Tax scheme

The SEIS Tax scheme is a blatant scheme to help people who pay a lot of tax avoid some of it in return for investing in a startup. (cheaply) Picking up a taxpayer funded bargain.

How about raising the tax threshold for a startup so that the saving would service a small loan that way the entrepreneur gets to keep all of his company.

Ownership is everything, and £250/mth or £3k/yr would service a £10/k loan over 5 years.

Investors and angels aren't always great for a startup for many reasons.

If the startup does sell his company for a small fortune, or makes a good living from it later on he is more likely to spend the money he makes which is good for the economy, while a wealthy investor is more likely to stick it offshore.

The startup may then feel able to start a larger project making more money, but if he has to give a large portion of his companies proceeds or earnings to an investor he may never escape his poverty trap and is stifled.

The gvt will benefit more from people if they stop clipping their wings.

I am of course talking about raising the threshold by around £15k or even more, but startups would be encouraged to 'think lean' to avoid the SEIS scheme and taking on an investor.

Startups live hand to mouth and as we all know cash flow is an issue, so that big £3-5K tax bill once a year really hurts them, so take it away and take away the demanding investor too.

The chancellor and the bankers will like this too as it's another way to land the little people with more debt. And business loans carry a higher rate of interest than mortgages.

Mark Sadler, | Mon 9th Dec 2013 at 21:18