EIS Experts

Plan Early for a Smooth Application Process

Some EIS eligibility criteria come into play up to two years before you seek investment. Failing to meet these conditions could jeopardise your qualification, and in many cases, mistakes cannot be undone. To maximise your chances of success, seek professional advice early in your business journey to avoid pitfalls that could hinder future fundraising efforts.

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Obtain Advance Assurance

While not mandatory, advance assurance from HMRC significantly enhances your credibility with potential investors. Many investors will only consider funding businesses that have obtained this assurance. HMRC typically takes 8-12 weeks to process applications, though a well-prepared submission can sometimes receive a quicker decision. Incomplete applications, on the other hand, may result in delays, so it’s essential to ensure accuracy and completeness.

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Demonstrate Growth and Development

HMRC has tightened its focus on the growth and development requirements for EIS. Your business must demonstrate a clear trajectory for expansion and articulate this effectively in your application. Failing to convincingly present your growth plans could result in rejection.

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Allocate Funds Correctly

Raising investment is just the first step; HMRC requires transparency on how funds are utilised. There are strict guidelines on eligible expenditures, and any discrepancies in your application could cause delays. Seeking expert guidance when drafting your application ensures compliance and reassures potential investors.

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Present a Clear Business Plan

A well-structured business plan is essential when applying for EIS. HMRC needs to understand your objectives, and clarity is key. Avoid vague assumptions and ensure that your business plan aligns with EIS requirements to streamline the approval process.

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Maintain Ongoing Compliance

Securing investment is not the end of your EIS obligations. Compliance rules apply for three years post-investment, covering aspects such as share structure changes, additional fundraising, and shareholder services. Non-compliance can lead to the withdrawal of tax relief, damaging investor relations and potentially leading to legal complications. Staying informed of these responsibilities safeguards your business and investor confidence.

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Expert Guidance for Your Growth Journey

EIS Experts specialise in helping businesses navigate EIS applications, ensuring compliance and maximising investment opportunities. If you need assistance in preparing your application or understanding ongoing responsibilities, get in touch with our team for expert support.