Every guide to SEIS/EIS is written for investors. Here's the founder version: these schemes are your pricing power. A UK angel putting £10,000 into your SEIS-qualifying startup gets £5,000 back off their income tax, pays no capital gains on the win, and can offset much of a loss. Their real downside on a total wipeout is roughly 27p in the pound. That maths is why UK angels write cheques — and why not having SEIS/EIS ready effectively raises your cost of capital.

The two schemes in one breath

  • SEIS — first £250,000 raised; company under 3 years old, gross assets under £350k; investors get 50% income tax relief.
  • EIS — up to £12m lifetime (£5m/year); generally under 7 years from first commercial sale; investors get 30% relief.

Most startups raise SEIS first, EIS after — the sequencing matters, because paperwork done in the wrong order can void SEIS for everyone.

Advance assurance: do it before you pitch

Advance assurance is HMRC pre-confirming your company qualifies. It's not technically required — and practically mandatory, because most angels won't even take the meeting without it. You apply with your business plan, accounts or forecast, and details of the proposed raise. Allow 4–8 weeks. It's a standard accountant job and part of getting you investor-ready.

Founder mistakes that void relief

  • Money in before shares issued, or shares issued before money received — sequence must be exactly right on the day.
  • Redeemable or preference-heavy shares — SEIS/EIS shares must be full-risk ordinary shares.
  • Investor loans "converted" later — loans generally can't become SEIS shares.
  • Spending the money too slowly or on the wrong things — funds must be used for a qualifying trade within set time limits.
  • Missing the compliance step — after the raise you file SEIS1/EIS1; investors only get relief once certificates go out. Slow paperwork = angry angels.

If a raise is anywhere on your 12-month horizon, set the structure up now — it's dramatically easier before money moves. We handle advance assurance, share issues and compliance statements for clients on any package.