How to Apply for SEIS Advance Assurance
Step-by-step guide to applying for HMRC advance assurance that your company qualifies for the Seed Enterprise Investment Scheme. Essential before approaching angel investors.
What You'll Need
- Certificate of incorporation and company number
- Latest accounts or management accounts
- Articles of association
- Full cap table with all shareholder details
- Business plan with financial projections
- Details of proposed share issue (amount, price, share class)
Step-by-Step Guide
Confirm your company meets SEIS eligibility criteria
Before applying, verify that your company meets all the basic SEIS requirements: less than 2 years since first commercial sale, fewer than 25 full-time equivalent employees, gross assets under £350,000, and carrying on (or preparing to carry on) a qualifying trade. Check the excluded trades list to make sure your activity qualifies.
- •The 2-year clock starts from your first commercial sale, not incorporation date
- •Gross assets are measured immediately before the share issue, so include cash in bank and any equipment
- •If you have a mix of qualifying and non-qualifying activities, the non-qualifying part must be less than 20% of overall activity
- •Pre-revenue companies can still qualify if they are preparing to trade
Prepare your business plan and financial projections
HMRC will want to understand your business model, what the investment money will be used for, and whether the trade is genuinely commercial. Prepare a concise business plan covering your product or service, target market, revenue model, team, and how you intend to use the funds raised. Include financial projections for at least 2 years.
- •Focus on demonstrating that you are carrying on a genuine qualifying trade, not just holding assets
- •Be specific about use of funds - HMRC wants to see the money goes to qualifying business activity
- •If you are pre-revenue, explain your route to first commercial sale
- •Keep projections realistic - HMRC is checking trade status, not business viability
Gather your company documents
Collect your latest filed accounts or management accounts, your articles of association, details of all existing shareholders and their holdings, your certificate of incorporation, and any shareholders' agreements. If you have already issued shares to founders, have the share certificates and subscription details ready.
- •Management accounts are fine if you have not yet filed statutory accounts
- •Include a cap table showing all shareholders and their percentage holdings
- •Make sure your articles of association allow for the type of shares you plan to issue
- •If you have convertible loan notes outstanding, gather those documents too as they may affect eligibility
Complete the HMRC advance assurance application form
Apply through HMRC's online service for venture capital schemes. The form asks for your company details, a description of your trade, details of the proposed share issue (number of shares, price, total amount to be raised), details of proposed investors if known, and how you will use the funds. You can apply for SEIS advance assurance, EIS advance assurance, or both simultaneously.
- •You can apply for combined SEIS and EIS advance assurance in a single application if you plan sequential raises
- •Be precise about the amount you plan to raise - HMRC's assurance covers the specific amount stated
- •If you do not yet know your investors, you can still apply and add investor details later
- •The application is free - there is no HMRC charge for advance assurance
Submit your application with supporting documents
Upload your business plan, financial projections, articles of association, latest accounts, and cap table alongside the application form. Include any other documents that support your qualifying trade status, such as contracts with customers, evidence of R&D activity, or product demonstrations.
- •Label your documents clearly so HMRC can find what they need quickly
- •A cover letter summarising the key points can speed up processing
- •If your trade is unusual or could be confused with an excluded activity, add a specific note explaining why it qualifies
- •Double-check all figures match between your application form and supporting documents
Wait for HMRC response and handle any queries
HMRC's Small Company Enterprise Centre aims to respond within 4-6 weeks, though it can take longer during busy periods (such as the end of the tax year). They may come back with additional questions before making a decision. Respond promptly and thoroughly to any queries to avoid further delays.
- •If you have not heard back after 6 weeks, you can call the Small Company Enterprise Centre to check progress
- •HMRC queries are usually about trade qualification or use of funds - prepare clear answers
- •Keep copies of all correspondence for your records
- •If your application is rejected, HMRC will explain why and you may be able to reapply after addressing the issues
Receive advance assurance and share with investors
If successful, HMRC issues an advance assurance letter confirming they are satisfied the company should meet the SEIS conditions. Share this letter with your potential investors as evidence that their investment should qualify for tax relief. Note that advance assurance is not a binding guarantee - HMRC can still refuse the compliance certificate if circumstances change.
- •Investors and angel networks will typically require sight of this letter before committing
- •The assurance usually covers a specific amount - if you change your fundraise target significantly, consider reapplying
- •Advance assurance typically remains valid for the fundraising round described in the application
- •After issuing shares, you will still need to submit the SEIS1 compliance statement to get SEIS3 certificates for investors
Common Mistakes to Avoid
Applying after shares have already been issued - advance assurance must be obtained before the share issue
Not checking the excluded trades list and discovering your activity does not qualify after investors are lined up
Forgetting to include convertible loan notes or options in the cap table, which can affect the connected person tests
Providing vague descriptions of how funds will be used instead of specific, qualifying business activities
Frequently Asked Questions
What is SEIS Advance Assurance and why should I apply?
SEIS Advance Assurance is a non-binding confirmation from HMRC that your company is likely to qualify for the Seed Enterprise Investment Scheme. It gives investors confidence before they commit funds, as it signals HMRC has reviewed your eligibility and sees no immediate issues.
How long does HMRC take to process an Advance Assurance application?
HMRC's Small Company Enterprise Centre typically responds within 4-6 weeks, though during busy periods it can take up to 8 weeks. Incomplete applications or those requiring additional information will take longer. Submit well before your planned fundraising round.
Can I raise investment before receiving Advance Assurance?
Yes, you can raise SEIS investment without Advance Assurance, but it is riskier for investors. If HMRC later determines your company does not qualify, investors will lose their tax relief. Most angel investors will want to see Advance Assurance before committing.
What are the main qualifying conditions for SEIS?
Your company must be under 3 years old, have fewer than 25 employees, have gross assets under £350,000, not have raised more than £250,000 under SEIS, and be carrying on (or preparing to carry on) a qualifying trade. Certain trades like property development are excluded.
Do I need a lawyer or accountant to apply for SEIS Advance Assurance?
No, you can apply yourself using HMRC's online form. However, the application requires detailed information about your business plan, trade, and share structure. Many founders use a specialist adviser for their first application to ensure it is presented correctly and avoid delays.
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