SEIS/EIS
How to apply for SEIS: A step-by-step guide
Introduction
The Seed Enterprise Investment Scheme (SEIS) is one of the most powerful funding tools available to UK startups. By offering generous tax reliefs to investors, SEIS makes it easier for early-stage businesses to raise capital. However, securing SEIS funding isn’t automatic—you need to apply for approval from HMRC before investors can benefit from tax relief.
If you're a startup founder looking to raise SEIS investment, this guide will walk you through the exact steps required to apply. We’ll cover:
How to check if your company qualifies
The documents needed for your application
Common mistakes that could delay your approval
What happens after you receive Advance Assurance
By the end of this guide, you’ll know how to apply for SEIS the right way—and how to avoid the pitfalls that can lead to rejections and delays.
Step 1: Confirm Your SEIS Eligibility
Before applying, your startup must meet strict SEIS eligibility criteria. Many founders assume they qualify but later discover hidden disqualifications.
Key SEIS Requirements:
UK-based and actively trading
Trading for less than 3 years at the time of share issuance. (Pro tip: The date you started trading may be much later than when your company was incoporated)
Gross assets under £350,000 before receiving SEIS investment
Fewer than 25 full-time employees
Engaged in a qualifying trade (some industries are excluded)
Common Pitfalls:
Excluded industries – If more than 20% of your revenue comes from finance, property development, energy production, or legal/accounting services, you may be disqualified.
Company age restrictions – If you're approaching the 3-year limit, any delays from an incorrect application could push you beyond eligibility.
Step 2: Prepare Your SEIS Application Documents
SEIS applications require a detailed submission, and missing documents can result in delay approval or rejection. HMRC is strict about what they accept, so preparing everything correctly is crucial, especially when time is of the essence.
Essential Documents You Need:
Business Plan or Pitch Deck – Must outline your company’s trade, revenue model, and growth strategy while satisfying HMRC’s risk to capital condition.
Financial Forecasts (3 Years) – Projected profit and loss statement / cash flow forecasts, and justification for financial assumptions. The level of detail that HMRC expect will depend on your stage of growth.
Investor Commitment Letter – If this is your first SEIS raise, you must provide details of at least one potential investor willing to invest 25%+ of the round. Where this investor is an instituion (not an indivudal), you must provide a letter confirming the investors interest in investing in your company.
Company Shareholder Register & Cap Table – Any existing investors or shareholdings must be documented.
Unique Taxpayer Reference (UTR) Number – Your company’s 10-digit UTR, issued by HMRC when you registered with Companies House.
Step 3: Submit Your SEIS Advance Assurance Application
Once you’ve gathered all required documents, you can apply for SEIS Advance Assurance through HMRC’s online portal.
What Happens After Submission?
HMRC typically reviews applications within 4-6 weeks.
If there are errors or missing details, HMRC will request additional information—which resets the waiting time.
If your application is rejected, you must fix the issues and reapply, delaying your fundraising efforts.
Step 4: What Happens After SEIS Approval?
Once HMRC approves your Advance Assurance, you will receive a confirmation letter. This is not the final step—you must still follow strict SEIS compliance rules.
Next Steps After Approval:
Share your SEIS approval letter with potential investors.
Issue SEIS shares correctly—incorrect share issuance can invalidate investor tax relief.
Submit the SEIS1 form to HMRC after issuing shares (when you have spent at least 70% of the money raised from the SEIS issue or carried out the qualifying business activities for at least 4 months).
Common Mistakes That Can Cost You SEIS Tax Relief:
Issuing shares incorrectly – If you don't follow SEIS guidelines when issuing shares, investors may lose their tax relief.
Using SEIS funds for non-qualifying purposes – SEIS investment must be spent on growth activities (e.g., R&D, hiring). Using funds for debt repayment or share buybacks disqualifies tax relief.
Accepting investment from disqualified investors – Investors who own more than 30% of your company (including through associates) don't qualify for SEIS tax relief.
Not maintaining UK presence – If your company ceases to have a UK permanent establishment within 3 years, investors may lose their tax benefits.
Conclusion: Why It’s Worth Getting SEIS Right the First Time
SEIS funding is a fundraising essential for early-stage startups, but applying incorrectly can cause delays, rejections, or loss of investor confidence.
Ensure your company meets SEIS eligibility criteria.
Submit a complete, HMRC-ready application.
Avoid common pitfalls that lead to delays, rejection or losing your investors their tax relief..
Secure Advance Assurance quickly and efficiently.
