• Company structures for startups

    The current economic climate in the UK has been referred to as a “Golden Age” for startups. It is anticipated that more than 600,000 new businesses will be launched in 2015. Getting the right company structure is of huge importance to ensure that the new business is structured for growth, investment and tax efficiency.

  • EIS: Investment by Existing Shareholders

    In the Queens Speech 2015, HM Government announced changes to the availability of EIS relief to investors who already hold shares in the capital of the investee company. These changes are of relevance both to investors who have already invested in a company and to new investors.

  • Knowledge Intensive Companies

    HM Government have announced a number of changes to the EIS and VCT schemes this year including the creation of special preferential terms for “knowledge intensive companies”.

    This note looks at what knowledge intensive companies are and how they are now treated.

  • Dilution: a brief explanation

    Dilution in the context of investment rounds often causes confusion. For SEIS/EIS investors, anti-dilution protections are prohibited; for other shareholders, anti-dilution provisions are viewed as very aggressive and problematic.

    This briefing is intended to clarify the position and explain why dilution is not necessarily a bad thing.

  • Incentivising Employees

    Startups and more established SMEs have in recent years become ever more able to access a plethora of ways to incentivise key employees.

    This article sets out the main points both startups and SMEs should consider when deciding which type of scheme to set up.

  • Budget 2015 – SEIS/EIS Changes

    HM Government has announced a number of (mostly welcome) changes to the SEIS and EIS schemes. The changes should further encourage expansion of the schemes to the benefit of investors and founders alike.

    This briefing provides a summary of the main changes.

  • Seed Enterprise Investment Scheme

    SEIS is one of the most generous (and widely used) tax incentive schemes for investors in startups in the world. Every entrepreneur needs to know about it and (where possible) take advantage of it.

    This note explains the basics of SEIS.

  • EMI (Enterprise Management Incentive)

    Enterprise Management Incentive (“EMI”) options are tax efficient options for employees in smaller, high risk companies. The intention behind the EMI  legislation was to help companies recruit and retain the highest standard of individuals.

  • Budget 2014: SEIS & SITR

    This briefing sets out the changes relating to SEIS and the new SITR relief as announced by the Chancellor in the Budget 2014.

    The good news for startups is that SEIS and EIS have been retained and a new equivalent scheme for social enterprises has been created.

    Here is a summary of the main changes.

  • VAT treatment of online businesses

    The VAT treatment for online businesses is changing from 1 January 2015.  Services provided by a UK business via a website or app will be liable for VAT in the country where the service is purchased and not (as now) in the UK.