Latest news with #SEIS
The Herald Scotland
2 days ago
- Business
- The Herald Scotland
More economic trouble is coming. And there's only one escape route
Unfortunately, although politicians say they like economic growth they generally have no idea how to nurture it and often act in ways which seem designed to slow the economy down. The UK Government's latest Employment Rights Bill is a perfect example. There are many things which encourage faster growth: a stable and not stifling regulatory regime, opportunity, social attitudes to wealth creation. In general the direction of travel for these factors is unhelpful but there is another obvious key factor - arguably more powerful than all the rest - which is curiously overlooked. That is the availability of money. For an entrepreneur to turn a great idea into a fledging business takes money and to grow that business into a company which creates jobs and wealth takes more money still. If we look back to the last period of really strong growth in the UK economy, the mid-1980s to about 2007, a lot of favourable factors were at play but the one which mattered most was that money was available in a way which it isn't today. During that time of strong growth Scotland was extraordinarily lucky to have the Bank of Scotland as its key economic facilitator. RBS may have been bigger but it never fostered growth in the same way as the Bank of Scotland did. A business person needing money for growth could go to see their local bank manager, who actually existed and whose job was to grow the bank's business from their branch. If the amount needed was bigger, you went up to the Head Office on the Mound to see somebody, probably called Gavin, Peter or Colin, who took time to understand your business and provided funding to support its growth. There would have been no Stagecoach or Sports Division able to grow rapidly whilst the founders retained control without Bank of Scotland providing finance based not on lending against assets but against the expected cashflows of the business. No public subsidy was involved, no stupid questionnaires to make sure woke targets were being met, just sensible people making commercial decisions which enabled hundreds of companies to get off the ground and grow. Read more It's time to cast aside prejudice and go for the cash Can anyone truly say the Scottish Parliament been a great success? I can't Who will tell the truth? Economically, we are in a mess The financial crisis of 2008 put paid to all that funding for growth and it has never been replaced. What sank RBS and HBOS was not supporting entrepreneurs but the same good old mistake behind almost all banking crises: too much lending against overvalued property. The price of the state bailout though was the dismantling of a support system which had served us well. The UK and Scottish Governments have tried to put in place schemes which provide sources of investment. The SEIS and EIS schemes where investors receive tax relief when investing in young companies is effective, the various government-backed banks including the Scottish National Investment Bank, rather less so. These new schemes provide equity finance whereas most entrepreneurs want debt; they don't want to give up too much control of their companies. Where debt finance is available for companies it now nearly always requires a personal guarantee from the directors of the borrower which acts as a deterrent and negates the whole point of having a limited liability company. What is needed to increase significantly the supply of money to fund growth is to switch the banking system back on as a major provider of risk funding. This won't happen on its own, the UK Government has to give it a shove. The former Bank of Scotland HQ on The Mound (Image: Newsquest) Each of our banks should be given targets for entrepreneurial lending and their progress monitored and reported on regularly. Entrepreneurial lending needs to be defined but its definition should be broad: lending to a company of up to £10million, the company must be a trading company and not own property or land. No personal guarantees allowed. Keep it simple. What the bank should get in return for this lending is that the interest and fees they earn are not subject to corporation tax. One or more banks will see the opportunity to get tax-free revenue by extending loans which are risker in order to help businesses grow. The regulator's instinct to do everything possible to stop such lending must be curbed. Mistakes must be allowed to be made. Not a spectacular initiative for a politician to announce, no ribbons for them to cut but if something like this was introduced it really would help growth.
