A SSAS (Small Self-Administered Scheme) is a type of UK occupational pension scheme for small businesses. It provides tax benefits such as corporation tax relief on contributions and tax-free growth of investments. Key benefits of a SSAS include allowing business owners to control the scheme as both members and trustees, provide loans to their business, purchase commercial property with tax reliefs, and consolidate all pension funds in one place with lower administration fees than other pension types.

2. Did you know….?
A SSAS:
• will reduce Corporation Tax every year a contribution is made
• can receive a large pension contribution up to £500k and receive
Corporation Tax relief in the current Tax year
• can receive carried-forward pension contribution allowances
up to £150k per Director
• can receive pension contributions with or without cash from the
business
• can lend to the business
• can buy business premises
• can borrow money to purchase commercial property
• can receive rent Tax free on commercial property
• provides an Auto Enrolment solution for business owners
• can hold all existing pension funds in one place under personal
control
• can reduce pension administration fees
• allows more flexible HMRC approved investments than any other
scheme
• increases a pension fund through Tax free and compound growth
• allows Members i.e. business owners to access 100% of the fund
at age 55
• gives business owners total control

3. Contents
1. Background to the White Paper
2. What is a SSAS?
3. What a SSAS can do for business:
a. Corporation Tax relief through contributions
b. Use of Property Tax reliefs
c. Loans and borrowing facilities
d. All pensions in one scheme under Members control
e. Reduced pension administration fees
4. Enrolex: an Auto Enrolment solution for Directors and employees
5. Investments within a SSAS
6. Retirement options within a SSAS
7. Summary
8. SSASCo advisers support package

4. This paper introduces SSAS pensions and
gives an overview of the many benefits they
can offer to both professional advisors and
business owners.
SSASs have lost prominence in the
pension marketplace and many advisors
have assumed that they are no longer
available. Those that are aware of their
existence are typically not aware of the many
benefits a SSAS can offer to a business.
In recent years pensions have been
unpopular with business owners because
of the poor options available at drawdown
stage. In addition, the lack of funding
available since the credit crunch has meant
that businesses have been keen to keep cash
within the business. This lack of popularity
has resulted in pensions being largely ignored
by many advisers as a planning tool.
However, two major events have recently
brought pensions back into sharp focus,
which means advisers will once again have a
role in discussing pension options with their
clients. These key events are the new
drawdown rules coming into force in April
2015 and the Auto Enrolment challenge
currently facing all businesses.
This paper makes the case for the use of a
SSAS as part of an Auto Enrolment solution
and demonstrates that SSASs today are the
most flexible form of pension scheme with
more benefits and applications than any
other scheme available and, as such, should
be a financial planning tool that all
professional advisers should be aware of.
Changes in drawdown regulations
As of April 2015 anyone with a pension will
be able draw all of their accumulated benefits
in one lump sum from the age of 55, should
they choose to do so. This significant change
will undoubtedly impact attitudes towards
pensions. Business owners will begin to look
at pensions as a serious planning tool and
start to discuss their retirement plans with
their advisers on a more regular basis.
Auto Enrolment
The volume of businesses who are required
to stage for AE jumps exponentially in the
next couple of years. This creates a series
of challenges and exciting opportunities for
businesses and the impact on professional
business advisers will be huge. Many
business owners are currently unaware of
their obligations with regards AE and will look
to their trusted advisors for guidance.
SSASCo Survey of Accountants and IFAs
To better understand the awareness, product
knowledge and level of preparedness for AE
within our market, i.e. Accountants and IFAs,
we conducted some market research to
identify where our services should be
positioned. The results were surprising:
Survey of Accountants - Results
Our survey of 50 small to medium sized
accountancy practices produced the follow-
ing results:
• 76% (38) rated their knowledge of SSASs at
less than 4 on a scale of 1 - 10
• None of the Accountants had realised it was
possible to use a SSAS within Auto
Enrolment provision
• 34% (17) were not aware that a SSAS could
lend funds back to the business
• Only 7 of the Accountants we spoke to had
planned to speak to their clients about Auto
Enrolment
1. Background to the White Paper

