A SSAS is a Small Self-Administered Scheme.

It is a type of occupational pension scheme usually set up by a limited company for its directors or key employees.

Think of it as the company version of a SIPP — but with extra flexibility and powerful planning opportunities.

Core idea

A SSAS is a pension scheme that:

• Is created by the company
• Is run by the members (who act as trustees)
• Can invest in a wide range of assets
• Can be used as a strategic business planning tool

Most SSAS schemes have 1–6 members, typically directors of the business.

Key tax advantages

1) Corporation tax relief on contributions

Company contributions into the SSAS:

• Usually fully deductible for corporation tax
• No employer National Insurance
• No income tax on the director
• No dividend tax

This makes it a highly tax-efficient way to extract profits.

2) Tax-free investment growth

Inside the SSAS:

• No income tax on investment income
• No capital gains tax
• No tax on rental income

Just like a SIPP, it grows in a tax-free environment.

Major difference vs SIPP — loan back to the business

This is the standout feature.

A SSAS can lend money to the sponsoring company.

Up to 50% of the SSAS fund can be loaned back to the business.

This is huge.

Loan rules

The loan must:

• Be secured
• Charge commercial interest (minimum 1% above base rate)
• Be repaid within 5 years
• Be repaid in equal capital instalments

This allows a company to effectively access pension funding legally.

Common uses:

• Working capital
• Expansion
• Equipment purchases
• Property deposits

This feature alone often justifies a SSAS.

Commercial property planning

Like a SIPP, a SSAS can buy commercial property.

Typical structure:

• SSAS buys company premises
• Company pays rent to pension
• Rent is corporation tax deductible
• Rent grows tax free in pension
• Property removed from IHT estate

Very popular with owner-managed businesses.

Who typically uses a SSAS

Ideal for:

• Owner-managed companies
• Directors aged 40+
• Profitable businesses
• Companies wanting to buy premises
• Businesses needing funding but avoiding bank borrowing

SSAS vs SIPP (quick comparison)

SIPP
Individual pension
Simpler
No loan-back facility

SSAS
Company pension scheme
More flexible
Can lend to the business
More complex administration

Contribution limits

Same pension rules apply:

• £60,000 annual allowance
• Carry forward available
• 25% tax-free lump sum from retirement age

Commercial opportunity insight

SSAS planning is a premium advisory niche.

Typical SSAS setup and planning fees in the market:

• Setup: £2,500 – £5,000+
• Ongoing annual fees: £1,000 – £2,000+

It fits perfectly into profit extraction and long-term planning conversations.