SEIS and EIS tax relief London
SEIS and EIS Tax Relief London Taxaccolega, London-based accounting firm is dedicated to giving our clients the most recent details on tax relief programs that can help them with their investment plans and business expansion. The Enterprise Investment Scheme London(EIS) and the Seed Enterprise Investment Scheme Croydon (SEIS) are two such programs that provide investors in early-stage businesses with attractive tax incentives. Table of Contents SEIS and EIS tax relief London? SEIS vs EIS Comparison UK: Key Points How This Affects Your Business Increased Payroll Expenses Lower profits Less cash available for growth or hiring Greater Effect on Bigger Teams Strategies for managing higher NIC costs 1. Check if you can claim the new Employment Allowance 2. Use salary sacrifice 3. Use freelancers or self-employed workers 4. Outsource where possible 5. Let more staff work from home 6. Review all your spending 7. Use better financial tools 8. Ask your staff for cost-saving ideas How Other London Businesses Are Responding Final Thoughts: Stay Positive, Plan Smart How to apply for SEIS and EIS in London Is Advance Assurance Necessary for SEIS/EIS? What You Need for Advance Assurance How Taxaccolega Can Assist with SEIS EIS Relief in London Croydon SEIS and EIS tax relief London? Seed Enterprise Investment Scheme Croydon (SEIS) is designed to help small, early-stage businesses raise equity finance by offering tax reliefs to individual investors who buy new shares in those companies. EIS investment scheme London, in contrast, provides tax relief to investors by making it easier for larger businesses to invest in businesses that are engaged in qualifying trades. SEIS vs EIS Comparison UK: Key Points Our SEIS vs EIS tax relief and SEIS vs EIS comparison UK guide highlights the SEIS vs EIS eligibility criteria London and investment thresholds, helping investors weigh the tax advantages of SEIS vs EIS. Feature SEIS (2025/26) Target Company Stage Very early-stage (up to 3 years trading) Employee limit 25 employees Maximum Investment by Company £250,000 Gross assets limit £350,000 Maximum Investment per Investor £100,000 per tax year Income Tax Relief 50% Investor Eligibility Individual UK taxpayers only Advance Assurance Available Investment type Full-risk ordinary shares Capital Gains Reinvestment Relief Exempts 50% of a gain if reinvested into SEIS shares Capital Gains Disposal Relief No CGT on gains from SEIS shares held 3+ years Loss Relief Offset losses against income or gains Inheritance Tax (IHT) Relief 100% exemption(Share must held for at least 2 years) How This Affects Your Business Some businesses will benefit from the higher Employment Allowance. But for many, the increase in NICs will lead to: Increased Payroll Expenses What does this signify? Every employee in your company will now receive a higher NIC payment, particularly if they make more than £5,000 annually. Your company will need to pay more for wages and salaries as a result of the NIC rate increase from 13.8% to 15%. For instance, your payroll expenses may increase affectedly if you employ a large number of people or minimum wage workers. Lower profits What does this signify? Your company will make less money since it is spending more on NICs (and possibly other growing expenses). This implies that after all costs (such as salaries, bills, and taxes) are covered, you have less money. For instance, your profit margin—the amount of money left over after expenses—will decrease even if your revenue remains constant. This is because you will have to pay more in NICs and other expenses. Less cash available for growth or hiring What does this mean? Your company can have less money to invest in expansion or hiring additional staff if expense is higher and profit is lower. This might restrict your company from expanding, creating new avenues, or having more work. For instance, if your expenses are increasing, you may opt to postpone the recruitment of more staff, the purchase of new machinery, or the establishment of a new branch in a bid to budget for the increased NIC costs. Greater Effect on Bigger Teams The impact of these changes will be even greater if you have a large workforce. Each person will pay a higher NIC, which could result in numerous additional expenses. For instance, one business disclosed that the increase in NICs will result in a £400,000 increase in staff expenses the following year. As a result, they may need to lay off 20 workers in order to cover the additional expenses. Strategies for managing higher NIC costs You don’t have to panic. There are steps you can take to save costs and keep your business strong. Here are some suggestions: 1. Check if you can claim the new Employment Allowance The Employment Allowance allows small businesses to save their NIC bill by up to 10,500 a year. Example: If you hire 3 employees, this allowance might cover most or all of your NICs for them! We can help you on employer NIC solutions at Taxaccolega work out whether you qualify and claim the employment allowance to reduce your NIC payment. 