These are pension schemes set-up purely for the benefit of a company management and shareholders. There are many benefits to setting up a Directors pension scheme. The value of pensions and the income they produce can fall as well as rise, you may get back less than you invested. Tax treatment varies according to individual circumstances and is subject to change. A SIPP (a Self Invested Personal Pension scheme) is typically a pension product that self-investors will use on a provider’s platform, in order to self-manage funds. A SIPP will normally allow you to invest in a wider range of assets than a personal or occupational pension will. This also includes commercial property. Historically SIPPs were more expensive to run, because they had more whistles and bells. In recent years due to advances in software and technology they have been made widely available to retail investors. However, the trade off with this streamlined product can be that some of the SIPPs functionality has been watered down. A SSAS is established with a Trust Deed and Rules where the Directors select the Members, who are usually also the Trustees. You are likely to need Professional Trustee service to help you set up and run the scheme. The Trust Documentation and the Rules of the Scheme must be in accordance with the requirements of HMRC which registers each Scheme and grants Tax Exempt status. The Sponsoring Company makes contributions on behalf of the Directors and Members. Employer pension contributions are treated as a trading expense so attract full Corporation Tax Relief. This means the Sponsoring Company may make contributions when profits and cash flow allow. The contribution should not exceed the Maximum Contribution Annual Allowance in order obtain Tax Relief. Perhaps the greatest benefit to SSAS members is the breadth of investments allowable, and the overall flexibility of these schemes. This can help enhance the retirement benefits for company directors and scheme members. The most important advice I give to my clients is to plan carefully and do not leave things to chance. My job is to help grow and protect your assets by providing the knowhow you need to make informed decisions about your future. I then help you implement the strategy into reality. I will work with you over the long term, helping you to build a successful and robust financial situation.
SSAS & SIPPs
What is a SIPP?
Benefits of using a SIPP
Disadvantages of using a SIPP
What is a SSAS?
Benefits of the SSAS
Disadvantages of SSAS:
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