Hans India
09-07-2025
- Business
- Hans India
Top Small Business Grants in the UK: A Busin Assist Guide to Kickstarting Your Venture
Explore the top small business grants available in the UK for startups and entrepreneurs. Busin Assist's expert guide helps you find funding opportunities to launch and grow your business in is a major challenge for startups. Raising startup funding from investors, grants, and loans after UK company formation is a crucial step toward business growth. While businesses must repay loans and investments, grants, on the other hand, do not need to be repaid. Grants are tailored to provide small businesses with financial support to streamline their starting process and enhance performance. A grant can be awarded by the government, a foundation, or another company. Grants are, however, not free money since they have terms that must be met before your business is awarded. While government grants are available, getting a grant for small business can be challenging. This guide will give you an overview of grants that could work for your business, not forgetting tips on how startups can navigate the complex process of getting small business grants. An overview of small business grants A small business grant is a financial award given to entrepreneurs to kick-start their business. These grants are awarded to startups helping entrepreneurs launch their businesses seamlessly. In the UK, the grants can come from the government and private organisations to support UK businesses and to help the economy flourish. There are different types of grants that small businesses can benefit from. Some grants can come in the form of tax relief or training on how you can maximise your profit margins. These grants include: Direct grants These grants are provided in cash to assist businesses in pursuing specific initiatives. The amounts can vary significantly, from several hundred pounds to a maximum of £50,000. If the funds are utilised as per the stipulated spending and timeline criteria, repayment is not required. Instead, investors generally acquire an equity interest in the business. Resource and training grants Government entities, local authorities, and private organisations provide targeted resource and training grants, frequently designed for specific demographics or needs. Examples include business startup grants for individuals over 30 in the UK and grants for veterans to facilitate their transition into civilian life. It is important to seek out UK business grants that may be beneficial, utilising both online resources and personal networks. Tax relief Tax reliefs can enhance your profit margins. For instance, the Enterprise Investment Scheme (EIS) and the Seed Enterprise Investment Scheme (SEIS) assist companies in securing funding by providing tax incentives to their investors. Regional grants These are financial assistance programs that are aimed at businesses located in particular regions or sectors experiencing economic difficulties or potential growth. Prince's Trust grants Development awards of up to £500 are available for UK residents aged 16 to 30 who seek financial assistance for training purposes. Forestry Grant Scheme Financial assistance is available for companies that establish new woodland areas or engage in the sustainable management of current woodlands. Additionally, various government grants are accessible to startups in the UK, including Innovation grants, the National Lottery Heritage Fund, Local Enterprise Partnerships (LEPs), and the New Enterprise Allowance. Tips for small businesses to get grants Research There are many grants available. You can research UK government grants on a searchable database, while for other grants, you can look into funding directories. Check your eligibility Every grant has its own terms and guidelines. Entrepreneurs have to read and understand the terms of the grant to see if it aligns with their business objectives. Fashion startups cannot apply for grants that focus on tech businesses. Check your funding Some grants will want to match the amount you're willing to invest, so if you're seeking a grant of £10,000 then make sure you have a matching amount available. Have a great business plan The awarding organization for the grant will require a comprehensive business plan, similar to other funding types, and if your business is already operational, you should provide evidence of your current business status. Apply early You have a better chance of receiving a grant if you apply when a scheme first launches. Make sure you include all the required information and address all the questions. Explain clearly why you need the grant and how you will use it. Focus on the grant use Grants are typically allocated for particular initiatives, such as the acquisition of IT equipment or the financing of broadband installation. It is essential to utilize the application to demonstrate how these resources will contribute to the expansion of your business and provide advantages to others, rather than focusing solely on the IT equipment in question. Grant reporting If you are awarded a grant, you will need to prepare reports and documentation to show how the grant funds were spent. Competition Many innovation competitions can help small businesses get funding. In conclusion, getting a small business grant can be a complex process, but this guide can streamline it. After forming a UK company, you can easily apply for a grant to finance your startup and launch smoothly. To enhance your chances of success in the application process, it is essential to prepare a well-detailed and current business plan, have a defined budget plan, financial statements, and a detailed explanation of how your business meets the criteria for the small business grant. Government grants, including those offered by the Welsh and Northern Ireland Assemblies and the Scottish Parliament, are accessible to businesses in the UK. For entrepreneurs looking to form a UK company, it is advisable to start with the Business Finance Support Finder, which offers valuable resources. The Welsh government has a list of grants available through its Business Grants website and also Enterprise Ireland provides funding opportunities for a range of businesses, from small companies to larger organisations. There are also other alternatives to small business grants such as loans, crowdfunding, angel investors, investors, equity finance, and funds from family and friends. Form your UK company seamlessly with BusinAssist and kickstart your business effectively. They help businesses who want to tap into the UK market. Overseas businesses can incorporate their business using a London virtual office and operate remotely. If you have any queries about UK company formation, you can contact BusinAssist at [email protected].