2. Use salary sacrifice This means employees can exchange part of their salary for things like pension contributions. This reduces your NICs. For instance, you can save £300 in NICs (15% of £2,000) if an employee agrees to take £2,000 less in salary and you put it into their pension. To maximise your NICs and employee benefits, our skilled accountants at Taxaccolega can help you set up a salary sacrifice plan. 3. Use freelancers or self-employed workers Think about using contractors or freelancers rather than full-time employees. Employer NICs are typically less expensive. For instance, it may be less expensive to hire a freelancer rather than hire a full-time staff member if you need assistance with a project. 4. Outsource where possible Consider outsourcing jobs like payroll, marketing, or HR to reduce permanent staff costs. Example: By outsourcing your payroll processing to experts like Taxaccolega, you can reduce the cost of hiring full-time staff and improve your efficiency. Our team at Taxaccolega provides professional outsourcing services, helping
R&D Tax Relief Regulations 2025: Merged RDEC & ERIS
R&D Tax Relief Regulations 2025 Merged RDEC & ERIS You might be eligible for Research and Development (R&D) tax relief if your company makes investments in technology, innovation, or process enhancements. HMRC has made significant changes to the way R&D tax relief operates in the UK as of 1 April 2024. Two new schemes have taken the place of the previous RDEC and SME programmes: ● Integrated R&D Expenditure Credit (RDEC) ● ERIS (Enhanced R&D Intensive Scheme) plan Taxaccolega discusses the implications of these changes for your company, who is eligible to make a claim, how much you stand to gain, and how to choose the best plan for you in this blog. What’s new in from April 2024? The government has combined and simplified the prior R&D schemes. Now, depending on your company size and R&D intensity, you may claim under. Scheme Who Can Claim Benefit Merged RDEC scheme All UK companies doing R&D 14.7% 16.2% from R&D (after tax) ERIS Scheme Loss making, R&D-intensive SMEs only 27% of R&D cost in cash (tax-free) Table of Contents Merged RDEC vs ERIS – Which Is Right for You? ✅ Other Important Information How Taxaccolega Can Assist For the majority of companies, the merged RDEC scheme The merged R&D Expenditure Credit (RDEC) scheme is now the default for most UK businesses. 20% of your R&D expenditures may be credited if you are engaged in qualifying R&D work. It is included in your income, so it is taxed. Depending on your corporation tax rate your net benefit after taxes ranges from 14.7% to 16.2%. ✅ Principal attributes: ● Available to businesses of all sizes ● Suitable for businesses that make money as well as those that don’t ● Staff, supplies, and certain subcontractor expenses may be included ● Subject to a PAYE/NIC cap For instance: If your business invests £100,000 in eligible R& D: ● A £20,000 RDEC (20%) is given to you. ● The benefit is approximately £14,700 to £16,200 after taxes. ERIS Scheme: The Enhanced R&D projects for R&D-intensive, loss-making SMEs For SMEs that incur losses and invest significantly in research and development, the Enhanced R&D Intensive Scheme (ERIS) UK programme provides more advantages. ● If you are an SME (less than 500 employees and less than $100 million in turnover), you are eligible for ERIS. ● You’re causing losses. ● At least 30% of your overall business expenses go toward research and development. If you qualify, you can surrender your loss for a 14.5% cash credit, which is entirely tax-free, after deducting 186% of your R&D expenses from your loss calculation. For instance: ● If you spend £100,000 on R&D, you subtract £186,000 from your earnings. Merged RDEC vs ERIS – Which Is Right for You? Scenario Recommended Scheme Why? Profit-making company Merged RDEC ERIS not available for profit-makers Loss-making, low R&D spend (<30%) Merged RDEC Doesn’t meet intensity requirement for ERIS Loss-making, high R&D spend (≥30%) ERIS (or Merged RDEC) ERIS gives higher benefit, but you can opt out ✅ Other Important Information ● PAYE Cap: The maximum amount for both plans is £20,000 + 300% of your R&D PAYE/NIC obligations. ● Overseas Costs: Northern Ireland