So what exactly is a SSAS?
A Small Self Administered Scheme (SSAS) is an occupational pension scheme that gives its members and Trustees lots of flexibility and control over what it invests in. A bit of technical speak: It is a specific form of trust which complies with the Finance Act 2004 and is registered with HM Revenue Customs & Excise (HMRC) as a registered pension scheme.
A SSAS is set up on a “money purchase basis”. This means that the money members get out of the scheme when they retire depends on how much money is paid in for them, and how their investments perform.
The scheme can have up to 12 members and they are most likely to be directors, family or key employees of a company – which is known as the ‘sponsoring employer’. Members must be over the age of 18 and for our schemes, all members are also Trustees.
The sponsoring employer is the company who pays the contributions to the scheme for its employees. Contributions can be varied in line with its profits and there is no commitment to pay any level of contributions so no profit one year = no contributions have to be made.
Any contributions made to the scheme are tax relievable which means they are deducted from the company profits when calculating its corporation tax bill. Contributions can be made regularly, as one offs or a combination of both.
There is a maximum level of contributions that can be made for members and the level will vary depending on each member’s circumstances. We always check this out once we have details about each member.
An employer can have more than 1 SSAS and the company is active and trading.
The benefit of a SSAS is that it isn’t tied to a particular provider so it can be moved to another provider if you are not happy the service you receive. The same goes for our SSAS’s, if you are unhappy with our service, you can choose another provider to deal with your scheme.
We do not charge for you to move (to us or away from us), that’s how confident we are that you will be happy with our service. Any member can also transfer their share of the scheme to another pension scheme if they no longer want to be part of the scheme. The scheme can also be wound up once all members have been transferred out.
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