Small Self-Administered Schemes (SSAS)
The savvy pension for small business owners
A Small Self-Administered Scheme (SSAS) is a powerful pension solution designed to help executives and directors in a company build up a retirement fund, offering greater control and flexibility compared to other pension products.
While SIPPs (Self Invested Personal Pensions) have stolen the spotlight in recent years, SSASs have been an invaluable planning tool for over 30 years. And unlike a SIPP, a SSAS can lend money back to the business and combine pension assets across members, perfect for directors and key shareholders looking to make their retirement savings work harder.
As the SSAS market matures, key issues like investment suitability, benefit drawdown, and succession planning demand expert attention. That’s where we come in.
Our experienced SSAS team delivers clear, compliant, and valuable support, with a high level of personal service. We bring the same standards you’d expect from a premium SIPP provider, plus a wealth of in-house expertise that makes running your SSAS simple, efficient, and cost-effective.
Six reasons a SSAS makes sense
Lend money back to your business
Our SSAS products allow the scheme to lend up to 50% of the pension fund back to the employer, which can be a powerful financing tool, giving the business access to much needed capital without relying on banks or external lenders.
Pool your assets
A SSAS can include up to 11 members, and pension assets can be pooled together into a single scheme, allowing you to:
- Negotiate better deals, increase scalability, and spread risk more effectively
- Purchase commercial property through the SSAS, including your own business premises which can then be leased back to your company
- Simpler and more cost-effective than running multiple separate schemes
Improved tax efficiency
Employer contributions are usually tax-deductible, and rent paid to a SSAS-owned property goes back into the pension tax-free.
A range of retirement benefits
Our SSAS products offer a range of retirement benefits, giving members control over how and when they take their pension, including tax free cash, flexi access drawdown, and uncrystallised funds pension lump sum (UFPLS).
Effective intergenerational planning
Family members can become scheme members, and assets can be passed on in line with retirement goals and family legacy. SSAS property and loanback features can be used to plan business handovers or future growth—integrating retirement and succession plans.
Gain greater control and flexibility
SSAS members can make their own investment decisions and benefit from more control over how funds are managed. A SSAS with Talbot and Muir offers a wide range of investment options, including:
- Commercial property
- Corporate bonds and shares
- Units in regulated collective investment schemes
- Shares in investment trusts
- Real estate investment trusts (REITs)
- National Savings & Investments (NS&I) products
- Gold bullion
Independent Pension Administration and Trusteeship
We provide independent trusteeship through our specialist trust company, TM Trustees Limited, who act jointly with the member trustees to fulfil the formal role of administrator, in compliance with HMRC regulations.
We can establish new SSAS for an employer as well as take over existing SSAS from other providers, making sure it is registered in accordance with the appropriate legislation.
At establishment we will:
- Prepare application pack and governing documents.
- Create the scheme and register this with HMRC, TPR and ICO.
- Set up the scheme bank account.
- Provide technical advice.
- Carry out online registration of scheme administrators.
Annually we will:
- Provide professional trustee and joint scheme administrator services.
- Reconcile banking transactions.
- Keep all records.
- Provide an annual valuation of investments (excluding properties).
- Recover tax on investment income (where applicable).
- Prepare and submit scheme returns where required.
SSAS Loanbacks
With a Talbot and Muir SSAS you can loan up to 50% of your pension fund back to your business, giving you access to capital - without relying on external lenders.
SSAS forms
SSAS documents are created for each individual SSAS established or taken over. Use the below forms and questionnaires to provide us with the relevant information. If you need any guidance, please contact our sales support team.
SSAS - a great addition to an adviser's toolkit
Published by ILP Moneyfacts in 2022
A SSAS is a really useful planning tool for advisers and is often overshadowed by SIPPs, but there are advantages to using a SSAS rather than a group SIPP.
There has been a significant increase in the enquiries into Talbot and Muir and the Curtis Banks SSAS team in Bristol, both part of the Nucleus Group.
