Hi,
I set up a small SME in April 2007 and lookig for advice
I have read about seed capital tax relief and think I qualify but wondering what, if any, is the catch?
I have been certified as eligible by a state Enterprise agency as technically the business offers internationally traded services
The company has two shareholders, both are diectors and full time employees - and we both were PAYE for at least three years prior to when we set up on our own.
As far as I can see, if we injected capital into the company(say 100k), we could claim it all back against previous income tax paid in previous lives as employees
Anyone know the details or am I deluded? Specifically ..
1. How do I progress the claim? Will my accountant need to be involved or can I DIY it? As i said i already have the certificate of eleigibility
2. How is the money injected? Do I simply lodge funds and then issue new shares? Will the revenue write me a cheque - or will they first want to see the investment in place - i.e. I would need to borrow money to invest - while awaiting revenue to recompense
3. Once the money is put i nto company coffers, what are the rules? Will revenue want to know specific investment reasons, eg. purchase of office?
What can I do then with the money? Can I use it for ordinary cashflow in the company? If I have issued shares for the investment, i presume i must hold on to them?
4. we are n earing the end of our first year trading. are we technically still a start up?
all advice hugely appreciated - many thanks
c