Business Wire
06-05-2025
- Business
- Business Wire
NextDecade Provides First Quarter 2025 Business Update
HOUSTON--(BUSINESS WIRE)--NextDecade Corporation (NextDecade or the Company) (NASDAQ: NEXT) today provided an update on developmental and strategic activities for the first quarter 2025 and early second quarter 2025. 'NextDecade has had an incredibly strong start to 2025, as we announced expansion plans at the Rio Grande LNG Facility, including Trains 6 through 8, received a positive outcome in the D.C. Circuit Court case, completed the commercialization of Train 4, and continued to progress the construction of Phase 1 safely, on schedule, and on budget,' said Matt Schatzman, NextDecade's Chairman and Chief Executive Officer. 'We continue to see excellent demand for U.S. LNG, which will help us commercialize Train 5 and advance both Trains 4 and 5 toward positive final investment decisions (FIDs).' 'In February, we announced expansion capacity at the Rio Grande LNG Facility beyond Trains 1 through 5, including Trains 6 through 8, bringing our total expected LNG production capacity under construction or in development to 48 MTPA. We expect to pre-file with the Federal Energy Regulatory Commission (FERC) for Train 6 this year and will provide a permitting timeline for Trains 7 and 8 later this year.' 'In March, we received a positive outcome in the D.C. Circuit Court case impacting our FERC order when the Court issued a revision to its August 2024 judgment, resulting in a remand without vacatur of the FERC order and therefore ensuring that construction on Phase 1 can continue uninterrupted while FERC completes a supplemental environmental impact statement (SEIS). FERC issued a draft SEIS in March and its analysis was consistent with our expectations and previous analysis of our project. We will continue to work with FERC as it completes the SEIS and reauthorization process this year.' 'In April, we announced 20-year LNG sale and purchase agreements (SPAs) with Aramco and Total, which join ADNOC as the long-term customers supporting Train 4, resulting in sufficient commercial commitments to underpin a positive FID. We are working with Bechtel on a refresh of our Train 4 EPC contract and we expect to launch the financing process for Train 4 imminently. Train 5 commercialization is progressing and we are working with Bechtel on a Train 5 EPC contract, with a plan to launch the financing process for Train 5 once those are completed.' 'We thank our stakeholders and the local community for their continued support of the Rio Grande LNG Facility and NextDecade, and we are now laser-focused on progressing Phase 1 safely toward completion and capitalizing on growth opportunities for expansion capacity.' Significant Recent Developments Construction Under the EPC contracts with Bechtel Energy Inc. (Bechtel), Phase 1 progress is tracked for Train 1, Train 2, and the common facilities on a combined basis and Train 3 on a separate basis. As of March 2025: The overall project completion percentage for Trains 1 and 2 and the common facilities of the Rio Grande LNG Facility was 42.8%, which is in line with the schedule under the EPC contract. Within this project completion percentage, engineering was 87.9% complete, procurement was 76.3% complete, and construction was 14.1% complete. The overall project completion percentage for Train 3 of the Rio Grande LNG Facility was 17.8%, which is also in line with the schedule under the EPC contract. Within this project completion percentage, engineering was 41.9% complete, procurement was 37.2% complete, and construction was 0.8% complete. In February 2025, the Company provided additional information regarding its development of additional liquefaction capacity at the Rio Grande LNG Facility beyond Trains 1 through 5. Trains 6 through 8 are wholly owned by NextDecade and are cumulatively expected to increase the Company's total liquefaction capacity by approximately 18 million tonnes per annum (MTPA) once constructed and placed into operation. Train 6, with expected LNG production capacity of approximately 6 MTPA, is being developed inside the existing levee at the site and adjacent to Trains 1 through 5. A pre-filing application with FERC for Train 6 is expected in 2025, and a full FERC application is expected in early 2026. Trains 7 and 8, with a total expected LNG production capacity of approximately 12 MTPA, are being developed on the site