Menu visibility control



Startup Surgery

Most Recent


Top tech stats: Unpaid overtime, poor data usage and more


Startup Weekly: Starling Bank’s hackathon, FoodTech awards & more

Need to Know

A happy workforce: The key to business success

Press Releases

Software testing leader TestPlant appoints Dr. John Bates as CEO
CreditLadder appoints Proptech Expert Sheraz Dar as new CEO
Hermit: A Startup With New Ideas About Office Space

How the UK Government’s Enterprise Investment Scheme could help your startup


As a startup or small business, you will know how difficult it can be to secure funding to help your venture expand.

There is a scheme, set up by the UK Government that could prove to be useful.

What is the Enterprise Investment Scheme (EIS)?

The scheme was set up to encourage wealthy business people to invest money in small businesses which otherwise would have been seen as risky.

How the FCA’s Regulatory Sandbox scheme could help UK FinTech startups

For entrepreneurs, this is fabulous news as not only do they secure extra funding and investment but also people who do invest attract tax breaks.

How EIS works

In exchange for investing in small businesses, investors receive a number of perks and incentives.

For example, investors can benefit from income tax relief proportional to the shares they purchase through the scheme.

If they do make a loss when they sell their shares, they can claim loss relief that further cuts their tax bill.

Does EIS suit your business?

The idea behind EIS is that small, startup companies are targeted in their development stage.

This may mean that the business has low staffing levels and minimal assets.

Backed by Government, in the 2011 budget the amount of tax relief for investors was increased from 20% to 30%.

Supporting small businesses in the early phase of development can not only lower the failure rate of startups but also boost the economy in later years with a strong business sector.

Is the scheme working?

It appears so.

Surveys and research carried out on the scheme, businesses involved and investors show some encouraging signs.

Investment is high and small businesses are benefitting from this investment.

Under the terms of EIS, a startup or small business can receive up to £500,000 from a single investor in one tax year, with annual sum of £2m across the financial year from two or more investors.

However, as a small business you need to be aware that the level of investment varies from one sector to another; high tech companies for example, received the lion’s share of investment but construction firms were near the bottom of the table.

Getting involved in EIS

The Small Companies Enterprise Centre (SCEC) runs the scheme.

You will need to complete various forms, returning completed applications to HMRC.

From this, HMRC will decide if you qualify for the scheme and how to proceed with your application.

Enter your e-mail address to receive updates straight to your inbox

* indicates required
Send me news on...

Editor's picks

top tech stats

Top tech stats: Unpaid overtime, poor data usage and more
posted 37 mins ago

startup weekly (4)

Startup Weekly: Starling Bank’s hackathon, FoodTech awards & more
posted 18 hours ago

happy workers

A happy workforce: The key to business success
posted 21 hours ago

podcasting revolution

Here’s how your tech firm can exploit the podcasting revolution
posted 22 hours ago

Lee Evans - SurveyMe

Cheshire-based mobile app SurveyMe gets £2m
posted 23 hours ago

TWIT - Emily 23.02.17

A £12m series B, a £57.5m fund for Northern SMEs, a hoverbike and more in The Week in Tech
posted on February 24, 2017