businesses benefit from ERIS’s greater generosity, which permits claims for employees who work abroad. ● Grace Period: You might still be eligible for ERIS this year if you passed the R&D intensity test the previous year. How Taxaccolega Can Assist Our knowledgeable R&D tax advisors in Croydon are able to: ● Determine if your business is eligible for the combined RDEC or ERIS scheme. ● Review eligible R&D costs to maximise your claim. ● Manage all HMRC submissions and make sure the new regulations are followed. ● Assist you in applying for Advance Assurance, which guarantees your claim will be approved. Whether you’re a big manufacturing company or a developing tech SME, R&D tax relief may provide substantial cash flow support. We’re here to help you every step of the way. Contact Us Right Now Taxaccolega: London Chartered Accountants Croydon, London Allow innovation to reward you. Discuss your R&D tax relief claim with Taxaccolega right now. CTA Box See How Much You Can Save CALL NOW Take the stress out of UK taxes and accounting today — speak with a top-rated Taxaccolega chartered accountant for personalised advice tailored to your business or personal needs. Book a free Consultancy Related Posts ID Verification × ID Verification Form For Companies House From 18 November 2025, UK law will require all company Directors and Persons with Significant Control (PSCs) to verify their identity with Companies House. Companies House will issue a personal code to PSCs. Taxaccolega (ACSP) can help collect data and assist. Please answer the questions and upload documents. Personal Details Fornames * Last Name * Date of Birth *
Higher Employer NICs in 2025 Action Plan for Small Businesses
Higher Employer NICs in 2025 Action Plan for Small Businesses You might be eligible for Research and Development (R&D) tax relief if your company makes investments in technology, innovation, or process enhancements. HMRC has made significant changes to the way R&D tax relief operates in the UK as of 1 April 2024. Two new schemes have taken the place of the previous RDEC and SME programs: ● Additionally, more small businesses in London are now eligible to receive this allowance because the £100,000 earnings cap has been removed. Table of Contents Employer NIC Costs for a full time Minimum Wage Employee How This Affects Your Business Increased Payroll Expenses Lower profits Less cash available for growth or hiring Greater Effect on Bigger Teams Strategies for managing higher NIC costs 1. Check if you can claim the new Employment Allowance 2. Use salary sacrifice 3. Use freelancers or self-employed workers 4. Outsource where possible 5. Let more staff work from home 6. Review all your spending 7. Use better financial tools 8. Ask your staff for cost-saving ideas How Other London Businesses Are Responding Final Thoughts: Stay Positive, Plan Smart Employer NIC Costs for a full time Minimum Wage Employee Details Before April 2025 After April 2025 Our Wage £11.44 £12.21 Hours Per Week 37.5 37.5 Weeks Per Year 52 52 Annual Salary £22,308.00 £22,308.00 NIC Treshhold £9,100.00 £5,000.00 Taxacle £13,208.00 £18,809.00 NIC Rate 13.80% 15% NIC Payable £1,822.70 £2,821.43 Extra Cost Per Employee £998.72 How This Affects Your Business Some businesses will benefit from the higher Employment Allowance. But for many, the increase in NICs will lead to: Increased Payroll Expenses What does this signify? Every employee in your company will now receive a higher NIC payment, particularly if they make more than £5,000 annually. Your company will need to pay more for wages and salaries as a result of the NIC rate increase from 13.8% to 15%. For instance, your payroll expenses may increase affectedly if you employ a large number of people or minimum wage workers. Lower profits What does this signify? Your company will make less money since it is spending more on NICs (and possibly other growing expenses). This implies that after all costs (such as salaries, bills, and taxes) are covered, you have less money. For instance, your profit margin—the amount of money left over after expenses—will decrease even if your revenue remains constant. This is because you will have to pay more in NICs and other expenses. Less cash available for growth or hiring What does this mean? Your company can have less money to invest in expansion or hiring additional staff if expense is higher and profit is lower. This might restrict your company from expanding, creating new avenues, or having more work. For instance, if your expenses are increasing, you may opt to postpone the recruitment of more staff, the purchase of new machinery, or the establishment of a new branch in a bid to budget