HM Revenue & Customs (HMRC) has launched a consultation into proposals which it has claimed will streamline clearances for those firms making use of venture capital schemes and various tax reliefs.
HMRC is looking for input about the best way to simplify the advance assurance service for reliefs, including the Enterprise Investment Scheme (EIS), Seed Enterprise Investment Scheme (SEIS) and the Social Investment Tax Relief.
HMRC has said that changes need to be made in light of the fact that demand has trebled since 2011-12.
The consultation document said: “Demand is increasing significantly, and if this trend continues it will have an impact on the service standards we can deliver. Any delays can affect investment deals and the future funding of companies.”
This has been a problem for some time now and is compounded by the fact that if queries arise in relation to an application, HMRC raise the questions without a shortcut protocol for responses. This means that they start at the bottom of the pile with the associated time delays.
Until things change, the key is to put together a comprehensive initial application and cover all bases. We have extensive knowledge of this process at Wilson Wright and have an excellent record of HMRC acceptance without query. Please do get in touch if we can help in any way.