invest regardless of tax relief, then you don't need to worry about applying for Advance Assurance.

Find out whether your investors are eligible for SEIS and what the benefits are for them.
Do I need SEIS Advance Assurance or EIS Advance Assurance?

It mainly depends on how big and established your company is. Smaller startups can use the Seed Enterprise Investment Scheme (SEIS) to give their investors a greater rate of tax relief for coming in at an early, and riskier, stage.

Larger companies - and SEIS-qualifying companies that have reached the SEIS limits - can raise under the Enterprise Investment Scheme (EIS).

Find out more about the differences between SEIS and EIS.
How do I find out if my company is eligible for SEIS and/or EIS?

Check our complete guides to SEIS and EIS for full details about the schemes.
What are the changes to SEIS from April 2023?
In autumn 2022, the government announced changes to the Seed Enterprise Investment Scheme, to come into effect from 6 April 2023:
- raise up to £250,000 in SEIS investment (up from £150,000)
- raise with SEIS for up to three years from when you first started trading (up from two years)
- raise SEIS with company gross assets up to £350,000 (previously £200,000)
- individual investors can now invest up to £200,000 in any tax year (up from £100,000)
For the full details, read our post: Raise £250K SEIS now - but wait until July to do SEIS Compliance
Why should I apply for SEIS/EIS Advance Assurance through SeedLegals?

Our combined expert support and automated workflow help to streamline the process. Our SEIS/EIS experts are with you every step of the way and can guide you through the process from start to finish – unlimited support is included at no extra cost.

At the end of the process once your documents are finalised, we will also submit on your behalf on HMRC’s website. It’s free to sign up and get started.
How long does Advance Assurance take?

It takes roughly 30 minutes to complete the application on our platform. Please allow for one to two weeks for our team to review and to make any changes needed before we submit it.

Then the rest of the time is with HMRC (they take about 15 days).
What documents do I need for the application?

As a minimum you'll need to send HMRC your:
- business plan or pitch deck
- 3 year projected financials
- Share Register

You should also be prepared to send your:
- Company accounts or bank statement
- details of previous investment and/or grants
- letter of engagement from your crowdfunding/investment partner
- Articles of Association
- Investment Proposal / Term Sheet
Do I need to create a new business plan for my SEIS/EIS application?

To get SEIS/EIS approval it’s important that you show how your business meets HMRC’s risk to capital condition.

That means, while you want to play up the reward part of the risk/reward equation to investors, you want to do the opposite to HMRC.

Below, we’ve listed a few resources to help you create your business plan for your SEIS/EIS application:
- What to include in your business plan for SEIS/EIS advance assurance
- How to address the SEIS/EIS risk to capital requirement in your application
- Common mistakes to look out for in your SEIS/EIS business plan

Remember, a SeedLegals SEIS/EIS expert will review all the materials you send so you can be confident your application meets all the requirements.
What are the excluded activities that stop my company from being SEIS/EIS eligible?

This is a long list but the most common are: legal services, financial services, leasing / renting, energy, property development and agriculture.

Read more about what counts as an SEIS/EIS qualifying trade.
We incorporated over 2 years ago, can we qualify?

Yes! For SEIS you need to prove that you haven't been 'trading' for longer than two years and for EIS you have to be within seven years of your first commercial sale.

From 6 April 2023, for SEIS this time limit for trading is changing from two years to three years. But until around July 2023, you'll only be able to get SEIS Advanced Assurance if you've been trading for less than two years - to find out more, read our post.

To see what counts as trading for HMRC, read our post, What is 'trading' for SEIS and EIS?
Why do I need to give the details of a potential investor?

HMRC introduced this to the SEIS/EIS application process to deter speculative applications from companies that weren’t yet ready to raise.

There’s no obligation for the investor you name to actually invest. You can change the name of the investor and their investment amounts at any time. But don’t just make an investor up. It’s better to find investors who are, on balance, likely to invest and to get their permission first.

To see who’s eligible to invest under SEIS and EIS, go to SEIS rules for investors.
How long does SEIS/EIS Advance Assurance last?

There’s no expiry date for SEIS and EIS Advance Assurance.

But, when your company no longer meets the SEIS/EIS eligibility criteria (which includes a limit on how long you’ve been trading for), you won’t be able to offer SEIS/EIS tax relief to your investors.

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