A partnership between Crowdcube and TaxScouts is proving its worth for crowdfunding investors. Since rolling out a joint platform in October, over 1,200 Crowdcube users have submitted claims for over £500,000 in tax relief.
Claiming Enterprise Investment Scheme (EIS) tax relief presents a significant hurdle for many investors. While the scheme offers 30% income tax relief, its complex process, riddled with jargon and paperwork, creates a barrier.
As a result, millions of pounds in potential tax relief remain unclaimed each year. Additionally, while the tax relief can be claimed back through filing a Self Assessment tax return, a large number of Crowdcube investors are on PAYE so do not need to file Self Assessment and have been missing out on the tax reliefs available to them.
Crowdcube’s research reveals that 68% of its investors with a portfolio of £5,000 or less have not yet claimed EIS relief, which means there are tens of thousands of UK investors who have millions of pounds in unclaimed income tax relief.
The user-friendly platform developed by Crowdcube, Europe’s largest private market investment platform, and TaxScouts, whose mission is to take the stress, inconvenience and cost out of doing taxes, eliminates the obstacles in claiming tax relief.
It navigates the intricacies of HMRC on the investors’ behalf and puts the power of tax reclamation directly in their hands. Investors simply upload up to five EIS certificates, answer a few simple questions and TaxScouts completes the forms and submits them to HMRC for a fixed fee of £25.
Not only does the solution simplify the process for future claims, it also offers a window of opportunity to reclaim relief on any eligible EIS investment made within the past five years.
The success of this partnership goes beyond reclaimed pounds. It represents a significant shift towards investor empowerment and financial literacy. Individuals are now equipped to make informed investment decisions and navigate the tax landscape with confidence.
Matt Cooper, co-CEO of Crowdcube, said, Seeing over 1,200 investors access their rightful tax benefits is a powerful validation of our commitment to empower our community. TaxScouts has been an invaluable partner in simplifying the process and unlocking financial benefits for our investors.”
Mal Cowley, CEO of TaxScouts, added, “The numbers speak for themselves: £500,000 worth of tax relief claims submitted in just three months. It’s testament to our online solution which has shown investors that submitting claims can be straightforward and even lucrative.
“By combining Crowdcube’s reach and understanding of investors with TaxScouts’ expertise in simplifying tax, we’re breaking down barriers and ensuring everyone can benefit from the potential of EIS. This is just the beginning of what we can achieve together.”