Limited company guide
How SEIS and EIS work for UK startups, limits, conditions, advance assurance, the order of events, and the mistakes that disqualify a round.
Written and reviewed by Waqas Sagar Member of ICAEW, Fellow of ACCA, Fellow of AAT, a double graduate and entrepreneur at heart, helping startups grow and serving thousands of businesses nationwide with an excellent team. Published by LimitedCompany.Accountants, 12 London Road, Morden, London SM4 5BQ. Reviewed 12 September 2026 against 2026/27 UK rates and current Companies House and HMRC guidance.
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Xero Gold PartnerCertified advisor
QuickBooks PartnerCertified ProAdvisor100+ yearsCombined team experienceFully insuredUp to £2m indemnitySEIS and EIS give individual investors income tax relief and capital gains advantages for backing early-stage UK companies. For founders, that means a materially easier fundraise, many UK angels simply will not invest without them.
What the schemes do
Advance assurance
The order of events matters
What can go wrong later
SEIS and EIS give individual investors income tax relief and capital gains advantages for backing early-stage UK companies. For founders, that means a materially easier fundraise, many UK angels simply will not invest without them.
SEIS is for the earliest stage: up to £250,000 lifetime, within three years of the trade starting, gross assets under £350,000 and fewer than 25 employees. EIS follows with larger limits and its own conditions.
Advance assurance is HMRC's indication that a proposed share issue would qualify. It is not compulsory, but it is what investors ask for, and getting it takes weeks, so apply before you start raising, not after a term sheet.
The application needs the business plan, financial forecasts, the proposed share structure and details of the investors approached. Weak applications get rejected on avoidable structural points.
Shares must be new, fully paid ordinary shares with no preferential rights to assets, issued for cash, and the money must be spent on the qualifying trade within the time limits. Convertible instruments converting on the wrong terms, or a founder loan converting into the same round, are frequent disqualifiers.
After the shares are issued and the trading condition is met, the company files a compliance statement so HMRC can issue certificates. Investors cannot claim relief until they hold those certificates, so delays here are felt personally by the people who backed you.
Relief can be withdrawn by events after the raise: a share buyback, certain preferential rights created later, a change of trade, or inserting a non-qualifying parent company such as a US holdco without care.
Before any restructure, check the effect on existing SEIS and EIS investors. Losing relief for the people who funded your first round is a reputational cost as well as a financial one for them.
Local help
We work with company directors across London and Surrey from our office at 12 London Road, Morden, London SM4 5BQ. Pick your area, or send the form below and we will call you back.
Frequently asked
Yes, commonly, SEIS first up to its limit, EIS above it, usually with the SEIS shares issued before or on the same day, in the correct order. Sequencing errors are the classic mistake.
No. It is based on what you told HMRC. If the actual share issue or trade differs, the assurance does not protect the position.
No. Excluded activities include property development, most financial services, leasing, legal and accountancy services, and energy generation benefiting from subsidies. Check early if your model is close to a boundary.
Three years from issue, or from the start of the trade if later. Selling earlier claws the income tax relief back.
Keep bank statements, sales and platform reports, purchase invoices, payroll records, VAT workings, finance agreements and Companies House correspondence. We confirm the exact list at onboarding and identify gaps before a filing deadline becomes urgent.
The fee depends on transaction volume, record quality, VAT and payroll requirements, historic catch-up and the level of reporting needed. We agree a fixed scope and price before technical work starts, with published packages available on our fees page.
Yes. We request professional clearance, collect the prior records and authorities, check the next Companies House and HMRC deadlines, and give you one clear handover list. The process is normally completed remotely.
Yes. We work through secure cloud records, scheduled reviews and digital approvals, while keeping a named team available by phone, video call and email. Clients can also visit our Morden office by appointment.
We regularly work with Xero, QuickBooks, FreeAgent, Sage and connected sales or expense apps. The right setup depends on transaction volume, integrations and the reports you need, not simply the software brand.
The relevant calendar may include annual accounts, Corporation Tax payment and return dates, confirmation statements, VAT returns, payroll submissions and Self Assessment. We map the dates from your company year end and registrations.
Included approach
Check the current rules
Deadlines, thresholds and filing rules change. GOV.UK and Companies House publish the current statutory position; advice should then be applied to your company’s circumstances.
Talk to an accountant
Share your next deadline, accounting problem or growth question. We will reply with a clear next step and quote any technical work before it begins.
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Pick a time that suits you and a qualified accountant will call you about your company, deadlines and fees.
Appointments run monday to friday, 9:00am to 5:30pm. Your confirmation is emailed straight away.
