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Ten reasons to opt for a SSAS

SSAS, short for Small Self Administered Scheme has become increasingly popular during the economic downturn as it offers a range of benefits to smaller businesses.

Here Taylor Patterson provides an insight into SSAS and offer our top ten reasons for opting for a SSAS pension.

A SSAS is an occupational registered pension scheme that can be established by company directors and key employees.  It is ideally suited for shareholding directors of family and other privately owned small to medium sized limited companies. 

Taylor Patterson has developed its own SSAS pension as part of its services – the Taylor Patterson SSAS.

Taylor Patterson associate director, Kerry Houghton, says: “More and more of our clients are finding that SSAS pensions are right for them, helping them financially from both a personal and a business point of view.

“It’s been well publicised that many small business owners are finding it difficult to get loans from high street banks. A SSAS can be one way to address this as loanbacks are possible, meaning pension holders can lend money to their own businesses at more cost effective rates.

“SSAS pensions can also be used to purchase commercial property and lease it back to the company at market rates.  When times are hard this can also be an advantage as a SSAS-owned property can be better protected from company creditors.

“The details of what’s possible through a SSAS pension can be complex, hence we really encourage our clients to come and talk to us about their pension arrangements so we can arrange the best possible products for them personally.”

1. Beat the banks with a loanback

A SSAS can lend money to a connected business, providing both a good return for Trustees and cost-effective borrowing for the business.

2. Make property pay

SSAS members can directly purchase commercial property and lease it back to the business at good rates. There are a number of additional tax saving benefits of doing this including capital gains tax exemption and tax relief on pensions contributions.

3. Providing for all ages

A SSAS is a pooled fund, so, with careful cash flow planning, it can help provide for older members looking to draw benefits.  If the main fund assets are property, then older members can retire and use the rental income from the property to draw a pension.

4. Making company contributions flexible

There is no contractual commitment to pay a particular company pension contribution, so they can be varied in line with profitability.

5.  Spread your investments

The SSAS can invest in a range of investments, although there are some which may not be allowed on the grounds that they would be deemed taxable by HMRC, for example most forms of residential property. 

6. Protect your assets

Businesses can protect their assets against business creditors in an economic downturn by using a SSAS to invest in commercial property.  It is therefore possible to sell existing business premises to the SSAS at a market rate, whilst also providing cash for the business and a healthy retirement fund for business owners.

7. Keeping costs down

Annual administration costs are usually cheaper than operating several pension arrangements for each member of the SSAS scheme. 

8. Bigger benefits

The Taylor Patterson SSAS allows for withdrawal of benefits via scheme pensions.  This can be a big benefit for any scheme members in ill health and can provide higher income withdrawal limits than other pension options.

9. Keep your money in one place

Members can transfer funds form most types of UK registered pension schemes. They then be consolidated into one single SSAS and the funds used for new investments such as buying property or stocks and shares, or loans to the business.

10. Appoint your own advisers

Subject to prior approval by Taylor Patterson, scheme members may act as their own property manager, or appoint a solicitor, surveyor, property agent, stockbroker, accountant or tax and investment adviser to help manage the pension fund.

For more information on SSAS pensions or other alternative pension schemes, please contact Taylor Patterson’s dedicated team of SSAS technicians and administrators who can assist further on 01772 555 073 or email sippssas@taypat.co.uk

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