TaxScouts partnership sees 1,200 investors claim tax relief

The partnership between TaxScouts and Crowdcube has revealed that over 1,200 Crowdcube users have submitted claims for over £500k in tax relief since the roll-out of a joint platform last October.  

The partnership was established because claiming Enterprise Investment Scheme (EIS) tax relief presents a “significant” hurdle for many investors. While the scheme offers 30% income tax relief, the application process has been described by the firms as “complex and riddled with jargon and paperwork”, which 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. 

According to Crowdcube’s research, 68% of its investors with a portfolio of £5k 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 and TaxScouts has eliminated the obstacles in claiming tax relief by navigating the intricacies of HMRC on the investors’ behalf and putting “the power of tax reclamation directly in their hands”.

The partnership is said to represent a significant shift towards investor empowerment and financial literacy. 

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: £500k 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.”