outside of the existing levee. Strategic and Commercial In January 2025, the Company requested a pricing refresh under the August 2024 EPC contract with Bechtel for Train 4 and related infrastructure. The pricing refresh is in process and is expected to be completed in the second quarter of 2025. In April 2025, the Company announced a 20-year LNG SPA with a subsidiary of Saudi Aramco (Aramco), pursuant to which the Aramco subsidiary will purchase 1.2 MTPA of LNG From Train 4 at the Rio Grande LNG Facility for 20 years, on a free on board (FOB) basis at a price indexed to Henry Hub, subject to a positive FID on Train 4. In April 2025, the Company announced that TotalEnergies exercised its LNG purchase option with respect to Train 4 and the Company entered into a 20-year LNG SPA with TotalEnergies, pursuant to which TotalEnergies will purchase 1.5 MTPA of LNG from Train 4 at the Rio Grande LNG Facility for 20 years, on an FOB basis at a price indexed to Henry Hub, subject to a positive FID on Train 4. The Company believes sufficient long-term commercial agreements are now in place to support a positive FID on Train 4. Financial In April 2025, Rio Grande LNG, LLC elected to terminate $250 million of commitments under its working capital facility due to a decrease in expected requirements for credit support during construction, which reduced the outstanding commitments under the working capital facility to $250 million and is expected to reduce related commitment fees by approximately $2 million annually. Regulatory In March 2025, the U.S. Court of Appeals for the D.C. Circuit issued a revision to its August 2024 decision regarding the Company's FERC order, resulting in a remand without vacatur of the FERC order for the first five liquefaction trains at the Rio Grande LNG Facility. Pursuant to the remand, FERC is to consider the issue of an SEIS in view of several executive orders issued since January 20, 2025. In March 2025, the FERC issued a draft SEIS for the first five liquefaction trains at the Rio Grande LNG Facility. A final SEIS is expected in July 2025. Rio Grande LNG Facility NextDecade is constructing and developing the Rio Grande LNG Facility on the north shore of the Brownsville Ship Channel in south Texas. The site is located on 984 acres of land which has been leased long-term and includes 15,000 feet of frontage on the Brownsville Ship Channel. The Company believes the site is advantaged due to its proximity to abundant natural gas resources in the Permian Basin and Eagle Ford Shale, access to an uncongested waterway for vessel loading, and location in a region that has historically been subject to fewer and less severe weather events relative to other locations along the U.S. Gulf Coast. The Rio Grande LNG Facility has been permitted by the FERC and authorized by the DOE to export of up to 27 MTPA of LNG. Phase 1 at the Rio Grande LNG Facility is under construction, Train 4 has been commercialized and is being progressed toward FID, Train 5 is being commercialized, and the Company is developing and beginning the permitting process for Trains 6 through 8. Phase 1 (Trains 1-3) Phase 1 at the Rio Grande LNG Facility is under construction. Phase 1 includes three liquefaction trains with a total expected LNG production capacity of approximately 18 MTPA, two 180,000 cubic meter full containment LNG storage tanks, and two jetty berthing structures designed to load LNG carriers up to 216,000 cubic meters in capacity. Phase 1 also includes associated site infrastructure and common facilities including feed gas pretreatment facilities, electric and water utilities, two totally enclosed ground flares for the LNG tanks and marine facilities, two ground flares for the liquefaction trains, roads, levees surrounding the development area, and warehouses, administrative, operations control room, and maintenance buildings. As of March 2025, progress on Trains 1 through 3 is in line with the schedule under the EPC contracts. During the first quarter 2025, the construction team continued steel assembly and progressed above-ground piping and setting of equipment in the Train 1 area. Within Train 2, foundation pours and steel assembly continued to progress. Concrete pours for Tanks 1 and 2 continued. First steel was placed for Train 3 in April 2025. Siteworks were finished for the material offload facility area to support equipment deliveries. Across the site, Bechtel also