EIS forms - R4

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65

So as someone on PAYE, I just want to get this straight before I submit the form.

Send to:
HM Revenue and Customs
Pay As You Earn and Self Assessment
BX9 1AS

I don’t send a tax return so I should fill in the “Claim to EIS Income Tax relief” section and tick the box saying “I wish relief to be allowed in my PAYE coding” as opposed to the “I am claiming relief for a year which I have already sent a tax return”.

The amount on which I am claiming relief would be the total amount invested instead of the 30% I am hoping to get back.

I want to claim relief on the previous year so I fill in the lower boxes that refer to the previous year. I don’t need to have submitted a tax return to fill this in, correct? It being on the same line as the tax return checkbox has no relevance

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66

Sent my R4 EIS form a while ago, received a tax code change a few weeks ago.

67

Corect, you only fill the amount and year boxes of the preceding year. It would be “2019” if you invested after 6 April 2019.

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68

In addition to the income tax relief from Freetrade R4 I was also able to offset another CC investment that went bust off my income, thanks EIS!

69

Can anyone enlighten me
 are there any advantages for claiming for the previous year over this year?

70

You get the cash back quicker

71

For the amount of relief is this the full amount invested or just the EIS relief? (ie: ÂŁ300 on a ÂŁ1000 investment) - also what is the investor tax reference? (above the NI fields)

thanks

72

You can leave the investor tax reference blank if you are PAYE and you include NI number

It asks for the amount on which you are claiming relief, so the amount invested

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73

It is generally more tax-efficient to claim anything against years that are soon to expire (same goes to pension contributions, self employment losses, etc). If you claim against last year and (hypothetically) have a windfall next year you decide to invest in EIS, you will have two years at your disposal as opposed to one-and-a-bit if you claim against the current year.

Also, if you expect your income (and hence income tax liability) to go down down, you are better off clearing available reliefs in the earliest year possible

As @Dave said, you do not need it if you have NINO. If you were to file self assessment, it would be your Unique Tax Reference (UTR).

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74

Doing my tax return:

  • The name of the company in which you have invested
  • The amount you have subscribed and on which you can claim tax relief
  • The date the shares were issued (this is usually different from the date you invested)

*** The name of the relevant HMRC office and its reference**. Do you know the name of the HMRC office?

75

It used to be HMRC office, and office reference number. Now you can just get a unique investment reference number. Seedrs has a blog post which touches on these changes.

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76

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Hi Guys,
Its probably obvious for most, but I have a little confusion on which year to fill in on Page 3 for EIS form. I am looking to claim tax relief for current tax year (Apr 2019-Apr 2020).
Two questions :

  1. For normal PAYE scenario , is the main red box I have in this image are the only fields I should be filling in ?
  2. Which year I should enter in claim year , the box I marked blue in the image.

Thanks

77

Yeah, That looks right to me

78

Thanks Dave, for the year of claim would it be 2019 or 2020 ? As shares were issued in 2019 but the tax year ends in Apr 2020

79

I think I put 2019, but I can’t remember

80

Thanks Dave

81

You can put either 2019 or 2020.

  • If you fill 2020 (this financial year) your PAYE tax code will be amended and your employer informed so the tax you pay decreses.
  • If you put 2019 (last year) then HMRC will tell you that you paid too much tax, and refund you the extra tax (whitout changing your PAYE tax code)

I prefer the latter as you can go the gov.uk website, enter your bank details and get the money into your bank account after a couple of days of their response.

4 Likes
82

Also always good to use up what you can for the past, so you’re not eating into this year’s “allowance”, i.e. tax liability.

1 Like
83

Thanks for the reply Cadiazm, the second options sounds better after your explanation. For the this second option i.e. using 2019 as the relief year , would I still be filling up the same section (the red box) or the one below (the blue box) which says 'I am claiming relief for a year for which I have already sent in a tax return" ?

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84

Last time I filled as follows:
First checkbox (red zone):

I wish relief to be allowed in my PAYE coding

And the “last year’s section” (blue zone):

For the year ended 5 April 2019
being the previous year

And I received the refund ok :ok_hand:

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