EIS3 (Tax Relief) Form


(Vladislav Kozub) #1

Not sure if that is the case for everyone, but my Freetrade Tax Relief form from Crowdcube has arrived so check your post boxes just in case you did not expect one on Saturday :wink:

It seems like it was physically signed by @freetrade_cal and I wonder if he had to do that 2000 times… :grimacing:


#2

I got mine today as well. Seems like he did have to complete 2,000 forms

Seedrs have digital certificates, which make more sense to me, plus would have saved a lot of hours.


(Vladislav Kozub) #3

I honestly did not think they meant manually sign!


#4

It’s more than just sign, he had to complete 3 boxes I think, and maybe even check the forms are correct.

I’ve had forms with bad information and then they had to resend them.


#5

:memo: :exploding_head:


(Jim) #7

@freetrade_cal


#8

Yes he did!


(Calum McWhir) #9

In my head:

giphy


(Maarten) #10

Hi, @Toby I have received my EIS3 form. Thanks for that! This might be because this is my first EIS form to fill out… but how come the nominal value of each share is £0.0000001?

Cheers


(Calum McWhir) #11

Good stuff! :tada:

Short answer is that it means very little, is an arbitrary amount and purely an accounting mechanism.

Longer answer is that when distributing shares to a large number of shareholders (i.e. you guys) and taking into account that it is possible to invest just £10 on Crowdcube, reducing the nominal value increases the number of shares issuable, so the price per unit is lower.

Hope that helps, but if not just focus on the price you paid for each share at R3 (circa 52p) and use the share price for future raises to calculate the performance. :raised_hands:


(Michael Mccarthy) #12

What’s the quickest anyone has received the eis relief I’ve done mine via annual tax return every year I’m a bit short on cash flow and the next macrebur funding round is due on seedrs in the next few weeks might use the cash from this tax relief to invest in them


(Dan Beddows) #13

I guess it depends how complicated the rest of your tax return is.

My tax return is pretty straightforward and is typically approved within 2-4 days, and the EIS relief paid by HMRC about 5-7 days after that.


(Matteo) #14

Hello everyone,
I finally got my EIS tax relief and I was reading how to obtain it. As you can imagine it is my first one and I’m not exactly sure how to proceed.
From what I understood it can be done online with the self tax assessment but I’m not quite sure. Is it correct?
If not how exactly work the claim?

Thanks!


#15

still waiting for mine…


(Calum McWhir) #16

Hey, best to drop us a line on Live Chat for individual queries. We can send a replacement once we check we have the correct address! :grin:


#17

Will do :slight_smile:


#18

Sorry no one replied for a month. I didn’t want to reply as I basically just wing it every time and hope for the best, so thought maybe someone who knows what they’re doing might answer your question concisely and help me understand it better myself, but since they haven’t here’s what I do to get the tax back (done it 5-10 times in the last few years).

I’m not registered for self assessment (you want to stay away from that if you can, as you’ll have an annual obligation to fill in a bunch of crap or get fined) so this only applies for PAYE. I guess for self assessment you’d need to wait until your submission time and send off your eis forms along with that.

The EIS3 document has a left page and a right page. Tear off the left one and keep for your records. Fill in the right one one and send to your tax office (make a copy or take a pic of it in case their one disappears).

If I recall you need to enter your national insurance number, the amount of relief you are claiming (enter full investment amount, not 30% of it), then it asks which year you want to claim for (I enter previous year as I have plenty of allowance going back), then it just asks for your signature and tells you to send it off to “your tax office”.

I don’t even know what my tax office is but I just google the address for HMRC Birmingham and address it to them FAO Pay As You Earn.

It normally takes about a month or so before I get a letter saying my tax has been recalculated for that previous year and I can log into their impossible-to-login-website to advise where to send the funds or they will post a cheque if no response in 30 days. As I can never log in I just wait for the cheque in the post.

If anyone has the “proper” way to fill out the form please let us know!

Cheers


(Dave Smith) #20

I’m PAYE as well, I did pretty much the same, takes me ages to figure out which address to send it to, then I forget before the next time I have to do it :smiley: . I don’t think regional tax offices are a thing anymore…


(Matteo) #21

Hi @rarther, thank you very much for your reply and suggestions!
Your description is absolutely spot on!!!
I ended up calling directly the HMRC and they told me pretty much the same as you did, after I emailed Crowdcube where they told me they couldn’t give me any advice.

Claiming for the full amount is also important and not particularly clear from how is worded, at least for me.
They also told me what was the investor tax reference because I couldn’t figure out what it was and where to find it. Apparently was on my P45 as Employer PAYE reference. Good luck associating it by myself.
They also told me to send it directly to them addressed as:
PAYE
HMRC
BX9 1AS

Thanks again!


#22

Glad to hear I’m not doing it all wrong and glad you managed to work it out!

I have actually made that booboo before. I invested £7500 so I wrote £2250 in the “how much tax relief are you claiming” box… and they sent me 30% of £2250! More letters and months wasted but got it fixed in the end.

I don’t renember who told me but I was informed that the investor tax reference is just for those doing self assessment and you can find the number on your self assessment forms. Anyone able to confirm or deny that? I’ve not been writing anything in that box and just writing “not registered for self assessment” next to it.

If that’s wrong they’ve still been paying out without any complaints! :slight_smile:

I think we can all agree that the guidance from HMRC is not great and it really is just winging it and hoping for the best or seeking professional advice. Luckily we have a third option of asking others on the community.

Thanks and good luck to everyone with getting some of their tax back!