Answer
When can a new company apply for SEIS advance assurance?
You can apply as soon as the company exists and you can describe a proposed share issue: how much you are raising, what the money will be spent on, and at least one prospective investor. You do not need to be trading yet. Apply before the shares are issued, because advance assurance is forward-looking by design.
The dates that matter
| Date or limit | SEIS | EIS |
|---|---|---|
| Trading age at share issue | Trade under 3 years old | First commercial sale within 7 years (10 if knowledge-intensive) |
| Clock starts from | When the new qualifying trade began | First commercial sale |
| Money must be spent | Within 3 years of the share issue | Within 2 years of the share issue |
| Compliance statement | After trading 4 months or spending 70% of SEIS money | After trading 4 months or spending 70% of the money raised |
| Investor claim window | Up to 5 years from 31 January after the tax year of investment | Same |
You are ready to apply when you have
- An incorporated UK company with a permanent establishment in the UK
- A written plan describing the trade and how it grows
- A target raise amount and the share class you intend to issue
- A clear use of funds tied to growing the trade
- At least one prospective investor willing to be named
- Latest accounts, or forecasts if you have no accounts yet
Timing traps we see most often
The three-year SEIS clock running from the start of trade rather than incorporation catches out companies that incorporated early and traded later, and the reverse: companies that quietly began trading long before they think they did. Prior grants or de minimis state aid can also reduce what you are able to raise under SEIS. Both are much cheaper to resolve before filing than after HMRC asks.
Primary sources
What Mida OS actually does
We are a boutique SEIS and EIS consultancy in the UK. We check your eligibility, draft and file the advance assurance application with HMRC, and answer HMRC's questions until the letter arrives. Fixed fee of £449 for SEIS, EIS or both, and every application we have filed has been approved. After your round closes we file the SEIS1 or EIS1 compliance statement and issue SEIS3 and EIS3 certificates at £50 per investor.