continued installing undergrounds, structures, loading berths, piling, concrete foundations, and other siteworks. NextDecade holds equity interests in the Phase 1 joint venture that entitle it to receive up to 20.8% of the distributions of available cash during operations. Final Investment Decision on Train 4 and Train 5 We expect to make a positive FID and commence construction on Trains 4 and 5 and related infrastructure at the Rio Grande LNG Facility, subject to, among other things, entering into EPC contracts, entering into appropriate commercial arrangements, and obtaining adequate financing to construct each train and related infrastructure. The Company has finalized 20-year LNG SPAs totaling 4.6 MTPA of LNG with ADNOC, Aramco, and TotalEnergies in support of Train 4, and the Company believes sufficient commercial support is now in place to support a positive FID on Train 4. The Company has finalized an EPC contract with Bechtel for Train 4 and related infrastructure. In January 2025, the Company requested a pricing refresh under the Train 4 EPC contract, which is in process and is expected to be completed in the second quarter of 2025. The Company expects to finance construction of Train 4 utilizing a combination of debt and equity funding. The Company expects to enter into bank facilities for the debt portion of the funding. In connection with consummating the Rio Grande Phase 1 equity joint venture, the Company's equity partners each have options to invest in Train 4 equity, which, if exercised, would provide approximately 60% of the equity funding required for Train 4. Inclusive of these options, NextDecade currently expects to fund 40% of the equity commitments for Train 4, and to have an initial economic interest of 40% in Train 4, increasing to 60% after its equity partners achieve certain returns on their investments in Train 4. The Company expects to launch the financing process for Train 4 in the second quarter of 2025 and expects to make a positive FID on Train 4 after financing arrangements are finalized. The Company is also progressing the development and commercialization of Train 5. TotalEnergies holds an LNG purchase option for 1.5 MTPA for Train 5, and the Rio Grande Phase 1 equity partners have options to invest in Train 5 equity which are identical to their options to participate in Train 4 equity. Development of Additional Liquefaction Capacity The Company is developing and beginning the permitting process for additional liquefaction capacity at the Rio Grande LNG Facility site beyond Trains 1 through 5. Trains 6 through 8 are wholly owned by NextDecade and are cumulatively expected to increase the Company's total liquefaction capacity by approximately 18 MTPA once constructed and placed into operation. Train 6 is being developed inside the existing levee at the Rio Grande LNG Facility site and adjacent to Trains 1 through 5. The Company expects to pre-file an application with FERC for Train 6 in 2025 and a full application with FERC in early 2026. Trains 7 and 8 are being developed on the site outside of the existing levee. Investor Presentation NextDecade has posted an updated investor presentation to its website concurrently with this release. A copy of this release and the investor presentation can be found on its website at About NextDecade Corporation NextDecade is committed to providing the world access to reliable, lower carbon energy. We are focused on delivering secure, low-cost, and sustainable energy solutions through the safe and efficient development and operation of natural gas liquefaction and carbon capture and storage infrastructure. Through our subsidiaries, we are developing and constructing the Rio Grande LNG natural gas liquefaction and export facility near Brownsville, Texas, with approximately 48 MTPA of potential liquefaction capacity currently under construction or in development. We are also developing a potential carbon capture and storage project at the facility that is expected to make meaningful impacts toward a lower carbon future. NextDecade's common stock is listed on the Nasdaq Stock Market under the symbol 'NEXT.' NextDecade is headquartered in Houston, Texas. For more information, please visit Forward-Looking Statements This press release contains forward-looking statements within the meaning of U.S. federal securities laws. The words 'anticipate,' 'contemplate,' 'estimate,' 'expect,' 'project,' 'plan,' 'intend,' 