Wk 8-9 Money matters, tax breaks - I wish!

Do you see your glass as half empty or half full?

Work life balance came to the fore and so things to write about in the blog were a bit thin on the ground and hence a 2-week period. 

Despite the day off in the first week, the HUB arranged some financial companies to listen to plans and future investment needs. 

 

THE BIG THING – HOW TO ATTRACT INVESTMENT IN YOUR IDEA 


Its not all Dragons Den! 


There are options and your Friends and Family may be able to help; plus there are lots of companies that help start-ups. 

A key to funding your business in finance knowledge for an entrepreneur is to use SEIS and EIS to get enough investment to start the business and protect your equity; your share of the business..

 

What is SEIS and EIS?

SEIS - SEIS is designed to help your company raise money when it’s starting to trade. It does this by offering tax reliefs to individual investors who buy new shares in your company.You can receive a maximum of £150,000 through SEIS investments on which your investors can claim relief.

EIS - EIS is designed so that your company can raise money to help grow your business. It does this by offering tax reliefs to individual investors who buy new shares in your company.

Under EIS, you can raise up to £5 million each year, and a maximum of £12 million in your company’s lifetime.

How the schemes compare for Income Tax relief

Scheme

Maximum annual investment you can claim relief on

Percentage of investment on which you can claim

Tax relief on income from dividends

EIS

£1 million

30%

No

SEIS

£100,000

50%

No

For EIS and SEIS, you can either claim income tax relief in:

·      the tax year you make the investment

·      the tax year before you make the investment - if you choose to treat some or all of the investment as being made in a previous year

You can only claim relief against the amount of Income Tax you need to pay in the UK. You cannot carry forward unused Income Tax relief to future tax years.

How the schemes compare for Capital Gains Tax relief

Scheme

Personal Capital Gains Tax relief available on your initial investment

Type of Capital Gains Tax relief on initial investment

Gains exempt from Capital Gains Tax when you sell shares

Relief available for capital losses against income

EIS

Yes on 100% of investment

Deferral

Yes if you received Income Tax relief

Yes

SEIS

Yes on 50% of investment, capped at £50,000

Exempt from tax

Yes if you received Income Tax relief

Yes


IF YOU"RE STARTING - FIND OUT MORE!

Government after government have supported the start-up of small businesses.

There is loads of useful information on how the Government helps new businesses and it can be found HERE.


Who's soaring like an Eagle in the hub?

This week’s shout outs go to: 

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Ifeyinwa and Emeka Frederick – Chuku’s London

This Nigerian tapas restaurant is the place to ‘chop, chat and chill’. Whether choosing traditional dishes or one with a unique Chuku’s twist, guests can expect a menu bursting with authentic Nigerian flavours. Brother-sister duo, Ifeyinwa and Emeka, created Chuku’s as a place to enjoy fantastic food, relax and chat, so soak up the country’s chill-out beats and make yourself at home!


And:

The team at Galvanise esp Harry Weber-Brown for coming to the HUB and talking about paths to investment.

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Thanks NatWest ;-), it is fantastic to be surrounded by so many talented people starting their own businesses.

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