Advance Assurance Updates | Seedrs

On 10 October 2019, HMRC up to date the Advance Assurance steerage contained within the Enterprise Capital Handbook (‘VCM’), yow will discover this right here. Probably the most notable change was the introduction of a guidelines that now should be accomplished and submitted together with any Advance Assurance utility to the Enterprise Capital Reliefs Group (‘VCR Group’) at HMRC.

The guidelines is just not designed to be a hurdle in searching for Advance Assurance. It acts as a useful software to make sure you perceive and may present proof that the corporate meets the situations for SEIS or EIS. Usually, firms don’t present the proper data the primary time round, which may result in delays; the guidelines is meant to forestall this. This can assist the VCRT take care of the functions effectively, which means your utility might progress extra rapidly!

The guidelines is split into two components. Part one goes by way of the supporting paperwork and data that must be included within the Advance Assurance utility – which conveniently stays the identical, with the exception that you simply even have to supply your organization’s register of members. Within the format of a desk, the guidelines units out the knowledge required and permits the corporate to both present supporting paperwork or present a proof.

Part two goes by way of the precise situations the corporate has to fulfill for the funding to qualify as SEIS or EIS, and it hyperlinks to the related steerage throughout the VCM. These situations are additionally set out within the SEIS or EIS compliance assertion (to be accomplished as soon as the funding is acquired and shares are issued), the place it’s a tick field train. You’ll simply want to verify the corporate meets the situation. If not, or you might be not sure, then you’ll be able to present additional particulars.

Advance Assurance is a beneficial service supplied by HMRC, which provides consolation to potential buyers; we’re happy to see HMRC taking steps to enhance and streamline the method. You probably have any questions, don’t hesitate to get in contact.

Three Issues to recollect when making use of for Advance Assurance

1. Get the advance assurance utility in as quickly as attainable! HMRC goals to reply to most functions inside 15 working days, and no later than 40 days. It might be longer in the event that they require additional data. 

2. You will have to supply particulars of your buyers. For every of those buyers, you will have to incorporate their identify, handle and anticipated funding. This was launched by HMRC in 2018 in order that they may focus the service to firms that intend to make use of the scheme – they’d discovered that 30% of the Advance Assurance functions acquired had been speculative and didn’t lead to an funding. You received’t want to do that if you happen to elevate on Seedrs, you merely want to supply HMRC with our signed engagement letter. 

3.  Keep in mind that Advance Assurance is just not obligatory nevertheless it supplies consolation to buyers. It’s our coverage to solely mark a pitch as an SEIS or EIS alternative if the corporate has efficiently acquired advance assurance. 

Seedrs doesn’t present authorized, monetary or tax recommendation of any type, and nothing on this information constitutes such recommendation. You probably have any questions with respect to authorized, monetary or tax issues related to your interactions with Seedrs or its associates, you must seek the advice of knowledgeable adviser.