for the increased NIC costs. Greater Effect on Bigger Teams The impact of these changes will be even greater if you have a large workforce. Each person will pay a higher NIC, which could result in numerous additional expenses. For instance, one business disclosed that the increase in NICs will result in a £400,000 increase in staff expenses the following year. As a result, they may need to lay off 20 workers in order to cover the additional expenses. Strategies for managing higher NIC costs You don’t have to panic. There are steps you can take to save costs and keep your business strong. Here are some suggestions: 1. Check if you can claim the new Employment Allowance The Employment Allowance allows small businesses to save their NIC bill by up to 10,500 a year. Example: If you hire 3 employees, this allowance might cover most or all of your NICs for them! We can help you on employer NIC solutions at Taxaccolega work out whether you qualify and claim the employment allowance to reduce your NIC payment. 2. Use salary sacrifice This means employees can exchange part of their salary for things like pension contributions. This reduces your NICs. For instance, you can save £300 in NICs (15% of £2,000) if an employee agrees to take £2,000 less in salary and you put it into their pension. To maximise your NICs and employee benefits, our skilled accountants at Taxaccolega can help you set up a salary sacrifice plan. 3. Use freelancers or self-employed workers Think about using contractors or freelancers rather than full-time employees. Employer NICs are typically less expensive. For instance, it may be less expensive to hire a freelancer rather than hire a full-time staff member if you need assistance with a project. 4. Outsource where possible Consider outsourcing jobs like payroll, marketing, or HR to reduce permanent staff costs. Example: By outsourcing your payroll processing to experts like Taxaccolega, you can reduce the cost of hiring full-time staff and improve your efficiency. Our team at Taxaccolega provides professional outsourcing services, helping you streamline operations and reduce costs. 5. Let more staff work from home If more people work remotely, you may be able to rent a smaller office and save money. Example: With more staff working from home, you can free up your office space and save money on your bills. 6. Review all your spending Go through every expenditure in your business subscriptions, vendors, services and figure out what you truly need. Example: A company saved £1,000 a year by ending software they weren’t using. 7. Use better financial tools With modern accounting software and cash flow boards, you can track expenses, monitor cash flow, and see early on where savings opportunities exist. Example: With the right tools, it’s easy to spot where you’re overspending and make good choices. At Taxaccolega, we offer financial consulting services and can recommend the best bookkeeping software to assist you in optimising your business finances. 8. Ask your staff for cost-saving ideas Your staff
Maximise Savings, Minimise Tax
Maximise Savings Minimise Tax Table of Contents Capital Allowances for Commercial Property Owners What Are Capital Allowances? How Do Capital Allowances work? Eligibility for Commercial Property Capital Allowances Main Types of Capital Allowances 100% First-Year Allowances The Super-Deduction and 50% Special Rate First-Year Allowance Key Functions: What You Could Claim: Capital Allowances for Business Cars Who Can Claim Who Cannot Claim Prices for Claims: Full Expensing and 50% First-Year Allowance You Can Claim If: What You May Declare: Capital Allowances for Commercial Property Owners If you’re a commercial property business owner in Croydon, London, you are probably aware of the regular pressures of taxes eating into your earnings. but, there may be exact information capital Allowances can substantially reduce your tax burden and allow you to maintain more of your difficult-earned income. In this manual, we’ll walk you through everything you need to know about capital allowances for organisations inside the UK, such as how to declare them, commonplace errors to keep away from, and steps to maximise your claims What Are Capital Allowances? Capital allowances are a tax comfort device that permits businesses to claim deductions for the capital assets like equipment, machinery and vehicles over the years. The main benefit of claiming capital allowances is the discount on your taxable income, thereby decreasing your overall tax liability. How Do Capital Allowances work? In simple phrases, capital allowances allow you to deduct the cost of qualifying capital costs (including