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  • SEIS / EIS investment & director / employee advice sought
  • smurf
    Free Member

    I’m currently investigating a few options after I’ve started talking to one of my angel investment companies about working for them next year.

    To date I’ve made a SEIS and EIS investment into the business. I’m currently employed by another company as a PAYE / perm employee. I’m due to leave my current employer early next year.

    My understanding is that I can become a director in the (angel investment) business and retain my tax benefits, but I’ve not been able to confirm so far what I can / can’t do as a Director and retain my tax benefits.

    E.g. can I become occupied full time by the business? Can I be paid by the business, and if so, in what way (e.g. monthly salary, dividends only etc.)

    It’s only really going to be worth joining the business if I can retain my existing tax benefits, work for them full time, receive a regular income from the business, and build up a stake through further investments and share options being granted.

    If anyone has any advice or links to helpful web sites, I’d appreciate their help.

    craigxxl
    Free Member

    Speak to an accountant as HMRC love to challenge this scheme. As a connected person and as a director involved management you would lose the tax relief. It has been while since I dealt with EIS but I’m sure that is the basics.

    smurf
    Free Member

    Thanks craigxxl. I think I’ll need to. I know you can’t be an employee, but can be a director – the issue is that the HMRC info I’ve read to date doesn’t make it clear what they see as the difference.

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    craigxxl
    Free Member

    You can write or call HMRC giving them details of your circumstances and they will let you know the tax implications. If calling them make sure you take reference number for the call.

Viewing 4 posts - 1 through 4 (of 4 total)

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