Working with SSAS pension specialists
This page does not constitute financial advice. Optimise Accountants are not qualified financial advisors not regulated by the Financial Conduct Authority (FCA) or The Pensions Regulator Authority (PRA)
We work with financial advisors to ensure that our clients invest money in a safeguarded environment that protects their money whilst working with Optimise Accountants’ pension tax experts to maximise their tax position.
What is a SSAS pension?
SSAS stands for Self Administered Pensions Schemes. A SSAS pension is regarded as a workplace pension scheme or employer-sponsored pension. This type of pension is often used by shareholders of limited companies; usually, owner/managed businesses. You may have heard SSAS pensions being referred to as an occupational pension scheme or a family pension. Please note that workplace pensions, family pensions and occupational pensions schemes are the same thing and are regulated by the Pension Regulated Authority (PRA)
A SSAS is limited to 11 members. We work with a specialist SSAS pension provider to set up a SSAS pension for its members to contribute. Companies benefit from corporation tax relief on pension contributions of 19%
This is one of the main draws of owner/managed businesses to set up a SSAS pension. A SASS is in a trust and managed by trustees, usually the business owners. SSAS trustees have legal responsibilities that they will need to learn and uphold.
SSAS pensions will need to have a scheme administrator responsible for the day to day management of paperwork and processes involved between the SSAS pension fund, business and trustees.
£40,000 may be invested into an individual’s SSAS pension. There are tax charges applied if SSAS pension contributions are made beyond the £40,000 unless individuals have prior year amounts to invest. Do take advice from a SSAS specialist on this point.
Can you transfer existing pensions into a SSAS?
Many of our clients that work with our SSAS pension advisors ask if their existing pensions can be transferred into a SSAS. One of the reasons they want to transfer existing pensions into a SSAS is to better control how their pensions funds are invested.
Benefits of a SSAS pensions investment fund
One of the benefits of a SSAS pension is control. Business owners can contribute towards the pension, get tax relief, and control the money invested. Please note this is a great way to extract money out of a limited company without paying tax.
Some of the key benefits of SSAS pensions are:
SSAS pension contributions are tax-deductible
Money contributed from the company to a pension is free from Inheritance Tax of the business owner
Tax free withdrawals
- Pension holders can withdraw up to 25% of pension fund at 55 without paying tax. The age will increase to 58 from 2028.
What can you do with the company pension contributions into a SSAS pensions, as suggested by our SSAS pension experts
Here are some other key benefits for business owners that are looking to invest in their own Self Administered Pensions Schemes
Invest money into shares, bonds and gilts.
Invest in own buildings
Invest in commercial property such as your own office, warehouse, shop etc. The money you pay to the SSAS pension in the form will be tax-deductible for your business operations. The rent money paid into the pension will grow tax-free in the pension.
Invest in own business
Take SSAS pension funds as a loan and put them into use within your trade business activities. Please note that the loan does need to be paid back within 5 years and a commercial interest rate charged from the SSAS pension.
Next steps for your SSAS pensions set up
The money invested in the pension will grow tax-free too. SSAS pension holders will only be taxed once they extract the money upon retirement.
Is it time for you to set up a pension?
Please complete the below form to tell us more about your pension investment plans