We are working hard today so that we can have a financially stable backbone to fall back on in the future and schemes like SSASs or SIPPs allows employee this exact benefit. Small Self-Administered Schemes (SSASs) is an employer-sponsored pension scheme that comes under occupational pension and is designed to provide employees with a tax efficient retirement and death benefit plan.
This scheme is recognized under the Finance Acts as an HMRC registered pension plan that allows up to 11 members, namely, company directors, senior executives, family members, etc. However, investment and tax redemption due to the Small self-Administered scehemes still require a lot of judicious decisions, financial planning, hefty paperwork and more which is why our pension specialist team in Goodhams has been specially trained to help employees make the best of their self-invested financial savings by helping them walk through the complex ties of rules and regulations.
Primary Difference between SSASs & SIPPs
Both the scheme has the same underlying tax rules with the only difference being legislation.
In SSAS, the pension scheme is set up by the company directors. Company directors channel the employee self-invested pension into the business and each member of the SSAS becomes a trustee for the company. In this way, directors can gain more control and support for their business investment plans.
In SIPP, the pension scheme is set up by an insurance company or a SIPP operator. However, the investment controls rest in the hands of the member itself.
Why choose SSAS over traditional pension schemes?
Traditional pension funds tend to limit the classes of assets that the self-invested pension amount wants to invest in. On the other hand, financial schemes like SSASs and SIPPs offer a wide array of investment opportunities which include open-ended investments, loans, commercial properties, unit trusts, stocks and shares, deposit accounts, and more. In fact, these pension schemes have ongoing tax benefits with free investment growth in terms of Capital Gains Tax and Income Tax.
Contributions made by members towards the SSAS pension are eligible for tax relief with the basic taxpayer rate being 25%. This means HMRC will add £25 for every £ 100 taxpayers pay to the pension fund. If you want to invest a higher rate of tax, you can also claim additional tax relief in your returns. In fact, contribution towards the pension scheme by the employer too qualify for a tax break. However, like every regulatory law, there are some complexities involved, something you might face when you’re trying to file your tax returns. Thankfully, Goodhams gathered a professional crew of administrative and accounting experts who excel at solving legal complexities in terms of SSASs and SIPPs with the service model accurately designed to help pension payers with not just investment but technical advice too. At Goodhams, we believe shaking hands with experts who have been perfecting financial strategies for years can significantly reduce the complexities of these schemes and allow investors a stable and productive output from their self-investments.
Funds invested by you today will provide fruitful financial support in the coming future and to ensure your pension and investments have 100% precision, Goodhams has created the following list of assistance you can expect from our financial advisers and accounting maestros-
- Acquisition & Administration of property
- Investment Management
- In-depth Information Dissipation to scheme members
- Technical Support
- Assistance with Annual Financial Statements
Additional Benefits By Goodhams
Apart from SSASs, Goodhams team will also help you with
- Pension scheme registration with HMRC
- Arrangement and calculation of payment benefits
- Submission of returns report or other reports to HMRC
- Administration, accounting & management of your pension scheme on behalf of the trustees.
If you’re yet to join the SSAS or SIPP scheme, our team will help you build your pension fund from scratch with our ongoing services including in-depth analysis and consultation, corporate tax relief, personal tax relief and more. However, the content in this page is purely for information purpose and covers only the basics of the investment schemes. If you wish to know more about these financial schemes or wish to start from scratch using our expert consultation, do give us a call and one of our representative’s will get in touch with you shortly.