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What should I include in my Business Plan for my SEIS - EIS Advance Assurance application?

What to include and avoid in your business plan for SEIS and EIS Advance Assurance 

HMRC requires your Advance Assurance application to include a business plan (also referred to as the pitch deck or investor plan). Generally speaking, the information you present to potential investors to entice them to invest is the best starting point.

However, HMRC is looking for specific evidence that your company meets the "Risk to Capital" condition and isn't involved in "excluded activities." Below is a breakdown of what to include, how to structure it, and common pitfalls to avoid.

What to Include: The Main Headings

We suggest including the following sections to ensure your plan is clear and concise:

  • The ‘Problem’ & Solution: Clearly define the gap in the market and how you fill it.

  • Business Model: Explain how the company will actually make money.

  • Intellectual Property and Structure: Details on any IP owned by the company and its corporate setup.

  • Competitors and Market Size: Show the potential for growth and development.

  • The Team Profile: Highlight the experience of the founders and key staff.

  • History and Progress: What has the company achieved to date?

  • Roadmap: What are the next milestones for the business?

  • Financials: (See below for details on projections).

  • The Ask & Use of Investment: (See below for details on the breakdown).

5 Essential Tips & Common Mistakes to Avoid

Ensuring your business plan meets all of HMRC’s requirements is vital. Here are the most common areas where founders go wrong:

1. Add a clear product description

This may appear obvious but is often overlooked. It is easy to jump from a problem to a solution without a clear demonstration of what the product is and what role it plays.

This is crucial because HMRC has a list of “excluded activities” (such as banking, insurance, property development, or legal services) which are exempt from relief. A clear description is necessary to prove you don't fall within these restrictions. For a full list of these restricted trades, you can refer to the official HMRC list of excluded activities.

Tip: If you are a Fintech platform that doesn't handle money directly (e.g., an intermediary), state this clearly so HMRC doesn't mistake your trade for an excluded financial activity.

2. Use a SWOT analysis for "Risk to Capital"

Identifying areas of risk is often overlooked because founders don't want to focus on the negatives. However, identifying risks will not deter future funding in this context—it actually helps prove you meet the Risk to Capital condition.

We recommend including a Strengths, Threats, Opportunities, and Weaknesses (SWOT) analysis. An additional slide covering key bullet points under each of these headings is sufficient to show HMRC that there is a genuine risk to the investor's capital.

3. Provide a detailed breakdown of the "Ask"

You must include a breakdown of how you intend to use the investment, including which work will be outsourced.

  • Consistency: Ensure the amount in your business plan matches the amount on your application form.

  • Eligibility: If the money is spent on a disqualifying trade (e.g., 80% spent on acquiring new property), it may eliminate the element of risk and invalidate the application.

4. Remove any "Exit Strategy"

While ambition is great for investors, mentioning an exit strategy can invalidate your application. HMRC may see exit strategies, buy-outs, or potential acquisitions as a way of "de-risking" the investment. Remove these entirely from the version you send to HMRC.

5. Don’t mention you are "SEIS/EIS Eligible"

It is not necessary to mention eligibility in your plan. If you do, it is essential to note that this is "pending approval." HMRC does not like seeing plans that claim to be approved before they have had the chance to do so.

Technical Requirements for 2026

When building your roadmap and financials, keep these current limits in mind:

  • SEIS Limit: You can now raise up to £250,000 under SEIS.

  • Company Age: For SEIS, your company must have been trading for less than 3 years (up from 2 years previously).

  • Gross Assets: Your gross assets must be under £350,000 for SEIS (up from £200k), and £15m for EIS.

  • Financial Projections: HMRC requires a chart outlining projected profit and loss over the next 3 years. It is perfectly acceptable to show a negative net profit for the first few years as the company grows.

We'll be sure to help you ensure the business plan is clear and concise as part of our Advance Assurance review, where we maintain a 98% success rate.

 

For other articles to help with your business plan and Advance Assurance application, please see below:

https://seedlegals.com/resources/seis/

https://seedlegals.com/resources/eis-scheme/