What is a SSAS and how do they work?
A Small Self Administered Scheme (SSAS) is a type of workplace pension that can be independently managed by a company for 11 members or less.
With a SSAS, business owners can pay into the scheme from their business, and members can then decide how the scheme’s funds are invested. This gives them greater flexibility, and allows them to use their pension fund to help develop the business.
Many entrepreneurs are attracted to SSASs because, as long as certain conditions are met, funds paid into the scheme can be lent back to the business. Unlike any other scheme, any contribution a business makes to a SSAS is an allowable expense to be charged against the profits, thereby lowering the corporation tax liability.
A SSAS can also lend money to third parties. This can be a particularly useful way of investing in residential property schemes through an approved investment such as a property bond.