The process of claiming S/EIS is much the same for both. We don’t conduct raises with SEIS support on Crowdcube so here is an overview for how it works for EIS, including what goes on behind the scenes on the part of the company and HMRC:
1. Make sure that the company qualifies for EIS. The company must fulfil the criteria above (“what companies may be EIS eligible”). If the company is eligible, they will be listed as 'EIS' on Crowdcube. Companies are only listed as ‘EIS’ or ‘EIS Pending’ if they have ‘Advance Assurance’ - a confirmation of eligibility from HMRC - or have issued EIS shares in the last 12 months.
2. Make the investment. The investment must be in ordinary shares worth no more than 30% of the company, bought in cash.
3. Wait to receive your EIS3 form. When the company has been trading for four months, the company must submit form SEIS1/EIS1 to the Small Companies Enterprise Centre (SCEC) of HMRC. Once the SEIS1/EIS1 has been reviewed and the requirements met, the SCEC will issue a form EIS3. We make the EIS3 form available electronically to investors via their CrowdCube portfolio.
4. Use the EIS3 form to claim tax relief. How you do this will differ slightly depending on whether you submit your own tax filings:
a. If you are submitting your own tax filings, you don't need to send the EIS certificate to HMRC along with your return - only if they request it.
b. If you aren't submitting your own tax filing, you need to complete pages 3&4 on the EIS3 form and send them to the office that deals with your PAYE. You can find this information on any previous correspondence you may have received from HMRC. Your employer should also hold this information