A short video to highlight a potential issue relating to the impact of changes to the Employment Allowance on SEIS investment limits with effect since 6 April 2020.
This is not a new change but it doesn't appear to be widely appreciated, so I thought it was worth (re)flagging.
The SEIS has been classified as De Minimis State Aid since inception but the Employment Allowance has only fairly recently (April 2020) been reclassified as De Minimis - this means that it now counts towards the maximum funding limit under SEIS (£150,000) since 6 April 2020.
On this basis, entrepreneurs and founders of companies that are seeking funding under SEIS need to take care to ensure that they don't breach these de minimis rules.
They also need to disclose the employment allowance in their disclosures to HMRC regarding de minimis funding already received, if they claim it.