Introduction
The Seed Enterprise Investment Scheme (SEIS) is one of the most powerful funding tools available to UK startups. By offering generous tax reliefs to investors, SEIS makes it easier for early-stage businesses to raise capital. However, securing SEIS funding isn’t automatic—you need to apply for approval from HMRC before investors can benefit from tax relief.
If you're a startup founder looking to raise SEIS investment, this guide will walk you through the exact steps required to apply. We’ll cover:
How to check if your company qualifies
The documents needed for your application
Common mistakes that could delay your approval
What happens after you receive Advance Assurance
By the end of this guide, you’ll know how to apply for SEIS the right way—and how to avoid the pitfalls that can lead to rejections and delays.
Step 1: Confirm Your SEIS Eligibility
Before applying, your startup must meet strict SEIS eligibility criteria. Many founders assume they qualify but later discover hidden disqualifications.
Key SEIS Requirements:
UK-based and actively trading
Trading for less than 3 years at the time of share issuance. (Pro tip: The date you started trading may be much later than when your company was incoporated)
Gross assets under £350,000 before receiving SEIS investment
Fewer than 25 full-time employees
Engaged in a qualifying trade (some industries are excluded)
Common Pitfalls:
Excluded industries – If more than 20% of your revenue comes from finance, property development, energy production, or legal/accounting services, you may be disqualified.
Company age restrictions – If you're approaching the 3-year limit, any delays from an incorrect application could push you beyond eligibility.
Step 2: Prepare Your SEIS Application Documents
SEIS applications require a detailed submission, and missing documents can result in delay approval or rejection. HMRC is strict about what they accept, so preparing everything correctly is crucial, especially when time is of the essence.
Essential Documents You Need:
Business Plan or Pitch Deck – Must outline your company’s trade, revenue model, and growth strategy while satisfying HMRC’s risk to capital condition.
Financial Forecasts (3 Years) – Projected profit and loss statement / cash flow forecasts, and justification for financial assumptions. The level of detail that HMRC expect will depend on your stage of growth.
Investor Commitment Letter – If this is your first SEIS raise, you must provide details of at least one potential investor willing to invest 25%+ of the round. Where this investor is an instituion (not an indivudal), you must provide a letter confirming the investors interest in investing in your company.
Company Shareholder Register & Cap Table – Any existing investors or shareholdings must be documented.
Unique Taxpayer Reference (UTR) Number – Your company’s 10-digit UTR, issued by HMRC when you registered with Companies House.
Step 3: Submit Your SEIS Advance Assurance Application
Once you’ve gathered all required documents, you can apply for SEIS Advance Assurance through HMRC’s online portal.
What Happens After Submission?
HMRC typically reviews applications within 4-6 weeks.
If there are errors or missing details, HMRC will request additional information—which resets the waiting time.
If your application is rejected, you must fix the issues and reapply, delaying your fundraising efforts.
Step 4: What Happens After SEIS Approval?
Once HMRC approves your Advance Assurance, you will receive a confirmation letter. This is not the final step—you must still follow strict SEIS compliance rules.
Next Steps After Approval:
Share your SEIS approval letter with potential investors.
Issue SEIS shares correctly—incorrect share issuance can invalidate investor tax relief.
Submit the SEIS1 form to HMRC after issuing shares (when you have spent at least 70% of the money raised from the SEIS issue or carried out the qualifying business activities for at least 4 months).
Common Mistakes That Can Cost You SEIS Tax Relief:
Issuing shares incorrectly – If you don't follow SEIS guidelines when issuing shares, investors may lose their tax relief.
Using SEIS funds for non-qualifying purposes – SEIS investment must be spent on growth activities (e.g., R&D, hiring). Using funds for debt repayment or share buybacks disqualifies tax relief.
Accepting investment from disqualified investors – Investors who own more than 30% of your company (including through associates) don't qualify for SEIS tax relief.
Not maintaining UK presence – If your company ceases to have a UK permanent establishment within 3 years, investors may lose their tax benefits.
Conclusion: Why It’s Worth Getting SEIS Right the First Time
SEIS funding is a fundraising essential for early-stage startups, but applying incorrectly can cause delays, rejections, or loss of investor confidence.
Ensure your company meets SEIS eligibility criteria.
Submit a complete, HMRC-ready application.
Avoid common pitfalls that lead to delays, rejection or losing your investors their tax relief..
Secure Advance Assurance quickly and efficiently.
Get your SEIS application right the first time.
A rejected SEIS application can slow down your fundraising efforts. Work with an expert to ensure your startup gets SEIS approval without delays.