How long does advance assurance take?

HMRC's current target for advance assurance decisions is 28 days from receipt of a complete application. In practice, well-prepared applications with clear business plans and complete supporting documents are often decided within 2 to 4 weeks. Poorly prepared applications frequently trigger information requests that add months to the process. A properly structured application submitted by an experienced Chartered Accountant materially reduces the turnaround time.

What can cause HMRC to refuse an advance assurance application?

The most common reasons for refusal include the trade being an excluded activity such as financial services, property development, leasing, or energy generation above certain thresholds; the company having already exceeded the permitted age limit; the investment being used for the acquisition of existing businesses; or the application being incomplete or unclear. A Chartered Accountant with SEIS and EIS experience identifies these risks upfront and structures the application accordingly.

Can a company use both SEIS and EIS?

Yes. Companies typically use SEIS for the first £250,000 raised and then move on to EIS for subsequent rounds. The two schemes cannot be used for the same shares simultaneously, but they can run in sequence, and some early-stage rounds include both SEIS and EIS investors at the same time once the SEIS limit has been partially used.

What causes HMRC to refuse a SEIS or EIS advance assurance application?

Common reasons include the trade being an excluded activity such as financial services, property development, leasing, or energy generation above certain thresholds; the company exceeding the permitted age limit; the funds being used to acquire an existing business; or the application being incomplete or unclear. An accountant experienced with SEIS and EIS identifies these risks before submission.

Does SEIS or EIS advance assurance guarantee the tax relief?

No. Advance assurance is HMRC confirming the company appears to qualify based on the information submitted at that point. The actual relief is only confirmed after shares are issued and the compliance statement is filed, and the company must continue meeting the qualifying conditions throughout the relevant holding period.

What is the difference between SEIS and EIS?

SEIS is for very early-stage companies and offers investors 50% income tax relief on investments up to a lifetime company limit of £250,000, with conditions including fewer than 25 employees and assets under £350,000. EIS is for growth-stage companies, offers investors 30% income tax relief on up to £5 million raised per year (lifetime limit £12 million, or £20 million for knowledge-intensive companies), with conditions including fewer than 250 employees and assets under £15 million.

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SEIS & EIS Advance Assurance · UK-Wide

SEIS & EIS Applications That Get Approved.

Looking for SEIS or EIS advance assurance support? SEIS and EIS are the most powerful investor incentives in the UK — up to 50% income tax relief for SEIS investors, up to 30% for EIS. Investors who are not asking about these schemes are leaving significant money on the table, and so are you if your company is not approved.

Consult EFC’s ICAEW Chartered Accountants prepare advance assurance applications, SEIS1/EIS1 compliance statements and investor certificates, getting it right with HMRC first time.

✓ Advance assurance applications ✓ Compliance statements (SEIS1/EIS1) ✓ Investor certificates ✓ HMRC correspondence

Get SEIS/EIS Ready → +44 7767 629 008

Kishen Patel, BFP ACA

ICAEW Chartered Accountant

Free Consultation

Talk to Us About SEIS or EIS

We will assess your eligibility and tell you what we need to get started.

In Short

SEIS (Seed Enterprise Investment Scheme) and EIS (Enterprise Investment Scheme) are UK government tax relief schemes that make investing in early-stage companies more attractive — SEIS offers investors 50% income tax relief on investments up to a £250,000 company lifetime limit, while EIS offers 30% relief on up to £5 million raised per year. Both require formal advance assurance from HMRC before shares are issued, followed by a compliance statement (SEIS1 or EIS1) after investment to trigger investor certificates. Consult EFC’s ICAEW Chartered Accountants prepare advance assurance applications and compliance statements for UK start-ups, structured to get HMRC approval right first time.

Why a rejected application can cost you an investor

HMRC’s rules for SEIS and EIS are detailed and strict. A poorly prepared application does not just delay your raise — it can cause an investor to walk away while you sort it out.

28d

is HMRC’s current target turnaround for a complete advance assurance application — incomplete ones can add months

50%

income tax relief for SEIS investors — one of the most generous reliefs in the UK tax system, and a major reason investors ask for it specifically

£250k

is the SEIS lifetime company limit — get the sequencing with EIS wrong and you risk losing relief on later rounds

The mistake that costs founders the most

Issuing shares before advance assurance is confirmed, or before the qualifying conditions are properly checked. Once shares are issued incorrectly, the relief can be lost permanently — there is no way to retroactively fix a structural problem. Getting the order of operations right matters as much as the application itself.

