What Is HMRC Advance Assurance?
You’ve heard of SEIS and EIS. Great tax relief for investors. But they come with paperwork. That’s where HMRC advance assurance steps in.
- It’s non-statutory.
- It’s discretionary.
- It’s your pre-check with HMRC that your company ticks the boxes for SEIS or EIS.
Think of it as a weather forecast. You don’t have to wait for the storm to hit. You get a heads-up. That reassurance makes investors more comfortable writing hefty cheques.
This EIS advance assurance guide walks you through every step. No jargon. No fluff.
Why You Need This EIS Advance Assurance Guide
Imagine you’re pitching to an angel. They ask: “Have you got advance assurance?” You fumble. Confidence dips. The cheque shrinks.
With advance assurance:
- Investors see less risk.
- They don’t need to wait for confirmation.
- Deals close faster.
This EIS advance assurance guide ensures you breeze through the HMRC process. And yes, it applies equally to SEIS.
Step-by-Step: Your EIS Advance Assurance Guide
Here’s the nitty-gritty. Follow this EIS advance assurance guide like a recipe for cake. Miss one ingredient and your cake—er, application—might flop.
1. Check Your Eligibility
Before diving in, ask yourself:
- Is your company independent?
- Are you carrying on a qualifying trade?
- Do you meet the “new growth and development” condition?
- Is your business under seven years old (or ten for knowledge-intensive)?
Pro tip: If you’re borderline, gather technical analysis. HMRC hates speculative applications.
2. Gather Your Documents
HMRC wants detail. Provide:
- Amounts you intend to raise.
- Exact use of funds.
- Latest company and subsidiary accounts.
- Draft prospectus or investor deck.
- Business plan.
- Memorandum & Articles of Association (with changes).
- Register of members.
- Any subscription or side agreements.
- Details of prospective investors (unless listed on AIM or via a promoter).
- Evidence for de minimis aid (SEIS only).
Roughly 12–15 items. No surprises. Keep them organised in PDF.
3. Complete the Online Form
For SEIS and EIS, HMRC offers an online form. It’s straightforward:
- Tax reference and company details.
- Attach supporting documents.
- Provide technical analysis if needed.
If you’re applying for Social Investment Tax Relief, use a covering letter and email or post docs.
4. Submit and Track
Hit “Submit.” Now what?
- HMRC may come back with queries.
- They’ll opine on genuine applications only.
- They won’t engage if they think it’s testing the limits.
Expect a response in 4–6 weeks. Pin your hopes on no nasty surprises.
5. Respond Promptly
If HMRC asks for clarifications:
- Reply within 10 working days.
- Keep responses concise.
- Reference your original application.
Stalling costs time. And time kills deals.
Common Pitfalls and How to Avoid Them
Even seasoned founders trip up. Here’s our EIS advance assurance guide cheat sheet:
- Overly speculative projections.
- Missing investor names.
- Out-of-date articles of association.
- Blurry business plans.
- Forgetting to demonstrate “risk to capital.”
Avoid these, and you’ll sail through.
How Oriel IPO Simplifies Your SEIS/EIS Journey
So far, this EIS advance assurance guide has been a solo mission. What if you had a co-pilot?
Enter Oriel IPO—the commission-free marketplace for SEIS and EIS deals.
- Zero commission on funds raised. Instead, subscription fees.
- Curated, vetted startups ready for SEIS/EIS.
- Educational resources: webinars, blogs, templates.
- Product highlight: Maggie’s AutoBlog—an AI-powered tool that whips up SEO and GEO-targeted blogs. Perfect for documenting your journey and attracting investors.
With Oriel IPO, you get the tools and the stage. You focus on the pitch. We handle the rest.
Tips for Maximising Your Application Success
This is the final stretch of our EIS advance assurance guide. Here are quick wins:
- Start early. Leave 8 weeks before your fundraise.
- Name your investors. HMRC wants specifics.
- Draft a clear “use of proceeds” table.
- Show real traction: revenue, partnerships, pilot results.
- Bundle docs neatly. One PDF per section.
Small details matter. Nail them.
Final Thoughts
There you have it—a full EIS advance assurance guide. From eligibility to submission. From pitfalls to partner solutions.
Advance assurance isn’t mandatory. But it’s a confidence booster. For founders. For investors.
Ready to make your SEIS/EIS journey friction-free? Join Oriel IPO’s ecosystem. Support your application with expert resources and commission-free funding options.