5. Survey of IFAs - Results
Our survey of 50 small to medium sized IFAs
produced the following results:
• 54% (27) rated their knowledge of SSASs at
less than 4 on a scale of 1 - 10
• None of the IFAs surveyed had realised that
it was possible to use a SSAS within Auto
Enrolment provision
• 32% (16) were not aware that a SSAS could
lend funds back to the business
• Only 6 of the IFAs we spoke to had planned
to speak to their clients about Auto
Enrolment
Summary
Our survey shows that only a very small
percentage of advisers are aware that a
SSAS can be utilised to great effect within
an Auto Enrolment solution. In addition there
appears to be a disconnect between advisors
and their clients which is detrimental to all:
• Many advisers are not aware of SSASs and
what they can do for businesses
• Due to the perceived lack of fiscal reward
the attitude of advisors towards AE is tepid
at best
• Advisers are missing out on opportunities to
build relationships with SMEs
• Many Accountants have not realised their
clients’ expectation of them and may not be
prepared for these important discussions
with clients
• Business owners may leave their Auto
Enrolment planning until the last minute,
have no time to explore options and risk
missing their staging date and incurring
financial penalties

6. A Small Self-Administered Scheme (SSAS) is
a type of UK occupational pension scheme
with up to 11 Members. The Pension
Regulator and HMRC regulate SSASs, not
the Financial Conduct Authority.
A SSAS is a Defined Contributions scheme,
(sometimes referred to as a Money Purchase
scheme). The Members’ benefits at
retirement, i.e. what they draw out, are
provided by the fund which has accumulated
through contributions, investments and
compound growth.
A SSAS registered with HMRC enjoys Tax
exempt status. All investments made will be
free of Capital Gains Tax, and employer
contributions to the SSAS will receive Tax
relief.
A SSAS is usually established by Directors
of limited companies for specific employees
of the company and their family members.
However, it is possible to establish a SSAS
for other legal entities such as partnerships
and LLPs.
The Members of the SSAS are usually also
the Trustees, which means there is a reduced
maintenance and regulatory requirement as
the Members of the SSAS are deemed to be
investing the funds for themselves i.e.
Member Directed Investment.
The Trustees can invest the funds as they see
fit, within HMRC investment guidelines. For
example, they can invest the assets of the
pension scheme in the company that
establishes the SSAS. This process is known
as Pension-Led Funding.
In summary, a SSAS is an HMRC
registered pension scheme specifically
designed for small businesses. Its main
differentiating factor is that the
business owners are Trustees and
Members, which means they control
the scheme. This allows more flexibility
than any other type of scheme.
2. What exactly is a SSAS?
A SSAS is the best pension
arrangement for small
businesses because it brings
Tax benefits, Member control
and the facility to grow funds in
a Tax free environment.

7. 3a. Corporation Tax relief through
contributions
A SSAS will reduce Corporation Tax every
year a contribution is made
A business can make pension contributions
on behalf of its Directors. These are allowable
expenses, which means the business will
pay less Corporation Tax. For example, if a
business makes a £50k pension contribution
each for 2 Directors, the Corporation Tax will
reduce by £20k. Importantly, the whole £100k
goes into the pension scheme, unlike other
contribution methods, i.e. personal
contribution from funds after CT and
Dividend Taxes. In a SSAS there is no set
contribution or any requirement to make a
contribution at all. This means that the
business can decide when and how much it
contributes depending on its financial
performance.
Note! Contributions must be
physically made in the financial year
to which they are to be applied so it is
important to decide on the level of
contribution that you wish to make
pre-year end.
3. What a SSAS can do
1 nil corporation tax due since expenditure is fully allowable for tax
2 when benefits are taken (earliest age 55), 75% of the fund will need to be taken over time as an unsecured income or be used to purchase a lifetime annuity. These
are both taxed as earned income at your marginal rate
3 assumes total taxable income is less than £100,000
4 if you are a 40% tax payer in retirement this figure will be £14,000
Assumptions:
• Small Companies Corporation Tax rate applies (20%)
• The additional £17,575 slice of salary is applied at the 40% rate of Income Tax and 2%
additional employee NIC
• An employer pension contribution of £20,000 will be tax deductible
• The tax treatment depends on the individual circumstance of each client and may be subject to
change in the future
Salary Dividend
Pension
Contribution
Pre-tax cost to Company £20,000 £20,000 £20,000
Paid as salary
Employer’s NI (13.8%)
£17,575
£2,425
Corporation Tax (20%) nil1
£4,000 nil1
Salary3
less Income Tax (40%)
less additional National Insurance (2%)
£17,575
£7,030
£351.50
Dividend distribution
less additional Income Tax due
£16,000
£3,600
Gross Contribution
Pension Commencement Lump Sum
Plus remaining fund
Assumed tax at 20% on income taken
£20,000
£5,000
£15,0002
£3,000
Benefit to the individual £10,193.50 £12,400 £17,0004

