SSAS Pension Schemes and why they are a great planning vehicle for business owners

4 December 2018

Small self-administered pension schemes (SSAS) can help meet the needs of a business owner wishing to set up a pension arrangement for a small group of co-directors and key employees.

A SSAS is often used to buy commercial premises from where the business can trade, or indeed act like a bank and lend money to the company for new projects, new equipment and business expansion.

Schemes have the ability to pool together your pension savings so it is possible to purchase larger investment assets than you would otherwise be able to acquire individually. The ability to purchase commercial property from any party, rent it to the business and lending money from the SSAS to the business, are very popular features of a SSAS and used by many of our clients.

A SSAS also offers businesses a wide range of other potential investments including stocks and shares, unit trusts, investment trusts, open-ended investment companies (OEICs) and deposit accounts as well as loan backs and commercial property, providing greater flexibility and investment control over your pension arrangements.

There are many SSASs in existence and, sadly, there has been an increasing number of schemes available where the trustees are unhappy with their current SSAS provider for various reasons including costs and services.

If you have found yourself in this position, the good news is that there is no need to break-up these schemes, and they can instead look to appoint new professionals to run it.

Over the past 2 years, the number of schemes run by Old Mill has increased by over 20% and many of these have come from SSAS schemes already in place.

There has also been a number of changes to pension legislation over the past few years. To avoid tax penalties it is essential that registered pension schemes comply with the new regulations and reporting requirements. Old Mill can assist business owners and ensure that their pension complies with the updated legislation no matter how complex their scheme is. We will give them all the information they need to make informed decisions and make certain that the administration runs smoothly.

Old Mill act as scheme practitioner and can deal with the responsibilities of a scheme administrator on their behalf. The scheme administrator has a highly responsible role and protects the member trustees from falling foul of making unauthorised payments or breaching tax regulations which would result in potential penal tax charges.

For those business owners looking to find out more about SSASs, we can arrange an initial free, no obligation, meeting with a pensions manager to discuss their individual circumstances and how we may help.

  • For further information please contact:

    Steve Woodham

    Private Client, Pensions, Yeovil

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