Small Self-Administered Scheme
Funding a SSAS
The employer and the members may contribute to the scheme. Rowanmoor Pensions' actuarial department can provide advice on the level of contribution necessary to fund for specific pension and tax-free lump sum benefits.
Member contributions
There is no limit to member contributions but tax relief will only be granted on contributions up to 100% of earnings in any tax year, up to the current annual allowance.
Employer contributions
Employer contributions are similarly unlimited and will receive tax relief in the year they are made provided they are wholly and exclusively for the purposes of the employer's trade. In addition, tax relief on the employer's total contributions to pensions will be spread if they are over £500,000 and constitute an increase of 210% or more over the previous year's contributions. The employer's accountant should advise on these aspects.
If the total of the employer's contribution for a particular member plus the member's personal contribution exceeds the annual allowance then the member will have to pay 40% income tax on the excess. This additional tax does not apply in the year in which a member takes their full benefit entitlement from the scheme (known as full crystallisation).
This information relates to the Rowanmoor Pensions SSAS.