Passing on assets
For business owners, the passing on of assets and sucession planning is a high priority. For them, a SSAS is an ideal scheme, in particular if there are illiquid assets or where a sale would be detrimental, such as a business premises or unquoted shares.
This is a relatively simple process. If a member of the SSAS wishes to retire or leave the pension scheme, this can be funded by cash which should have accumulated in the SSAS bank account or other liquid assets, leaving the more illiquid assets intact for future members to utilise.
Loanbacks
Another benefit of a SSAS is that loans can be made to a sponsoring employer provided they meet the requirements set out by HMRC which cover security, term, amount, interest rates and repayment terms.
In basic terms a loanback cannot exceed 50% of the fund value, which is tested at outset so if the value of the fund drops there won't suddenly be a tax charge. The interest rate is a minimum set by HMRC at 1% over bank base rate and the loan must be secured as a first legal charge over an asset. The repayments must be equal capital and interest payments payable at least annually and the term of the loan cannot be more than five years.
The loanback is then used by the sponsoring employer for business development purposes and allows thesse funds to be utilised by the business.
Loans to unconnected parties
A SSAS can also make loans to unconnected parties, which need to be on commercial terms but the restriction of security and interest rates etc do not apply.
Property purchase
As with SIPPs, SSAS can purchase commercial property. This could be an existing business premises, which the SSAS purchases and sale proceeds are returned to the business creating business liquidity or it could be a new premises. The business uses the pension fund to purchase the building as opposed to finding an alternative source of funding. Rent is then paid to the SSAS.
Opportunities
For advisers, there is a great opportunity not only to set up a new SSAS for clients, but also to help firms that have found themselves with an over-priced or poorly run SSAS. This is often due to the Scheme Administrator duties having been left to an unsuspecting scheme member, who has unwittingly allowed the scheme to drift into dangerous territory where they face heavy fines and penalties. There is no need to break up these schemes as they can simply be moved to a new administrator who can offer the required levels of administration and regulatory oversight.
It's important to undertake due diligence on the potential SSAS administrator, understanding the size of the business, number of staff, company accounts and the allowable assets. Taking a good look 'under the bonnet' could allay future concerns and ensure the administrator is committed to the sector and can provide the service clients need for the long term.
So, a SSAS is something that clearly has a place in planning for business clients, it isn't just established firms looking at SSASs, the millennial generation is also taking more control of their pension planning alongside their business proposition. As a specialist area, it is important to work with a professional firm so advisers can provide a better experience and retirement for clients.
Loanback case study
Bob and Janet Goodwood owns a successful sawmill and have spotted an opportunity to build high end wooden garden furniture, but they need to invest in new machinery costing £50,000. They considered leasing or hiring but have decided they would like to buy it outright.
Good Wood Ltd have retained profits in the business and could afford to buy the machinery but their financial adviser presents an alternative solution via a loanback from their SSAS.
The directors make a significant contribution into their SSAS of £100,000, which reduces the company profits by £100,000, providing a corporation tax relief reduction of £19,000. The company then approaches the trustees of the SSAS regarding the loanback and agrees to lend the company £50,000. The company uses this £50,000 to purchase the machinery.
The loanback facility within the SSAS makes sound tax relief planning and Good Wood Ltd not only managed to secure the machinery but saved the corporation tax and made a large contribution to their pension scheme.
To be eligible for a loanback the following must be considered:
- The loanback must be secured and repaid in equal regular instalments and be for a bona fide business purpose
- The interest rate is a minumum set by HMRC at 1% over bank base rate
- The loan must be secured as a first legal charge over an asset
- The term of the loan cannot be more than 5 years
- Loanbacks cannot be for more than 50% of the net asset value of the SSAS.
Is your existing SSAS up to scratch?
Avoid costly fines or scheme de-registration by ensuring your SSAS scheme administrator meets HMRC’s ‘Fit and Proper’ standards.
Contact us today to book your free, no obligation SSAS review.