If you’re a business man or company owner in the United Kingdom, you’ll be coming across the phrase “Seed Capital Scheme”. In fact, any body that has used Seed Capital or Seed money to start off his or her business ought to know more about seed capital scheme. UK angel investors are sure to be very conversant with the scheme since they are primarily the sources from where many business men and woman receive seed capital for business take-off.
However, Seed Capital Scheme is an avenue used in refunding back the tax you have already paid in setting up your business. It also concerns people that pay income tax upon their employment in a company or firm. The scheme is primarily aimed at refunding such taxes to the individuals involved. UK angel investors are very much aware of this. This is because of their full time involvement in dishing out seed capital to business men and company founders that need such.
Indeed Seed Capital Scheme is very operational in the United Kingdom. If you’re going into business in the UK, you must have to be well informed about the processes involved in the Scheme. Every business man or woman in the UK especially, business developers, starters and company founders who desire to go for seed capital to begin their various business ventures need to be well informed about seed capital scheme. This goes a long way to helping them in maximizing the benefits that accrues from investing in seed capital through the help of angel investors based in UK.
In order to be fully conversant with Seed capital Scheme, you need to know the following features about it:
There is always a purpose behind every venture in life. Indeed, seed capital scheme has a real definite purpose. You need to be well informed about this. The scheme is designed to help anybody who is interested in starting his or her own business to have the unique opportunity of benefiting from the tax refund to which they may be entitled to as it pertains the same seed capital scheme. Again, this benefit can also be for employees in a company or firm. Such employees may decide to quit their work and invest their earnings in shares of another company that has another business approach. Such individuals may now claim a refund of their various income taxes which they paid in the former years. With such refunds, they can re-invest in a new business on their own. This scheme also applies to unemployed individuals especially those of them that want to go into their own business venture. Thus, from the above, Seed Capital scheme is actually for your benefit. When you obtain a seed capital from UK angel investors, you need to have this in mind in order to benefit more from the entire process. You can always ask the UK angel investors to clarify more about the process since they are the ones at the dishing end of the fund needed for your business take-off.
Again, you also need to know that the seed capital scheme is geared toward business expansion in the UK. It is one avenue the government has set up to help upcoming entrepreneurs. The scheme gives you income tax relief which in turn enables you to invest properly in the business of your chose.
The Refundable Tax involved
You also need to know more about the refundable tax involved in seed capital scheme. You need to be aware that the refundable tax due to you depends on the volume of your investment over the years. In the United Kingdom, it is very possible for you to receive all the income tax you have already paid for over six years. For those with bigger investment, more refundable cash from the tax await them.
Again, you have the freedom to make the choice of the actual years you’re eligible to claim the tax refunds. This should be within the period of the six years. You can even claim the income tax you paid in all the six years provided your investment is equally up to the standards. As you go about this wonderful seed capital scheme, you also need to know that the refund you expect is limited to the tax you paid within those years. Nothing goes without something. You can eat your cake and have it back. If actually you’re the type that dodges the required tax needed to be paid, there’s no way for you to claim anything under the seed capital scheme. On the other hand, if you’ve been regular in tax paying demands, you can always claim the refund once you’ve begun running your new business or company. As you acquire the seed capital from UK based angel investors, ask them about this wonderful scheme and how it applies to your own case.
Know the right Tax Agency
You need also know the appropriate tax agency to approach for the tax refunds under the seed capital scheme. Most UK angel investors know the right tax agency for you. Always ask questions when you’re in doubt. Oftentimes, people make mistakes when they don’t know who to ask. Again, so many people are in the dark concerning the income tax refund scheme which has been designed to help them. Don’t be in that group. You need to know the right agency to contact.
Research more on the scheme
Information is very vital in this age of technology. The seed capital scheme is not a static process. It is actually very dynamic. New innovations and processes are regularly involved. You need to take note of this by studying about the scheme often and online. You can always get more information online, in the newspapers, TV channels and in business books and magazines.
In all, the seed capital scheme is designed to help you maximize your business plan as you take off. Do well to take note of all the details stated above in order to enjoy the benefits of the scheme.