The Business SSAS

The Business SSAS pension is a Small Self-Administered scheme (SSAS), established by the director of a trading company. The SSAS is the most flexible UK pension and gives control back, over frozen or dormant workplace and personal pensions.

Whilst many see pensions as boring, inflexible and inaccessible until after age 55, the Business SSAS pension is the opposite. It is merely a savings and investment account inside a tax efficient wrapper.

Created by government, under HMRC regulations, the Business SSAS allows business owners to align their pensions and their businesses to achieve optimum tax efficiency. In addition to all of the benefits traditional pensions offer, there are extensive tools and advantages such as the ability to loan to your business from your pension, invest in property, loan to a 3rd party, build a legacy, ring-fence and secure assets, save on inheritance tax and much more. Unlike the SIPP, which is a personal pension, the Business SSAS is a corporate pension and so regulated by HMRC and The Pensions Regulator.

A Business SSAS pension scheme can have up to 11 members. These members can be other company employees and/or family members. This offers added advantage as, not only can you combine all of your own pension into one pot, but you can pool pensions with other members, giving greater investment choices and power. All members retain the same percentage portion of the total pot, but as it grows at a faster rate and enjoys extensive tax benefits, each member elevates their own funds.

In addition to the usual tax exemptions available for pensions, a Business SSAS pension offers greater control and flexibility over business and personal assets, when integrated into your strategy. Innovative strategies can be created to grow your business, save tax, and elevate the growth of your retirement fund for yourself and other SSAS members.

For SME businesses, the SSAS is a gamechanger.

• Use the SSAS loanback facility to achieve much needed business funding
• The purchase of commercial property. This could include the business premises. Premises can be leased back to the company or a 3rd party
• Rent paid by the company, to the Business SSAS, is an allowed business expense and those funds paid from company to SSAS reduce profit for the year-end tax bill calculation
• Rent received by the SSAS is not liable for income tax
• Profit made upon the sale of the premises is not liable for corporation tax
• You are able to make a loan from your Business SSAS pension, to your company, providing essential cashflow
• A loan from your SSAS to your company could be used to purchase property or for the development of property
• You could use your SSAS to buy an equity stake in the company, providing cashflow
• Limited company investment options are extensive. As a company, you are able to start a SSAS pension and invest in a vast array of asset classes.
• Fees are not dependent on fund size, so consolidation of funds is possible for easier management, greater growth and control