SSAS is a small employer established pension scheme registered for tax relief by HMRC.
They are usually set up for directors/owners of small to medium size business and their family members.
Members are trustees, so retain control over the pension fund.
A SSAS is very flexible in terms of what you can invest in and what benefits can be paid.
SSAS are similar to a Self Invested Personal Pension (SIPP), but as they have a wider class of available assets and no over-ruling provider, SSAS are more appealing for those who are looking for a bespoke pension arrangement rather than an off the shelf one that might not suit their needs.
How does a SSAS work?
The SSAS is established by a Trust Deed and registered with HMRC.
Each member is appointed as a Trustee to look after the best interests of all members in the scheme.
The Hanover Trustee Company Limited is appointed as an Independent Trustee.
Once the scheme is established and registered with HMRC, members’ pots are funded by tax relievable contributions (usually paid by the employer), and additionally (if members elect to do so) by transfers from other members’ pension arrangements.
Funds are invested with the Member Trustees’ choice of investment provider to achieve capital growth and income.
What are the benefits of an SSAS?
SSAS are particularly well placed to dovetail with employers’ businesses, and subject to legislative requirements can advance loans to the employer on commercial terms, and/or purchase commercial property which can be let back to the employer or unconnected third parties at a commercial rent.
Trustees can also borrow funds in order to assist with asset purchases.
Tax benefits include:
- Reliefs on pension contributions
- Tax-free income
- Nil capital gains tax
- 25% of benefits paid tax-free
- Death benefits (lump sums and/or income benefits) paid tax free on death before age 75, and Inheritance Tax free in almost all circumstances
These tax benefits make saving through a pension fund very tax efficient.
Who do we work with and what do we do?
We act as the Independent Trustee of the scheme to ensure that all members’ interests are looked after.
We assist with setting up the scheme and providing all the relevant documentation in order to make the scheme compliant with HMRC rules and obtain the correct HMRC tax registration.
Once the scheme established, we make sure the trustees are compliant with HMRC rules regarding contributions limits, borrowing limits sponsoring employer loans, property rules etc.
We also help with the annual HMRC reporting and any ad-hoc reporting required.
If the SSAS is eligible for registration with The Pensions Regulator, we also deal with this, along with ongoing reporting to The Pensions Regulator.
If a member decides to draw benefits, we can provide the necessary calculations and paperwork to assist the trustees with this work.
We also update clients on any changes in legislation and application for any protections offered by HMRC, which are vital to SSAS clients intending to build up substantial pension funds.
Why are we different?
We offer a one-to-one service; each scheme is dealt with by a dedicated consultant, who is responsible for carrying out all aspects of the pension fund work.
Each consultant takes responsibility for their own work, from start to finish, and will always be the direct contact for their clients.
We know what’s important to you. We are very experienced in our field and so understand the needs of small businesses.
Compliance. We ensure that client proposals meet HMRC approval.
Breadth of offering. We are well placed to offer our clients alternative suggestions to find a solution if and where needed.
Truly independent. Our clients can choose their own bank, accountant investment manager and solicitor – they are not bound by our suppliers of these services.
‘One stop shop’. Through our parent company, the Gordon Dadds Group, we are able to point clients in the right direction for every aspect of their legal and professional needs, both personal and professional.
Who should you contact for more information?
Consultant Nigel Pocock
Consultant Nigel Page