SSAS Pensions and Construction and Manufacturing
If you’re in construction and manufacturing, a SSAS Pension can be a powerful tool to grow your business and help you save for a comfortable retirement.
What is a SSAS Pension?
A SSAS (Small, Self-Administered Scheme) is a pension scheme for Directors of Trading Limited Companies. It is the only pension scheme that allows you to add multiple members (up to 11, in fact) and pool funds to purchase assets you couldn’t afford on your own.
Typically, what we see from those who are in construction and manufacturing is they will add their spouse/partner and children if they’re over the age of 18. In doing so, they create an intergenerational wealth fund that can serve them in their retirement and be passed down to their beneficiaries upon their death.
The Benefits of SSAS Pensions for Construction and Manufacturing Directors
There are numerous benefits to enjoy with a SSAS pension. However, there are three significant advantages that are particularly beneficial to Directors of construction and manufacturing companies. These are:
Corporation Tax Savings: SSAS is free from corporation tax. So, if you were to make the maximum contribution of £60,000 to your SSAS, you would see up to £15,000 in corporation tax savings at the end of the tax year. That is significant. This kind of saving can make a big difference to your total SSAS fund.
What’s more, if you have a spouse/partner who is also a Director of the Limited Company and they make the same contribution of £60,000 into the SSAS, you would receive a total corporation tax saving of up to £30,000. Why pay corporation tax when you can move your pension fund into a SSAS and save it instead?
Watch: How Does a SSAS Reduce Corporation Tax?
Commercial Property Purchase: the crown jewel of SSAS pensions for so many in construction and manufacturing is the fact you can purchase commercial property with a SSAS. This is huge.
There will be many in construction and manufacturing who have commercial property they trade from, such as: factories, warehouses, garages, and storage facilities (to name a few). If you own commercial property, consider moving the property into SSAS.
More so if you can purchase the commercial property and have your Company pay rent into the SSAS. Rent paid into a SSAS is tax deductible, providing you with a steady income at retirement.
Invest to Grow Your Fund: as you make contributions to the SSAS and rent is being paid in, the value of the SSAS continues to grow tax free. This is a good time to consider investments. Our sister Company, One Crown Investments, offers SSAS permissible investment opportunities.
Open a SSAS with One Crown Pensions
If you like the sound of a SSAS and you’d like to explore opening a SSAS for your construction and manufacturing business, book a call with the One Crown Pensions SSAS provider team. We’d be happy to answer your questions.
To learn more about SSAS and how it could benefit your business, check out the free resources on our SSAS Video Hub. We’re here to help make SSAS simple.
