Microcosm - 2nd Seedrs crowd-funding round

@rive_gauche

So, if i'm reading that correctly, i can claim all the remaining outlay (50% not already claimed) as loss against income tax?

Meaning i'd have claimed 100% of my original investment back? That seems unlikely.

You didn't actually get back 50% of the investment amount though, did you?

Put in £1k = £500?

Yes. The original income tax relief for a £1k investment is £500.

I received 50% back of my original investments (both round 1 and round 2).

i can claim all the remaining outlay (50% not already claimed) as loss against income tax?

yes

Meaning i'd have claimed 100% of my original investment back? That seems unlikely.

no. the loss goes against your gross income, so your taxable income shrinks by the value of the loss. so you don't pay tax on that £500. if you're a higher rate taxpayer, you save 40% of the £500 (£200).

I gather.

thanks @hamster

lower rate taxpayer: for a £1,00o investment, 50%, or £500 relief on your income tax due to SEIS investment vehicle, then 20% (£100) on the remaining £500 due to dissolution - making £600 in total offset against your income tax - probably over a number of tax years, although if you've claimed nothing yet then you can offset it against this year's tax, which will reduce the amount you pay in January and July next year.

higher rate taxpayer: as hamster illustrated

upper rate taxpayer: initial 50%, then 45% (£225) of remaining £500

claim in box 11, with details in box 19 - remember it's SEIS not EIS..

Thanks.

So i submitted a 2012/13 and a 2013/14 return with my round 1 and round 2 investments included; claiming 50% back of each.

Should i now submit a 2014/15 return, placing the total claim amount (40% of remaining 50%) in box 11 and explain the dissolution in box 19?

If so, what details need to be included in 19? Just the dissolution reference along with the investment amounts and what has already been reclaimed?

you got it :)

add the notes from previous box 19s as they should have the share allocation reference under SEIS

https://assets.seedrs.com/uploads/progress_report/document/289/cs404m7h4q97kudxqdz1lfitrc1ct1r/Microcosm_Dissolution_Notice.pdf

Huh, didn't notice but I got 9 quid back via Seedrs. Topped it up and threw it into FreeAgent.

I'm struggling to work this out on PAYE

:/

Explain your difficulties in more detail

Well, I ain't getting a bean back.

How many beans did you put in?

My 9 beans were from 600 odd beans. That's before all this tax relief lark.

I have no idea what I'm doing dog.jpg

PM me if you want

OK thanks.

useful summary > https://www.syndicateroom.com/investors/seed-enterprise-investment-scheme-seis-tax-relief

Right, I've finally got the first bit of this all sorted (yes, I know, idiot for leaving it so long etc) and now need to get the second bit moving. As I'm on PAYE, I'm now a little confused as to how I go about getting the Loss Relief bit sorted out. I suspect that I may need to send in some form or another, but HMRC where all a bit wooly about it when I spoke to them about the first bit, and so I was wondering if anyone here had managed the second yet...

Cheers!

Get a tax accountant to advise

@MrDrem Did you get any further with this? After putting it off for far too long, i'm about to start the same process

Loss relief has to be claimed via a tax return. I don't know any other way.

There's a Q&A on the 'moneysaving expert' site, and you'll probably end up completing only 2 boxes of 10 page form. A little hassle, but it is your money so get it back! The sooner that you do this bit of admin, the sooner you will get money back.

Tips -

1. register online on the HMRC website (make sure it is the HMRC website as there a couple of 'processing' companies who seek to take advantage of the looming tax deadline).

2. HMRC will send you an additional log in identifier after a few days, allowing you to complete the form

3. Submit the form. It should be relatively straightforward with either a payment into your nominated account or an adjustment to your tax code.

thanks, i'll look into it this evening

@MrDrem @dt I had a go at this last night. There don't seem to be any worked examples online for this specific scenario but I'm happy to discuss this through with anyone else working through their SA. I'm hesitant to post my process in public here in case it's incorrect, don't want to mislead.