'believe,' 'may,' 'might,' 'will,' 'would,' 'could,' 'should,' 'can have,' 'likely,' 'continue,' 'design,' 'assume,' 'budget,' 'guidance,' 'forecast,' and "target," and other words and terms of similar expressions are intended to identify forward-looking statements, and these statements may relate to the business of NextDecade and its subsidiaries. These statements have been based on assumptions and analysis made by NextDecade in light of current expectations, perceptions of historical trends, current conditions and projections about future events and trends and involve a number of known and unknown risks, which may cause actual results to differ materially from expectations expressed or implied in the forward-looking statements. Although NextDecade believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that the expectations will prove to be correct. NextDecade's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in NextDecade's periodic reports that are filed with and available from the Securities and Exchange Commission. The taking of a final investment decision on Trains 4 and 5 at the Rio Grande LNG Facility is subject to, among other things, maintaining requisite governmental approvals, finalizing and entering into EPC contracts, entering into appropriate commercial arrangements, and obtaining adequate financing to construct each train and related infrastructure. Additionally, any development of additional expansion trains at the Rio Grande LNG Facility or CCS projects remains contingent upon receipt of requisite governmental approvals, execution of definitive commercial and financing agreements, securing all financing commitments and potential tax incentives, achieving other customary conditions and making a final investment decision to proceed. The forward-looking statements in this press release speak as of the date of this release. NextDecade may from time to time voluntarily update its prior forward-looking statements, however, it disclaims any commitment to do so except as required by securities laws.
Business Mayor
23-04-2025
- Business
- Business Mayor
How to Help UK Start-ups Flourish
You're reading Entrepreneur United Kingdom, an international franchise of Entrepreneur Media. Kecsmar, who has experienced firsthand the struggles and triumphs of building a tech startup in the UK, offers a sharp critique of the current support available for early-stage ventures. Despite initiatives such as the Seed Enterprise Investment Scheme (SEIS), Enterprise Investment Scheme (EIS), and R&D tax credits, UK startups face growing barriers to success. Funding: A persistent hurdle} For Kecsmar, one of the most pressing issues facing startups is access to funding. 'Funding remains a major challenge, with early-stage investment becoming harder to secure,' he says. The numbers support his claim: in 2024, just €16.5bn was invested in UK startups, the lowest since 2018, and much of that went to later-stage companies. The implication is clear: the funding ecosystem in the UK is increasingly skewed toward scaleups, leaving early-stage startups struggling for attention and resources. 'This suggests we're going backwards in the UK in this regard,' Kecsmar notes. This funding gap must be addressed to allow more startups to reach maturity. The government could play a crucial role here. Kecsmar proposes partnerships with major tech firms to offer discounted cloud services and AI tools to startups – critical resources for companies in their infancy. Beyond this, tax credits for office space and transport could lower operational costs, easing the financial burden on early-stage businesses. The benefits of government programs Despite the challenges, Kecsmar remains a strong advocate for the government's existing support mechanisms, particularly the R&D tax credit program. 'Government programs like R&D tax credits have been invaluable for Antavo,' Kecsmar explains. These credits have allowed Antavo to fund its innovation team, Antavo Labs, which is central to the company's development of cutting-edge loyalty technology. The R&D tax credit has allowed Kecsmar's team to experiment with new ideas without the constant pressure of financial constraints. 'By reducing the financial burden of innovation, these credits have allowed us to stay ahead of the curve,' Kecsmar says. 