8. A SSAS can receive large pension contributions
up to £500k and receive Corporation Tax
relief in the current year by utilising a General
Unallocated Fund within the scheme
If a business has made large profits and
wishes to make a pension contribution for its
Directors, it can make a contribution of up to
£500,000 which will be allocated to a
General Unallocated Fund within the SSAS.
The company will receive £100k Corporation
Tax relief in the current year. The SSAS will
have £500k with which to make investments
from the contribution date.
The General Unallocated Fund is then
allocated to the Members fund over time in
lieu of future contributions for Members
within HMRC limits. This fund may be
invested and borrowed from as with any
other part of the fund.
Creating a Tax loss and rebate with
contributions
If the contributions exceed the profits of the
company in any year, they will create a loss,
which can be applied to the previous year’s
profits by resubmission of the CT600. This
would result in a Tax refund.
Note! There must be sufficient
reserves in place in previous year’s
accounts for this to apply. Certain
conditions must also be met, please
contact SSASCo for more information
In specie contributions
Contributions can be made either in cash or
in specie, which means that should either an
individual or a company wish to contribute a
commercial property into a scheme, they can
do so, subject to contribution limits.
Carried forward pension contribution
allowances
Contributions are limited by the annual
pension contribution allowance, which is
currently £40k per year. It is possible to carry
forward and claim unused allowances from
the previous three years, providing the
individual has been a Member of a registered
pension scheme for the period, although it is
not necessary to have made a contribution
during the period.
The allowance pre 2014 was £50k, which
means that an individual could have £150k
carry forward pension contribution allowance
less any pension contributions made in that
period.
The carry forward allowance does not all
have to be used in one year, so it is possible
for an individual to increase their
contributions above the annual allowance of
£40k over a number of years until the
allowance is fully utilised.
For example, if an individual has not made
any contributions for the past three years
their current carry forward allowance would
be:
Year 2011 2012 2013
Allowance £50k £50k £50k
Plus current year allowance £40k
= Total allowed contribution £190k

9. Because a SSAS is a Trust, its assets are
secured from creditors or any other threat under
Trust Law. This means, should a business
experience financial hardship, the retirement
fund would be safe.

10. 3b. Use of Property Tax reliefs
If a commercial business premises is owned
personally by the Directors or business
owners, receiving the rental income
personally from that commercial property
could create a higher personal Tax charge for
those business owners.
Using a SSAS to buy a commercial property
currently owned by the Directors or business
owners personally has multiple benefits:
If the SSAS wishes to purchase a
commercial property
A SSAS may purchase a commercial
property outright or with funding. Many
banks are happy to lend to a SSAS.
It is quite normal for Members to transfer
other existing pension funds into their SSAS
and then purchase a commercial building.
Note! If the commercial property is to
be used by a connected party to the
scheme once it is in the scheme, the
tenant must pay the market rate for
the property and will have to have a
formal lease in place.
There are other factors such as Capital Gains
Tax to be taken into account, please contact
SSASCo to discuss your circumstances.
If the business already owns the
commercial property
1. The SSAS can buy the commercial
property from the business which income
can then be used to draw on any credited
Directors loan account
2. The Business could make an in specie
contribution of the property as an
employer contribution
3. The SSAS can receive rent Tax free from
the company
4. The company will receive Corporation Tax
relief on that rent as it is an allowable
business expense
If the business owner owns the
commercial property personally
1. The property owners can put a property
into their limited company which will
create a credited Directors Loan Account
(DLA). This creates a Tax efficient
environment from which to draw income in
lieu of that DLA
2. The SSAS can buy the commercial
property from the business
3. The SSAS can receive rent Tax free from
the company
4. The company will receive Corporation Tax
relief on that rent as it is an allowable
business expense
Property contributed to the Scheme in
specie
A SSAS can receive a commercial property
in lieu of a pension contribution. This again
saves Corporation Tax to the value of the
commercial property, as it is seen as an in
specie contribution.
The commercial property may also be
contributed to the General Unallocated Fund
if the value is greater than the contribution
allowance.
Rent received by the scheme
The rent received by the pension scheme is
exempt from Income Tax; however, it is an
allowable expense for the company paying it.
There is no Capital Gain Tax on the resale of
the property from within the pension.
3. What a SSAS can do

