FAQ
EIS Investment - 10 Essential Q&A
1. WHAT IS EIS, AND WHAT DOES ADVANCE ASSURANCE MEAN?
EIS is a UK government program helping smaller companies raise finance by offering tax reliefs to investors. Peymo received HMRC Advance Assurance (Reference: WMBC/I&R/1601324191/VCRT) for £850,000 in November 2025, indicating HMRC expects to authorize compliance certificates. However, this is NOT a guarantee—relief depends on Peymo maintaining compliance for three years and investors meeting qualifying conditions. Advance assurance can be withdrawn if circumstances change, so don't base decisions solely on expected tax benefits.
2. WHAT TAX RELIEFS ARE POTENTIALLY AVAILABLE?
EIS offers five main reliefs: (1) 30% Income Tax Relief, claimable immediately or carried back; (2) Capital Gains Tax Exemption after 3+ years; (3) Loss Relief offsetting losses against income tax or CGT; (4) CGT Deferral Relief; and (5) 100% Inheritance Tax Relief after 2 years. Example: £100,000 investment exiting at £300,000 yields 4.3x return versus 2.6x without EIS. However, tax treatment depends on individual circumstances, and reliefs don't eliminate investment risk—you can still lose 70% net even with 30% relief.
3. AM I ELIGIBLE FOR EIS TAX RELIEF?
You must meet ALL conditions: be a UK taxpayer with sufficient tax liability; NOT be connected to Peymo (employee, partner, or 30%+ shareholder, including associates); make an arm's length investment; hold shares 3+ years; and receive your EIS3 certificate. Only individuals qualify—not companies, trusts, or pensions. You must also self-certify as a high-net-worth, certified sophisticated, or self-certified sophisticated investor. If you become connected after investing, notify HMRC—you'll lose relief. Consult a qualified tax adviser if unsure.
4. WHAT ARE THE SPECIFIC RISKS OF EIS INVESTMENT IN PEYMO?
Severe risks include: (1) Total capital loss—Peymo is pre-revenue and most startups fail; (2) Illiquidity—no market exists, expect 5-10+ year hold; (3) Unproven business model; (4) Significant dilution from future fundraising; (5) No exit guarantee. EIS-specific risks: relief not guaranteed despite advance assurance; 3-year lock-in (early sale loses all relief); compliance failures outside your control; and changing personal circumstances. Even with 30% relief, reducing the cost to £70,000, you could lose everything. Only invest if you can afford total loss, don't need liquidity for 10+ years, this represents <10% of net worth, and you'd invest WITHOUT EIS benefits.
5. HOW LONG DOES THE EIS PROCESS TAKE?
Investment to tax relief takes 6-18 months: Phase 1 (Weeks 0-4)—invest and receive share certificate; Phase 2 (Months 0-4)—Peymo conducts qualifying activity; Phase 3 (Months 4-10)—Peymo submits compliance statement, HMRC reviews (2-4 months); Phase 4 (Months 8-12)—HMRC authorizes, Peymo issues EIS3 certificates; Phase 5 (Following tax year)—claim on Self Assessment, HMRC processes in 4-12 weeks. Keep all documentation for 9+ years, as HMRC can investigate claims years later.
6. WHAT IS PEYMO'S QUALIFYING BUSINESS ACTIVITY?
Peymo develops and licenses AI-powered fintech infrastructure software on a SaaS basis—proprietary technology, AI/ML systems, and modular infrastructure licensed to businesses on subscription. Critically, we never hold client funds, provide regulated services directly, or conduct excluded activities. We're purely a B2B technology provider; clients maintain regulatory responsibilities. The £850,000 will be used for: 50% technology development, 30% marketing, 20% operations—all deployed within 2 years. We commit to maintaining compliance, though commercial needs may occasionally conflict with EIS optimization.
7. WHO SHOULD NOT INVEST IN PEYMO?
Don't invest if you: cannot afford total loss; need capital within 5-10 years; this exceeds 10% of net worth; lack emergency funds; rely on tax relief to afford it; need investment income; don't understand startups/EIS/fintech; haven't obtained independent advice; aren't certified high-net-worth/sophisticated; don't meet EIS conditions; seek guaranteed returns; or are investing primarily for tax benefits. Critical question: "Would I invest WITHOUT EIS benefits?"—if no, DON'T INVEST. These investments suit only a small subset of sophisticated investors with specific financial circumstances and high risk tolerance.
