How Much Corporation Tax Can a SSAS Save a Business?
The main goal of a SSAS is to grow your pension pot but what also comes with a SSAS are various tax savings. One of them is reduction of Corporation Tax.
For example, if a Company makes profits of £100,000 and they’re paying Corporation Tax at 25%, then they would be paying Corporation Tax of £25,000.
Now, let’s say a husband and wife are Members of a SSAS and they’re both Directors in the SSAS and the Company on their behalf was to put £50,000 each into their pension pot i.e. £100,000 in total, that would provide a saving of £25,000 against their Corporation Tax in the current tax year.
People often think of pensions as something that will benefit them at some point in the distant future. Well, a SSAS does do that but also offers tangible, immediate benefits for you and your Company and it could save you tens of thousands of pounds in Corporation Tax over the years.