SEIS vs EIS — what each scheme offers

Both schemes are administered by HMRC and require formal advance assurance before shares are issued. The rules are strict — and a rejected application can cost you an investor. We get it right first time.

SEIS

Seed Enterprise Investment Scheme

For very early-stage companies raising their first investment.

Income tax relief of 50% for investors
Up to £250,000 raised under SEIS (lifetime limit)
Company must have fewer than 25 employees and assets under £350,000 when shares are issued
Capital gains exemption on disposal for investors
Loss relief available even if company fails
Must be within 3 years of first commercial sale

EIS

Enterprise Investment Scheme

For growth-stage companies raising larger rounds from investors.

Income tax relief of 30% for investors
Up to £5 million raised per year under EIS
Lifetime limit of £12 million (£20 million for knowledge-intensive companies)
Company must have fewer than 250 employees and assets under £15 million
Capital gains deferral relief for investors
Can be used after SEIS limit is exhausted

How we handle your SEIS/EIS application

STEP 1

Eligibility Assessment

We review your company structure, trading history and planned use of funds against HMRC’s qualifying conditions.

STEP 2

Advance Assurance Application

We prepare and submit the advance assurance application to HMRC’s Venture Capital Reliefs team. This gives investors certainty before they commit.

STEP 3

Compliance Statements

After shares are issued, we file the SEIS1 or EIS1 compliance statement with HMRC to trigger the formal approval process.

STEP 4

Investor Certificates

We issue SEIS2/EIS3 certificates to your investors so they can claim their tax relief on their own self-assessment returns.

UK Coverage

SEIS & EIS Support for Start-ups Across the United Kingdom

HMRC’s Venture Capital Reliefs team handles applications nationally, so we support start-ups wherever they are based in the UK.

South East

London
Surrey
Kent
Essex

Central

Hertfordshire
Bucks
Oxfordshire
Cambridgeshire

Midlands

Birmingham
Leicester
Nottingham
Coventry

The North

Manchester
Leeds
Liverpool
Newcastle

SW & Wales

Bristol
Cardiff
Bath
Exeter

Scotland & NI

Edinburgh
Glasgow
Belfast
Aberdeen

Consult EFC supports SEIS and EIS advance assurance applications for start-ups throughout the UK, covering advance assurance, compliance statements and investor certificates. Every application is personally reviewed by an ICAEW Chartered Accountant before submission to HMRC.

SEIS & EIS Questions

HMRC’s current target for advance assurance decisions is 28 days from receipt of a complete application. In practice, well-prepared applications with clear business plans and complete supporting documents are often decided within 2-4 weeks. Poorly prepared applications frequently trigger information requests that add months to the process. We prepare applications to HMRC’s standard first time, which materially reduces the turnaround.

Yes. Companies typically use SEIS for the first £250,000 raised and then move on to EIS for subsequent rounds. The two schemes cannot be used simultaneously for the same shares, but they can run in sequence. Some early-stage rounds include both SEIS and EIS investors at the same time if the SEIS limit has already been partially used. We manage the sequencing carefully to keep investors and HMRC happy.

The most common reasons include: the trade being an excluded activity (financial services, property development, leasing, energy generation above certain thresholds); the company having already exceeded the permitted age limit; the money being used for acquisition of existing businesses; or the application being incomplete or unclear. HMRC’s guidance is detailed but not always straightforward to apply. A Chartered Accountant with SEIS/EIS experience identifies these risks upfront and structures the application accordingly.

No — advance assurance is HMRC confirming that the company appears to qualify based on the information submitted at that point. The actual relief is only confirmed after the shares are issued and the compliance statement is filed. The company must continue to meet the qualifying conditions throughout the relevant holding period. This is why post-investment compliance monitoring matters as much as the initial application.

Make your start-up investable.

Book a free call. We will assess your SEIS or EIS eligibility and give you a clear fixed fee within one business day.

Book a Free Call → +44 7767 629 008

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