8. HOW DO I CLAIM EIS TAX RELIEF?
After receiving your EIS3 certificate (6-12 months post-investment), complete form SA101 on your Self Assessment return. Claim for either the investment year or carry back to the previous year. Relief (investment × 30%) reduces tax liability directly—£50,000 investment with £53,160 tax due yields £15,000 relief, reducing tax to £38,160. Unused relief is lost (no refund/carry forward). CGT exemption is automatic on 3+ year holdings; Loss Relief requires calculating allowable loss after subtracting income tax relief received. Keep documentation 9+ years. Peymo provides certificates but cannot give personal tax advice—consult your accountant.
9. WHAT HAPPENS IF PEYMO DOESN'T QUALIFY FOR EIS AFTER ALL?
Despite advance assurance, qualification may fail if HMRC refuses authorization, Peymo breaches conditions (size limits, excluded activities, improper fund deployment), or administrative failures occur. You won't receive EIS3 certificates and cannot claim any reliefs—your £100,000 cost stays £100,000, not £70,000, with no CGT exemption or favorable loss relief. However, your investment remains valid with all shareholder rights. You cannot demand refunds or claim misrepresentation given explicit disclaimers. To protect yourself: assess investment without EIS; size appropriately; diversify; and monitor compliance through quarterly updates.
10. WHERE CAN I GET HELP AND MORE INFORMATION?
Contact Peymo at investors@peymo.com (general enquiries), eis@peymo.com (factual EIS questions only), support@peymo.com (technical issues), or legal@peymo.com (document queries). However, Peymo CANNOT provide personal advice. You MUST obtain independent professional advice from: FCA-authorized financial advisers (£1,000-3,000+), qualified tax advisers/accountants (£300-3,000), and solicitors for large investments (£1,000-10,000+). Official resources: HMRC EIS guidance (gov.uk), HMRC helpline (0300 123 1083), FCA consumer information, and EIS Association. Complete the comprehensive due diligence checklist before investing—if you cannot check EVERY box, you're not ready to invest.
General Q&A
11. What is Peymo?
Peymo is an AI-powered fintech platform that provides infrastructure modules for onboarding, transaction monitoring, compliance, and security. Licensed financial institutions and corporate partners use Peymo to streamline operations, reduce costs, and enhance user experience.
12. How can I access Peymo?
Peymo works as a SaaS solution, delivered via secure APIs and dashboards. Our modules integrate directly into the systems of licensed providers.
13. Is Peymo available in my country?
Peymo partners with institutions in multiple regions. Availability depends on local partner integrations. Please contact us to learn more.
Platform & Account Management
14. Do individuals open accounts directly with Peymo?
No. Peymo does not open or manage customer accounts. Instead, we provide the technology layer that licensed partners use to onboard and serve their clients.
15. How do businesses integrate Peymo?
Partners can integrate Peymo’s modules through APIs or use our dashboards. The setup includes configuration, access management, and training for compliance teams.
16. Can Peymo store or update personal data?
Peymo provides a secure infrastructure for partners to process and manage data. End-users update their information directly with the licensed provider, who remains the data controller.
Features & Services
17. What solutions does Peymo offer?
Our modular platform includes:
- AI-powered onboarding (ID and document verification)
- Transaction monitoring and fraud detection
- Compliance automation and reporting
- Data security & cyber defense tools
18. Does Peymo move money?
No. Peymo does not process or hold funds. We provide monitoring and compliance technology, while licensed financial providers remain responsible for payment execution.
19. How does Peymo improve cash or asset handling?
Through AI-driven monitoring and verification, Peymo ensures partners can validate documentation and transaction flows, reducing operational risk.
AI & Compliance
20. What role does AI play in Peymo?
AI assists in identity checks, anomaly detection, and fraud pattern recognition. This allows partners to onboard users and monitor transactions faster and more accurately.
21. Can Peymo replace regulatory oversight?
No. Peymo supports compliance teams with automation, but licensed partners remain fully responsible for making regulatory decisions and fulfilling their obligations.
22. How does Peymo support corporate onboarding?
Our system streamlines verification of corporate documents (articles of association, certificates of incorporation, shareholder IDs, etc.) within seconds, helping partners activate clients quickly.
Security
23. How is data protected?
Peymo applies end-to-end encryption, automated audit logging, and AI-driven anomaly detection to ensure secure operations.
24. How does Peymo prevent fraud or cyberattacks?
The platform includes an AI Cyber Defense Hub that identifies intrusions, phishing attempts, and unusual network activity, and can autonomously isolate risks before escalation.
25. Does Peymo have access to end-user funds?
No. Peymo is a technology provider only. All financial transactions and safeguarding of funds are handled by licensed partners.
Support
26. How do I contact Peymo?
Businesses and institutions can contact us through our website or via email at support@peymo.com
27. Where can I find more information?
Visit our website or request a product demo to explore how Peymo can integrate into your existing infrastructure.