EII - Investment in own company

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FewEuro

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I started a new business last year and invested savings in it. I also have plans to invest more this year. Prior to this business venture last year I was a PAYE worker.
I don't qualify for the seed capital scheme as the service industry isn't covered by this.
Can I use the EII scheme to recoup some of the tax I paid as a PAYE employee? Or is relief only applicable to future earnings?
 
In a word, no. It's aimed at investors, as in third parties, rather than owner managers. There are specific rules to preclude people connected with the company from availing of the relief.
 
Thanks for the reply but the revenue leaflet explains that director investment is included

"Employees and Directors as Investors
Employees and directors of the investee company may invest in the company under the scheme but are subject to certain rules. Individuals may qualify in respect of investment in companies owned or run by family members or close relatives of theirs (provided they are not otherwise disqualified)."
 
FewEuro said:
Thanks for the reply but the revenue leaflet explains that director investment is included

"Employees and Directors as Investors
Employees and directors of the investee company may invest in the company under the scheme but are subject to certain rules. Individuals may qualify in respect of investment in companies owned or run by family members or close relatives of theirs (provided they are not otherwise disqualified)."
Click to expand...

Yes I'm familiar with the document.

You said in you first post that you set up the company so I assume you either own or control more than 30% of the company, or would do so after you subscribe for the shares under the scheme - That is the rule I referred to, apologies for not being more clear.

Also, if the company provides professional services (within the meaning of S.441) then it will not be eligible for EIIS in any case.
 
Actually, on further reading, I wasn't correct above - as long as the aggregate capital in the company is <€500k, you can invest in your own company.

But my point about professional services companies still stands, so you'll need to check that out.

You need professional advice.
 
Thanks. I'm part of the service industry e.g Laptop repair which is not a 'Professional Service'
"Professional Service - Accounting, legal, medical and other such services provided by a formally certified member of a professional body."

I know I am entitled to use the scheme so I'm not particularly worried about this, but my question is whether or not the relief can be applied to tax paid previously rather than a relief being applied to tax in the future.
If I could recoup some of the previously paid tax based on my investment to date then I would be in a position to invest more into my company this year.
 
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