11. Security of assets
Because a SSAS is a Trust, its assets are
secured from creditors or any other threat under
Trust Law. This means, should your business
experience financial hardship, your retirement
fund would be safe.
3d. All pensions in one scheme under your
control
It is possible to transfer any existing pensions
into a SSAS. Current returns on standard
Defined Contribution schemes are generally
low, and with the added costs of inflation plus
relatively high administration costs, the value of
many ‘standard’ pensions is actually reducing.
Transferring existing pensions into a SSAS
where costs are not dependent on the size of
the fund and where it is possible to invest and
achieve higher returns, is becoming increasingly
popular.
Note! Before organising any transfers
it is advisable to have all the pensions
professionally reviewed. Some pensions
still have very attractive benefits
packages and transferring those funds
may mean losing those benefits.
3e. A SSAS reduces pension
administration fees
Due to the collective nature of a SSAS, the fees
are usually less than other types of
arrangement. Because there are more
Members, the costs per Member are reduced,
particularly when all other existing pension
rights are transferred in to be managed under
one scheme.
3c. Loans and borrowing facilities
Loan to sponsoring employer
A SSAS is able to lend up to 50% of the fund
to the Member’s business. This facility is of-
ten utilised with a transfer into the SSAS from
other existing pension schemes.
So, in effect, it is possible to transfer Members’
current pensions into the SSAS and then
arrange a loan back to the business on a
secured basis, even if no contributions have
been made.
In the current business environment where it is
difficult to arrange bank funding, this may be a
huge benefit to businesses looking for working
capital.
Note! There are conditions to be met to
allow a loan to the sponsoring
company, please contact SSASCo to
discuss your circumstances.
Loan to unconnected party
The SSAS can lend up to 100% of the net
assets to an unconnected party on a secured
basis.
Note! There are conditions to be met to allow a
loan to an unconnected party, please contact
SSASCo to discuss your circumstances.
Borrowing
For the purpose of funding the property, the
scheme can borrow up to 50% of the net asset
value of the SSAS. The majority of banks are
happy to lend to registered pension schemes.
Advisers will need to
understand SSASs to be able
provide clients with a complete
picture of their options within
Auto Enrolment.

12. Auto Enrolment publications miss a key
point, which is the provision of a separate
pension fund for business owners within the
Auto Enrolment framework.
Auto Enrolment legislation treats all
employees the same, however, there are a
number of major differences between
business owners, Directors and their
employees:
• A Director or business owner will very rarely
transfer to another employer
• A Director or owner will probably wish to
make larger pension contributions than their
employees
• A business owner will want to have input
into how their pension fund is invested
It is because of these
differences that many
business owners and
Directors have
indicated they will opt
out of Auto Enrolment,
whilst the current opt
out rates for employees
are comparatively low
at about 8%.
SSASCo have created a unique product
“Enrolex” to satisfy the requirements of
business owners and their employees by
having two separate schemes running side
by side within the Auto Enrolment regulatory
framework using a middleware system.
This ensures compliance whilst providing the
Directors and business owners with a SSAS
with all the associated benefits, whilst the
employees have the benefit of an industry
standard scheme.
Enrolex is a unique structure which
encompasses a bespoke SSAS for business
owners combined with a master trust for
employees. The compliance element of both
schemes is managed by a unique
middleware system. This provides seamless
Auto Enrolment options for both business
owners and their employees, allowing
different investment options for both whilst
managing total compliance with the Auto
Enrolment legislation.
The Benefits of Enrolex
• Auto Enrolment compliance is handled
automatically by a proven middleware
solution
• Business owners have a separate
pension scheme to their employees and can
decide their level of contribution
• Comprehensive free service for employees
• Low cost set up and administration for
business owners
• Interlinks with current payroll system
• No separate software requirements
• End to end expert advice
4. Auto Enrolment solutions for Directors and Employees

13. Enrolex is unique - it provides two
pension schemes; one for business
owners and the other for
employees. The compliance element
for both schemes is coordinated and
managed by sophisticated middleware

