• Home
  • Authors
  • Write for us
  • Advertise
  • Contact
  • Privacy Policy
  • Terms and Conditions
Friday, January 15, 2021
No Result
View All Result
ABC Money
PR Fire Press Release Distribution
  • News
  • Business
  • Economics
  • Finance
    • Investment
    • Tax
    • Mortgage
  • Property
    • Utilities
  • World
  • Technology
  • Fashion
  • Health
  • Holidays
  • News
  • Business
  • Economics
  • Finance
    • Investment
    • Tax
    • Mortgage
  • Property
    • Utilities
  • World
  • Technology
  • Fashion
  • Health
  • Holidays
ABC Money
No Result
View All Result
Home Business

How to obtain public funding for your innovative start-up

by Elliot Preece
23/11/2016

RelatedPosts

How to Get Started as A Freelancer

How Much Money Can You Earn as a Nail Technician?

Problems and Solutions of Working Through Quarantine

Ideas To Shine Money This Year

Load More

If you are an entrepreneur and love to venture into the unknown and push the boundaries of technology then mixing R&D Tax Credits, with help from Myriad Associates, and the Seed Enterprise Investment Scheme (SEIS) could provide you with up to 83% of your funding requirements. The latest tax incentive offerings from HMRC are unprecedented. Both R&D Tax Credits and SEIS are very generous in their own right, however when they are combined together they make an incredible funding opportunity for an innovative start-up business.

The funding recipe

Serves 4+ investors & a hungry innovative start-up

Ingredients

  • 1 start-up company or alternatively a company that has been trading for less than 2 years
  • Investors (ideally 4 or more)
  • 1 SEIS certificate (available from HMRC)
  • Directors that have a passion to venture into the unknown
  • A sprinkling of dedicated employees that engage in development activities
  • 1 specialist tax consultancy
  • 1 R&D Tax Relief claim (per year)

Instructions

  • 1 Firstly, set up a new company or use an existing company that has been trading for less than 2 years, has total assets of less than £200,000 and employees 25 people or less.
  • Add a SEIS certificate. You will be able to obtain this by making an application to HMRC (with the support of your tax consultant)
  • Add 4 investors that each invest £37,500 in return for a 25% shareholding in the new venture. Under SEIS each investor would be able to reclaim 50% income tax relief (£18,750) on their investment irrespective of their tax rate. This means that a total of £75,000 is received back through the self-assessment return. It is important to structure the shareholdings so that no shareholder has more than 30%. A company can raise up to £150,000 in total under the SEIS incentive.
  • Invest the £150,000 in development activities by adding and mixing employees that have a passion to push the boundaries of technology forward
  • Bring the development activities to boil and then leave to simmer for up to 12 months (could be shorter if you need to get your hands on cash quicker!)
  • Add a specialist R&D Tax Relief consultant that will analyse, prepare, optimise and then submit your R&D Tax Relief claim to HMRC
  • Continue with your development activities whilst your R&D Tax Relief claim is cooling off with HMRC
  • Finally, invite your investors to dinner so that they can get a taste of the £50k (£150,000 x 2.30 x 14.5%) worth of R&D Payable Tax Credits before agreeing to re-invest it in the business to support further development activities. Alternatively the investors can treat you to dinner as they would have received £75k back through their self-assessment returns.
  • So in sum from the original investment of £150k into the start-up innovate business, a total of £125k (83%) has been paid out by HMRC.

We hope that this recipe has given you a little taster of the excellent funding opportunities that are available from HMRC. All that is required is a little bit of upfront tax planning to ensure that your business venture is structured to take advantage of these very generous tax incentives.

 

myriad-infographics-2

Previous Post

How to Save Money When You Have a Baby

Next Post

Students Struggling To Make Their Loans Go Far Enough

Related Posts

How to Get Started as A Freelancer
Business

How to Get Started as A Freelancer

15/01/2021
How Much Money Can You Earn as a Nail Technician?
Business

How Much Money Can You Earn as a Nail Technician?

15/01/2021
Problems and Solutions of Working Through Quarantine
Business

Problems and Solutions of Working Through Quarantine

15/01/2021
Next Post
Traders thriving in volatile forex market

Students Struggling To Make Their Loans Go Far Enough

Are Property Auctions now the Best Way to Invest in Real Estate in 2016?

Are Property Auctions now the Best Way to Invest in Real Estate in 2016?

Are you Car Savvy? The Simple Checks that can Save your life

Are you Car Savvy? The Simple Checks that can Save your life

Latest News

Bridge International Academies (Kenya/Nigeria/Uganda) Offers Education for All

Bridge International Academies (Kenya/Nigeria/Uganda) Offers Education for All

15/01/2021
The prognosis for Bitcoin in 2021

The prognosis for Bitcoin in 2021

15/01/2021
Rideshare Insurance for Drivers: What it Covers in an Accident

Rideshare Insurance for Drivers: What it Covers in an Accident

15/01/2021
Options For Car Repair Without Any Emergency Fund

Options For Car Repair Without Any Emergency Fund

15/01/2021
How to Get Started as A Freelancer

How to Get Started as A Freelancer

15/01/2021
Ideas for Your Garden Renovation 2021

Ideas for Your Garden Renovation 2021

15/01/2021

Social

Contact

For editorial enquiries:

editorials@abcmoney.co.uk

For advertising enquiries:

advertise@abcmoney.co.uk

Top Topics

  • News
  • Business
  • Finance
  • Property
  • Technology
  • Investment

Guides

  • Best UK Bridging Loans
  • Best UK Secured Loans
  • Best UK Commercial Mortgages
  • Best UK Business Loans
  • Best UK Payday Loans
  • Best Sites for International Money Transfers
  • Best Press Release Distribution Service

Social

  • Home
  • Authors
  • Write for us
  • Advertise
  • Contact
  • Privacy Policy
  • Terms and Conditions

© 2020 ABC Money

No Result
View All Result
  • Write for us
  • Contact
  • About Us
    • Authors
  • News Desk
    • Business
    • Finance
    • Property
    • Technology
    • Investment

© 2020 ABC Money

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.