Owner/Directors and Small Self Administered Scheme

Should Owner/Directors Start a Small Self Administered Scheme?

A Small Self Administered Scheme (SSAS) is a type of UK occupational pension scheme, often referred to as an Investment Regulated Pension Scheme, which is well worth considering as a pension vehicle, especially for business owner/directors.

The key points of a SSAS

SSAS is a tax-efficient, flexible, and safe means to build up a pension pot and, potentially, help support investment for your business. The key elements of a SSAS are:

  • A SSAS is a stand-alone pension scheme which has its own trust deed and set of rules;
  • It is legally ring-fenced from the employer who has established it, as well as the the scheme members, and the SSAS provider;
  • All SSAS members are also trustees so everyone has genuine decision-making powers;
  • Each SSAS has its own unique bank account allowing it to operate much like a tax-free business;
  • Each account has full FSCS protection unlike a pooled client account;
  • Although the SSAS is established by a company, non-employees can also become members. This means that family members can join the scheme and benefit from its flexibility;
  • The SSAS has the widest range of investment options of any pension arrangement in the UK. With a SSAS, you can:
    • Buy commercial property;
    • Make business investments;
    • Buy shares;
    • Offer a secure loan to a contributing employer;
    • Take out a loan;
  • Investments can change without re-registering;
  • Investments can be earmarked for specific members, or pooled, or there can be a combination of both;
  • Each member has their own choice from the full range of retirement options available, including passing it on to the next generation, taking a lump sum, or buying an annuity.

When all this is taken into account, we believe that Small Self Administered Schemes are well worth considering for Owner/Directors, especially when the cost of setting up and running a SSAS are deductable expenses against Corporation Tax and the VAT can be claimed back.

At PML we are SSAS specialists

Of course, these freedoms can come at a price.  If the Trustees get it wrong there can be heavy tax penalties levied on the Members and the Scheme.  This is why you need PML to set up and run your SSAS.

We specialise in Small Self-Administered Pension Schemes.  Our job is to ensure that every SSAS works as hard as possible at delivering benefits for the members, without paying unnecessary fines and tax penalties.

In addition, through our sister company, PML Trustees, we have many years of experience of being Pension Scheme Trustees, mainly acting as Independent Trustees to Small Self Administered Pension Schemes.

If you are interested in a SSAS, contact us or call us on 0121 693 0690 for a free initial chat.

0 comments on “Owner/Directors and Small Self Administered Scheme
  • SSAS and Legal Entity IdentifiersWhat are Legal Entity Identifiers and Does Your SSAS Need One? From 3rd January 2018 it will be a requirement for legal entities and structures to obtain a reference called a Legal Entity Identifier (LEI) from the London Stock Exchange in order for the trustees of a SSAS to carry on investing. This» Read More
  • Mr C.CPML set up our SSAS in 1998 and has looked after us ever since. The relationship started when our accountant suggested to my business partner and me that we should consider using an independent financial adviser to best place the monies in our pension plans rather than leave them with one large international insurance company.
  • How we work closely with Financial Advisers (Part 2)A Financial Adviser had a client with insured pension arrangements of various amounts, including an arrangement with guaranteed annuity rates. The client wished to use his pension arrangements to purchase a commercial property that was owned by the sponsoring employer. Not surprisingly the Financial Adviser did not want to lose the» Read More