SSAS Modelling

It's a special business model designed for business owners, helping them benefit from their profitable businesses and start saving for their future. However, it's not a private pension or something similar; this is a Small Self-Administered Scheme (SSAS). By adopting the right business structure and planning, and benefitting from tax efficiencies, you could save £1 million over the next ten years.

Business owners: Did you know that by adopting the right business structure and planning, you could save £1 million over the next ten years? This is a question every business owner should consider when running a successful business. If you're fortunate, you may have a proactive business advisor who can help make this happen for you. But what if you’re not so fortunate? As a business owner, have you considered how you will structure your business to maximise your return on investment and future opportunities? It is feasible to make your investments in a tax-advantageous manner while maintaining your successful business, saving on corporation tax, capital gains tax, and even inheritance tax. As the owner of a successful, lucrative business, you could save £1 million in the future. Are you looking to invest in property? Did you know that you can raise funds, make deposits, and achieve tax-free rental income, further expanding your future savings? Are you looking to invest in property through a trust fund? Did you know that it's not just about making it more tax-efficient, but also about saving and growing your funds much more tax-efficiently? Are you looking to take control of your pension fund? Did you know that SSAS is a popular option for many as it offers flexibility, control, and additional benefits? It permits the consolidation of UK Pension Benefits through Recognised Transfers of your accrued pension rights, both into the SSAS and from the SSAS to any other Registered Pension Scheme or Qualifying Recognised Overseas Pension Scheme. It gives you the freedom and control over your money and investments, including non-employees (such as family members), low-cost lending back to your firm, and tax-saving property ownership. Are you looking to invest in your business? Did you know that you have available investment opportunities to build up the pension funds, including investments into the Sponsoring Employer (your business)? Are you looking to raise funds for your business? Did you know that you have available investment opportunities to build up the pension funds, including loans to the Sponsoring Employer (your business)?

Invest in property: You can raise funds, make deposits, and achieve tax-free rental income, which will further expand your future savings. Invest in property through a trust fund: It’s not just about making your business more tax-efficient; it's also about saving and growing your funds more effectively. With this model, you can achieve much more efficient outcomes for the same objectives. Take control of your pension fund: SSAS is a popular option for many as it offers flexibility, control, and additional benefits. It allows the consolidation of UK Pension Benefits through Recognised Transfers of your accrued pension rights, both into the SSAS and from the SSAS to any other Registered Pension Scheme or Qualifying Recognised Overseas Pension Scheme. It gives you the freedom and control over your money and investments, including non-employees (such as family members), low-cost lending back to your firm, and tax-saving property ownership. Invest in your business: You will have available investment opportunities to build up the pension funds, including investments in the Sponsoring Employer (your business). Raise funds for your business: You will have available investment opportunities to build up the pension funds, including loans to the Sponsoring Employer (your business).

The key benefits of a SSAS include the ability to: Receive UK tax relief on qualifying contributions made by you or on your behalf. Consolidate UK pension benefits through recognised transfers of your accrued pension rights, both into the SSAS and from the SSAS to any other Registered Pension Scheme or Qualifying Recognised Overseas Pension Scheme. Allow all funds (except those producing UK dividend income) held within the SSAS to grow free of UK tax. Increase the growth of your funds further by allowing your Sponsoring Employer to pay all administration expenses. Take a tax-free Pension Commencement Lump Sum, which is normally up to 25% of your fund value, from the minimum pension age, which is currently 55. (You may be able to retire earlier than 55 on the grounds of ill health.) Receive an income during retirement either directly from the SSAS or by purchasing an annuity. Upon your death, allow your funds to pass to your beneficiaries free from inheritance tax.

Contributions made by an employer will be paid into the scheme gross, and if deemed to be ‘wholly and exclusively’ for the purpose of trade for that employer, they will attract tax relief as an operating expense for the business. Members have three options available when making contributions themselves: If their employer’s payroll supports it, they can make contributions using the Net Pay method. In this case, the member’s contribution is deducted from their gross salary before the deduction of any tax, and the contribution is then paid directly into the SSAS by the employer. A member may make gross contributions directly into the SSAS and claim the associated tax relief through their personal Self-Assessment. The SSAS may register for and operate a Relief at Source Scheme. With this method, the member will pay a net contribution to the SSAS, the scheme administrator will apply for and receive the basic rate of tax relief on the contribution, and the member’s basic rate tax band will be increased by the sum of the gross contribution to allow for tax relief at the higher or additional rates.

As the SSAS provides retirement benefits to its members on a Money Purchase (Defined Contribution) basis, the level of pension income achievable at the point you wish to retire will depend on several factors: The size of the fund attributable to you at the point you wish to retire: This will depend on the amount you invest into your SSAS through transfers and contributions, the performance of the underlying investments held by the SSAS, and the fees and charges incurred along the way. The timing of your retirement: The values of the underlying investments within the SSAS are likely to fluctuate with market conditions. The value of an investment can go down as well as up, and there is always the risk that you may not get back what you originally put in. If you decide to purchase an annuity with your retirement funds: It’s important to remember that annuity rates also fluctuate with market conditions.

Pension tax legislation is subject to change and can impact the growth of your funds within the SSAS as well as the options available to you at retirement. These changes could be more or less favourable depending on the nature of the amendments to the legislation.

ax rates are also subject to change and may impact the net retirement income you receive. Additionally, some investments carry higher risks than others, so it’s important to understand the risk profile of the underlying investments in your SSAS.

We offer an execution-only service as a Scheme Practitioner/Scheme Administrator and do not provide any form of regulated advice. We recommend that anyone considering transferring existing pension benefits into a SSAS or carrying out duties as a Trustee of a SSAS seek advice from a suitably authorised and regulated adviser. Having a proactive advisor and a comprehensive plan is crucial for future prosperity and success. To build future savings worth £1,000,000, business owners need to consider various aspects of their business, from structure to lending costs and the involvement of family members. While business structuring might not be the sole element in future savings, it can significantly impact reaching the goal of a £1,000,000 savings pot. To create such future funds, business owners must also focus on tax planning. We assist in guiding how business owners can structure their business and what to consider when building long-term wealth. Business structuring is a critical decision for creating a business, whether it is limited or unlimited in form. Expanding and developing new products and services can be very attractive, especially for small business owners aiming to enter new markets while continuing to serve existing ones. However, while business structuring is crucial for long-term success, it is not the only factor determining a business's prosperity. A comprehensive understanding of the business structure and its tax efficiency is essential. Small and growing businesses that utilise tax-efficient structures can enjoy numerous advantages, including greater control over money and investments, the possibility of involving non-employees (such as family members), low-cost lending back to the business, and tax-saving property ownership. Although business planning is vital, it does not guarantee success. Business owners should consider how their money would be managed in their absence, the tax implications, and the potential rewards from investing more into the business. Tax planning is essential for business success. The choice of business structure can affect tax rates, and having access to proactive business advisors can make a significant difference in managing these rates effectively.