14. A SSAS can make a wide range of
investments under the control of the
Trustees who are also Members resulting in
much greater control over investment than in
any other pension scheme.
Many business owners transfer low
performing “standard” pension funds into the
SSAS and then reinvest where they believe a
better return will be achieved.
The range of investments a SSAS pension
scheme can make is wide and varied:
• Bonds
• Unit Trusts
• Building Society and Bank Accounts
• Quoted Stocks and Shares
• Unquoted Stocks and Shares
• Commercial Property
• Unregulated Investments
• Gold
• Futures
• Holiday Homes (under certain circumstances)
• Intellectual property (under certain
circumstances)
Investments which are not allowed:
• Vintage Cars
• Yachts
• Wine
• Stamps
• Antiques
• Art
• Residential Property
• Tangible Moveable property within a
connected party business
• Plant and Machinery
Note! It is advisable for the Trustees
to consult an Independent Financial
Adviser and their pension
administrator before making any
Investment, as there are Tax penalties
for unauthorised investments.
5. Investments within a SSAS

15. A SSAS allows a business owner to take
advantage of the recently announced
flexible drawdown options, offering control
and flexibility in pension contributions and
investments as well as flexible exit options.
At the age of 55 a member can commence
drawdown from their pension fund. Currently
they can draw the first 25% of the fund Tax
free and, because of the recent changes in
pension legislation, they can take the
remainder of the cash as they wish and only
pay marginal rate Tax as and when they draw
it.
For example:
• If a Members fund holds £200k at age 55,
the available Tax free lump sum will be £50k
• If the other £150k is taken at £10k
per year, there will be no Tax on that £10k if
there is no other income payable
• If the Member chooses to take the entire
fund, a higher rate of Tax under the PAYE
scheme at marginal rates will be paid
As life changes occur, Members being in
control of their own scheme allows the
choice to make changes and adapt to new
circumstances.
If a SSAS owns a property, Members can still
receive rent even when they have retired.
It’s up to the Member! There are a number of
variables to discuss, please contact SSASCo
to discuss your clients particular
circumstances.
6. Retirement Options within a SSAS

16. This White Paper has been written for
Advisers: Accountants, Bookkeepers,
IFAs and Wealth Managers. Its
objective is to highlight how a SSAS
could benefit their clients.
By opening conversations about
retirement planning a host of other
subjects will undoubtedly be
discussed, in turn opening up further
opportunities to add value.
Benefits to Accountants
Business owners will turn to their A
ccountant for advice about Auto Enrolment.
Having information about the potential
options available and discussing retirement
planning with clients will bring a number of
benefits:
• Build a deeper relationship with the client
• Increase client retention
• Increase services provided to the client i.e.
payroll
• Prolong the relationship with the client after
retirement through drawdown
Benefits to IFAs
The development of a SSAS structure which
meets Auto Enrolment compliance
requirements increases the commercial
attractiveness of Auto Enrolment to the IFA:
• Building a closer relationship with the client
• Potential to advise on investments within
the SSAS
• Additional services to be provided to
business owners and their staff
• Developing commercial relationships
with Accountants
7. Summary
Advisers who help to
implement a tax efficient
Auto Enrolment solution
will enjoy Trusted Adviser
status with their clients.

17. To help Advisers to become equipped to
discuss SSASs with their clients, SSASCo has
developed a support package which includes;
• Regular SSAS updates
• Client friendly co-branded SSAS marketing
materials
• Technical helpline
• Client seminar programme
• Marketing support
• CPD accredited training
We also have a consultation fee reimbursement
scheme, where we will pay Advisers for
introduction to the client. Subject to a maximum
fee of £200 plus vat and the SSAS being placed
with SSASCo.
Our support package is only available to
registered affiliates. To register as an affiliate
we ask Advisers to sign a simple agreement
which formalises SSASCo’s commitments and
asks Advisers to agree to confidentiality around
SSASCo’s practices and product details.
“mechanics” of setting up the scheme
We work with our Affiliates closely in
collaboration; the usual process is as follows;
8. SSASco Advisers Support Package
Contact us today to register as an affiliate go to www.SSASCo.co.uk
To find out more about becoming a SSASCo affiliate please visit our website:
www.ssasco.co.uk
Email: info@ssasco.co.uk or call: 0845 862 2869
1.
2.
5.
4.
3.
6.
Affiliate meets with client to discuss
suitability of SSAS
Affiliate contacts SSASCo to discuss
case
SSASCo manage the agreed transactions,
liaising with Client and Affiliate
contact client to arrange the
“mechanics” of setting up the scheme
Affiliate presents proposed solution to
client If client wishes to proceed, SSASCo
Review periods are agreed