Directors vs Shareholders Inside a SSAS?
SSAS does treat Directors and Shareholders differently and it is very important to understand this because we frequently get asked this question.
Directors in SSAS
A Director has a fiduciary position in the Company and therefore the Company may make contributions for a Director.
Shareholders in SSAS
In husband and wife companies, we often find that one is a Director of the Company and the other a shareholder. This has often been set up for Income Tax purposes.
However, it is not possible for the Company to make contributions to the SSAS on behalf of a shareholder. To enable the company to make contributions for a spouse who is a shareholder then they do need to be employed by the Company or become a Director. The Company can then make contributions for the spouse and benefit from attractive tax deductibility.
However, if that is not possible and the spouse is employed elsewhere and has PAYE earnings it can be possible for them to make personal contributions to the SSAS. We will be able to assess and discuss all the options based on the information supplied in the Fact Find form and subsequent conversations.
