How to set up a SSAS pension
The easiest way to set up a Small Self-Administered Scheme (SSAS) is to have expert support. TLPI offer a lifetime SSAS service, including setup, pension transfers and ongoing investment support.
How to set up a SSAS. Invest in property, save tax and grow your business.
Every Small Self Administered Scheme (SSAS) needs to be registered with HMRC, however, the process can take some time. It is best to start this as early as possible, especially if you are approaching the end of the financial year.
Getting started with a SSAS
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When understanding how to set up a SSAS pension, the first step to setting up a SSAS is deciding who will be part of the scheme. A SSAS is usually intended for a small number of directors or senior staff at a company, but any employees of the company can be invited to join the scheme.
You may also invite your family members and your employees’ family members to join the scheme which is why it is sometimes referred to as the SSAS family pension. Everyone in the SSAS must be aged 18 or over and, in most cases, there are no more than 11 members in the scheme at any given time.
7 steps to establish your SSAS
Step 1: Information about Your Company and the Members of the SSAS
To set up a SSAS, you will need to gather information about your company and each member of the SSAS. Each member will need to provide you with their personal details (contact information, etc.) and a signature. You will also need to decide on a name for your scheme.
In addition to collecting basic details, you will need to know if any members of the pension hold a certificate of protection or a HMRC protection reference number, as well as check if the Money Purchase Annual Allowance applies to any members of your scheme.
Book an enquiry with one of our pension advisers for a full list of the documentation you will need to open a SSAS.
Step 2: Anti-Money Laundering
Complying with anti-money laundering legislation is a legal requirement. It is important that each member of the SSAS has their identity verified.
Step 3: Transfer Existing Pensions
Every member of the SSAS must decide whether they would like to transfer any existing pensions to the new scheme. This is optional and each member may transfer as many or as few pensions as they like. We recommend that each member of a new SSAS talks to an independent financial advisor before making a decision.
Step 4: Trust Documentation
A SSAS is a trust, which means that it is run by designated trustees. All members of the SSAS are trustees, although a member can opt out in very specific circumstances. The SSAS needs at least 1 trustee to continue.
The pension must also include a pension administrator. The SSAS scheme administrator can be a member or trustee or an appointed professional. Being a trustee comes with legal responsibilities, so all trustees should know their obligations and the potential consequences of failing to meet those obligations.
We also recommend that any SSAS service you employ includes legal compliance of the package. This can help protect the scheme from breaching HMRC rules and The Pension Regulator’s regulations.
Step 5: Registering with HMRC
The trust needs to be registered with HMRC before any contributions are received. The trust will also need to open a bank account to receive contributions.
Step 6: Obtain a Pension Scheme Tax Reference Number
A Pension Scheme Tax Reference (PSTR) number is a unique code made up of eight numbers, followed by two letters (XXXX XXXX OO). Every new SSAS will need a PSTR from HMRC, as it shows that the scheme has been registered for tax relief and exemptions.
Step 7: Register the SSAS with the Pensions Regulator
The Pensions Regulator is the UK Regulator for work-based pensions, which includes SSAS. It is important to register your SSAS with the Pensions Regulator. The Pensions Regulator is sponsored by the Department of Work and Pensions (DWP).
TLPI has a simple process to make establishing a SSAS pension very straightforward. Once the above steps are complete, your SSAS can begin to receive contributions. If you have any questions about any of the steps listed here and would like to speak to a pensions advisor, please call 01235 426666 or book a no obligation consultation online.
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Paul Reid
01.09.2024
I am nearly through the setup process for my SSAS. HMRC have taken about 12 weeks to approve the scheme. TLPI have been quick in getting the SSAS setup process started and have monitored the HMRC approval, responding to questions HMRC asked. TLPI prepared the new bank account application and pension transfer request, ready to submit upon HMRC approval, of the SSAS. Time to complete the setup is as short as possible with TLPIs proactive setup process.
Kenneth Irabor
21.08.2024
I am incredibly pleased with the service provided by TLPI in setting up my SSAS pension. The team was professional, knowledgeable, and supportive throughout the entire process. They guided me every step of the way, ensuring that everything was handled smoothly and efficiently. Thanks to their expertise and commitment, I've already seen an initial successful investment, which has given me great confidence in their abilities. I highly recommend TLPI to anyone looking for top-notch support in managing their pension and investments.
Tommy Meads
19.09.2024
We used Jordan @ TLPI to set up a family trust for our company to purchase a commercial property. He was efficient, informative and professional every step of the way. If there were any queries during the whole process they were resolved promptly. This was our first dealings with family trusts and TLPI's guidance during this time was highly valued! I would highly recommend them!
Liam Thomas
15.08.2024
Jordan looked after us incredibly well from start to finish. Dealing with tax can be a complicated process but Jordan simplfies everything and takes the time to answer all of your questions in detail. Would highley reccomend.
Richard Smith
11.07.2024
TLPI provide a brilliant service full stop. From our initial conversations they have been extremely helpful, diligent and thorough. I can't thank them enough for their advice, pointers and guidance that they have provided so far. They have made something which to me is extremely complex and confusing feel very straight forward.
Cris Emson
29.05.2024
I much appreciate the help and guidance TLPI have given me in setting up a Family Investment Company, and now we have reached the end of the first year we are now preparing the first set of annual accounts. Again TLPI are proving invaluable is giving help and advice, and I am sure none of this would be possible without their expert support.
Keith Jones
17.08.2023
Tlp have been fantastic with there advice and help in setting up my retirement plans , putting structures into place to help with future generational hand over of assets, great advice from Jordan Sharpe, easy to deal with and always on hand for help when needed, well done all, 👏 ✔️
Big thanks to sue for all your outstanding work, sue kept me updated with my pension transfer every step of the way, I would have no problem referring them on to anyone who needs sound advice and financial pension planning, thanks again for all your help,
Vipin Varsani
03.08.2023
Very helpful through the whole process and after.