[ˈɛntəpraɪz ɪnˈsɛntɪv skiːm]
The Enterprise Incentive Scheme gives tax relief to individuals investing in startups. It exists to encourage growth and drive innovation.
The Enterprise Incentive Scheme (EIS) is an initiative that offers tax relief to individual investors that buy new shares in a company. This scheme helps companies receive funding that they would not have otherwise and have the ability to grow their business faster.
The EIS can give relief on Income Tax, Capital Gains tax and losses, and allows you to defer Capital Gains tax. For the 2023/24 Tax Year, an individual can claim up to £2 million when investing in HMRC defined "knowledge-intensive" companies, or £1 million otherwise.
Because of the tax relief given by the EIS, it can be a tax-efficient way of investing. This means that investment is done while legally reducing the total tax bill as much as possible.
There are loads of different tax laws in the United Kingdom. IR35 is very important to freelancers and contractors but can be a little confusing. Here, we explain simply what IR35 is and who it can affect.
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Self-employed individuals can use two different methods to expense business vehicle costs. Here, we investigate the positive and negatives for both methods and which one might be right for you.
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