'They've been key to accelerating our product development and growth.' However, Kecsmar is quick to point out that these programs need to be more widely available and targeted at the very startups that need them the most. If the UK is to remain competitive, investment in R&D, particularly in emerging technologies, should be increased. What can be done to help start-ups grow? Despite the successes of existing programs, Kecsmar is not convinced that the current climate is conducive to fast startup growth. The funding shortfall is just one part of the equation. 'We need a more founder-friendly ecosystem,' he insists. The current system, he argues, makes it difficult for startups to access the funding, talent, and support they need to thrive. The UK must also be more open in terms of talent acquisition. Since Brexit, the movement of skilled workers has been hampered, creating a talent deficit in many sectors. For Kecsmar, solving this issue is critical. 'Making it easier for skilled workers to move to the UK would be a game-changer,' he says. Allowing greater flexibility in hiring and immigration would provide startups with access to a global pool of talent, something that is especially crucial in the fast-moving tech sector. A call for regulatory reform Beyond funding and talent, Kecsmar highlights the need for regulatory reform. He argues that blanket regulations, particularly in fast-developing fields such as AI, could stifle innovation. 'We need reduced AI regulations for startups only, up to a certain size,' he explains. Kecsmar emphasizes that these regulations should still include ethical guidelines and oversight, but the imposition of heavy rules could prevent small firms from competing effectively with their global counterparts. The UK government, according to Kecsmar, should consider introducing a 'start-up exemption' – a form of regulatory flexibility that would allow smaller businesses to operate under more lenient rules, at least during their early years. Such a move could help level the playing field with startups in the US and China, where tech regulations are often less restrictive. Investing in infrastructure Beyond policy reforms, Kecsmar stresses that the UK must continue investing in technological infrastructure if it is to remain a global leader in innovation. Cuts to tech and AI funding in 2024 – totalling £1.3bn – have raised concerns that the UK risks losing its position as a top destination for startups. 'There's a very real chance that the UK has already lost some top talent to the US,' Kecsmar warns. If the UK is to remain competitive, the government must reverse these cuts and prioritize investment in emerging technologies. Kecsmar also proposes tax incentives to encourage the hiring of apprentices and interns by startups. By reducing National Insurance costs for companies that take on young workers, the government could help alleviate some of the financial pressures faced by small businesses while also addressing the skills gap. Competing on the global stage Startups in the UK are not only competing with each other – they are up against ecosystems in the US, China, and beyond. The government must understand that UK startups are not operating in isolation. As Kecsmar succinctly puts it: 'We need to look at the global stage. Who are startups in the UK competing against, and what are their ecosystems like?' The UK's future as a global hub for innovation depends on how effectively it can compete with these other ecosystems. To do so, the government must make bold moves to improve access to funding, reduce regulatory burdens, and foster a more open and competitive talent pool. The UK has a long history of nurturing entrepreneurial talent, but the landscape is changing. If the government is serious about fostering a thriving startup ecosystem, it must invest more in technological infrastructure, reduce regulatory barriers, and create an environment where talent can flourish. The path forward is clear: better funding, smarter regulation, and a more flexible approach to hiring and innovation will ensure that UK startups remain competitive on the global stage. As Kecsmar concludes, 'A more founder-friendly ecosystem with improved funding access, scalable support, and a more open approach to hiring would help unlock the UK's full entrepreneurial potential.' Only with these changes can the UK remain a leader in the global innovation race.
Telegraph
08-04-2025
- Business
- Telegraph
‘Why should I endure HMRC's pitiful interest and a six-month wait for my tax refund?'
