We’re fundraising on Crowdcube and if you’re a UK tax payer, you can receive 30% of your investment in TableCrowd back, thanks a generous tax incentive scheme set up by the UK Government.
It sounds too good to be true but we do speak the truth – read on!
1 – What is the Enterprise Investment Scheme (EIS)?
EIS is a tax relief scheme that gives generous tax breaks to investors. If you’re eligible, you’ll get 30% of your investment back right away, with other benefits further down the line.
2 – Will my investment be eligible?
Both the company and you need to be eligible. The great news is that HMRC has already confirmed that TableCrowd is eligible! The basic rule for your eligibility is whether you pay income tax in the UK – in any way at all, whether income received through PAYE as an employee, a freelancer or self employed, through dividends etc.
Investments from £10 upwards qualify.
3 – What tax relief do I actually get?
You’ll be eligible for income tax relief, capital gains tax relief and loss relief.
An example is the easiest way to explain.
Income Tax Relief > If you invest £10,000, you’ll be able to set off £3,000 against income tax straight away. So that means either a cheque back from HMRC as tax rebate or your income tax being set off in the current tax year. We’ll advise you about this at the relevant time.
Capital Gains Tax Relief > If you later sell the shares for £100,000, you would usually have to pay capital gains tax on the gain (like you do for any asset that increases in value, a house for example). If eligible for EIS, you can sell your shares free of capital gains tax.
Loss Relief > If everything goes wrong, then you can claim loss relief at the rate you pay income tax. So for a 50% tax payer, if the value of your shares dropped to zero, you would get a further £3,500 rebate from HMRC (50% of your remaining £7,000 exposure after the income tax relief has been applied).
So on a £10,000 investment, the real exposure for an upper rate tax payer is £3,500, with the added benefit of selling the shares free from CGT later on.
You can scale this calculation up or down based on how much you plan to invest.
4 – How will I get the relief?
We do all the hard work and get you a certificate after the round closes in July. You’ll either send that certificate to your tax office to claim or if you file a tax return, you’ll enter the details online. You’ll then hear back directly from HMRC. It’s really straightforward, but we’ll be on hand to help at the relevant time!
5 – How does this work if I’m on PAYE?
To get your 30% tax rebate, you send your certificate to your local tax office who will then respond with a rebate cheque, or if you file a tax return online each year, you can enter the detail this way.
6 – How does this work if I’m not on PAYE?
Exactly the same as if you are (see above).
This is an overview of the rules, for more information please go here and please seek your own advice should you consider this necessary.
Ready to check out our fundraising plans on Crowdcube, go here. This is your opportunity to own shares in the company and we’d love to welcome you onboard as a shareholder.
#investaware