machinery, fixtures, or strength-saving property) from your taxable earnings. This helps lessen the amount of tax your enterprise has to pay each year. Eligibility for Commercial Property Capital Allowances ● You must be carry on a business or trade (including professions or vocations). ● The asset must be used wholly or partly for business purposes. ● You must own the asset (not lease it, unless it’s a hire purchase or long funding lease). ● The asset must be qualifying plant and machinery, which can include: ● Equipment and machinery ● Business vehicles (e.g. vans, lorries – not cars for cash-basis traders) ● Fixtures in commercial property (e.g. air conditioning, lighting, heating systems) ● You must not have claimed the asset as a business expense elsewhere (i.e. through revenue deductions). ● If you’re using the Annual Investment Allowance (AIA), the total claim must be within the AIA limit. ● Residential landlords generally cannot claim, unless the property qualifies as: ● Furnished holiday lettings (FHLs) ● Part of a business such as a guest house or hotel Main Types of Capital Allowances Tax tips from Taxaccolega Accountants Croydon, London If your business buys equipment or machinery you can now claim full tax relief thanks to Annual investment allowance AIA review: The Annual Investment Allowance (AIA) allows the organisations to claim 100% of the cost of qualifying plant and equipment against to taxable earnings. Eligibility: You may claim AIA if you are a business, sole trader, partnerships and limited companies on maximum plant and equipment like office device, equipment, gear, and laptop structures. AIA limit: The AIA limit of £1 million is permanent, as confirmed in the Autumn Budget 2024. Exclusions: Business automobiles do no longer qualify for AIA, nor do objects you owned for personal use earlier than using them to your enterprise. 100% first-year allowances 100% First-year Allowances (FYA) permit groups to deduct the whole cost of qualifying assets from their taxable earnings within the year of purchase. you may claim FYA on new and unused assets, which includes: ● Electric vehicles or those with zero CO2 emissions. ● Plant and machinery for gasoline refuelling stations or electric vehicle charging factors. ● zero-emission items cars. ● Equipment for electric vehicle charging points. Item Types Qualifies Notes Electric Car Yes Must be new and zero – emission Ev Charging Point Yes Must be installed before April 2026 Second-Hand Vehicle No Used items don’t qualify Plant and Machinery Yes Must be on the Energy Technology List This allowance can be claimed in addition to the Annual Investment Allowance (AIA), but not on the same expenditure. If you’re a company, you may also be eligible for full expensing or a 50% first-year allowance. However, you cannot claim FYA on items bought to lease or used in rental properties. Ensure you’re making the most of these tax-saving opportunities with expert advice. At Taxaccolega Accountants Croydon, we’ll help you: ● Check if your purchases qualify ● Maximise your capital allowances ● Save the most on your tax bill 📞 Call Us or visit Taxaccolega for personalised advice! The Super-Deduction and 50% special rate First-year Allowance The super-Deduction and 50% special rate First-year Allowance are tax remedy options to be had simplest to companies. Those allowances assist you to declare deductions on certain plant and equipment purchases, providing a widespread reduction to your taxable profits. Key functions: ● Eligibility: Most effective available to companies. ● Duration: Applicable to equipment from 1 April 2021 to 31 March 2023. ● Asset situation: New and unused. What you could claim: Exquisite-Deduction: Allows you to deduct 130% of the asset fee out of your income earlier than tax. 50% special price First-year Allowance: Deducts 50% of the price out of your income earlier than tax for positive qualifying property.be aware: You can’t declare each allowances at the same expenditure. make sure to pick out the only that maximises your tax financial savings. Those allowances are a remarkable manner for businesses to reduce tax liability even as making an investment in critical assets. Capital Allowances for Business Cars When you buy a car for your business purposes you can easily save taxes. Expert accountants at Taxaccolega help you to claim capital allowances on your business vehicle right away you just need to contact use now. Claim tax deduction when you buy automobile for business purpose this means you simply write off part or all of the car’s cost over time to reduce your taxes. If the auto is electrical or has zero CO2 emissions, you can qualify