Email your tax questions to Mike at taxhacks@ Dear Mike, The Spring Statement included measures to crack down on tax evasion and fraud, thought to net the Treasury £1bn over next four years. However, there is another side to the story, because HM Revenue & Customs (HMRC) is sitting on overpaid tax. I invest in the SEIS (Seed Enterprise Investment Scheme) and get tax relief, but it is always a job getting HMRC to pay the reliefs due. I have a long list of the unsuccessful attempts made to recover the tax, both in writing and by phone. If someone answers they might be working from home and cannot deal with self-assessment, or need to speak to a technical officer, often unavailable. Promised callbacks do not materialise. At the moment I am owed thousands. I rang yesterday to be told that they aim to process my letter of mid-January by July 20, a delay of six months. I asked to speak to a technical officer, but the response was that the matter required a higher rank to deal with it. This is after being asked to resubmit paper copies of a dozen EIS certificates, despite the spreadsheet entry in my tax return of last autumn. I believe that I am not alone in this. It is possible that HMRC is sitting on funds of around £1bn on which it pays a rate of interest which is pitiful? David Dear David, You are due these tax repayments because you invest in young growing companies through EIS and SEIS. These tax incentives have been made available by successive governments precisely because, although sometimes risky, they are usually in the high growth businesses of the future on which our economic growth depends. Rachel Reeves understandably wants growth to help fund public services, but the administrative delays by HMRC that you mention inevitably serve to blunt the incentive to invest. Although your repayment arises from qualifying EIS investments, it is a wider issue as highlighted in a recent article by Madeleine Ross, which noted that HMRC has stopped processing tax repayments requested by telephone. The problem, as you have discovered, is that claims by post are not being dealt with efficiently either. The issue you rightly raise is that the scales are weighted heavily in favour of HMRC and against taxpayers. In the Spring Statement, the Chancellor announced that as of April 6 2025, interest on unpaid tax will be charged at 8.5pc. The Government says that this is part of the package to bring down the balance of unpaid tax and is fair to other taxpayers who pay on time. This compares with the interest rate paid to taxpayers on repayments due of 3.5pc. I entirely agree with you that it seems unfair to make taxpayers such as yourself wait for six months or more to recover your money while only receiving this return on their money. On top of this, HMRC will be restarting the direct collection of tax from customers' bank accounts. This process was originally introduced by the previous government in November 2015 but discarded five years later. I have many concerns about this process, not least the absolute necessity of ensuring that the tax is due. As the Treasury Select Committee said at the time: 'This policy is highly dependent on HMRC's ability to determine accurately which taxpayers owe money and what amounts they owe, an ability not always demonstrated in the past.' I wrote recently about a case where an entirely innocent lady, Gabrielle O'Donovan, was brought to the brink of bankruptcy when HMRC incompetence meant she was confused with an entirely different person. As you imply, you are not alone in experiencing this problem. Other readers tell us that they have also suffered long delays at the hands of HMRC. One said: 'I submitted my tax return in September and the HMRC website by early October showed that [it] owed me my tax refund, but they didn't pay it to me. I wrote but they didn't answer. I wrote again, which went unanswered. In March I phoned, and having waited 45 minutes I eventually got through and the payment was authorised, but with no explanation for the hold up.' Another reader said: 'I submitted my return in mid-July showing a reclaim. I chased the repayment and, after an hour on the phone, eventually got through to someone who said the repayment needed a 'security review', but couldn't say what tasks were involved. I infer that 'security review' is probably just a new excuse they have invented to justify delays and likely doesn't relate to security at all. The repayment arrived in mid-October.' HMRC says that such reviews are to protect against fraud. It is clearly right for HMRC to guard against fraudulent claims, but I am not sure why this should take so long to process. Claims for tax relief are made on EIS 3 certificates only issued by the company, but only after following the HMRC clearance procedure. In addition, by far the majority of EIS investments are made through wealth managers who will have carried out their own review. The issue of slow tax repayments is much wider than just those seeking repayments on EIS investments. Esther Shaw recently wrote a summary of the most common reasons for tax overpayments, together with some useful tips for speeding up the process. The Association of Taxation Technicians (ATT) has been working with HMRC in an attempt to improve the position. It suggests avoiding human intervention where possible by filing returns online. According to HMRC, tax repayments should then be processed within 10 days. Claims made using R40 paper forms inevitably take longer. The ATT also advises against submitting voluntary returns, and suggests requesting a notice to file from HMRC. It is also important to complete the bank details on page TR6 of the return to avoid banking delays. The Low Incomes Tax Reform Group (LITRG) carries out an important support function for unrepresented taxpayers. Its guidance notes that a four-year deadline exists for claiming back overpaid tax. However, if you miss the deadline, you may still be able to obtain a repayment through Extra Statutory Concession B41 if there has been an error by a government department, as explained in the HMRC manuals at SACM10040. Mike Warburton was previously a tax director with accountants Grant Thornton and is now retired. His columns should not be taken as advice, or as a personal recommendation, but as a starting point for readers to undertake their own further research.
