Often, when clients approach us they are looking to work out what’s best for their Company. Their Company could have been in a state of dormancy for a couple of months, maybe even a couple of years, or their Company could be something they’ve only recently established and are keen to use SSAS as a launching pad for their plans.
What we would normally say in this particular case is that we go by what HMRC recommends. HMRC requires companies to have been actively trading for quite a while. We would suggest at least 6 months of active trading.
We’d usually ask for a full set of accounts where possible. Short of that, if the Company hasn’t yet filed accounts, HMRC typically wants to see at least 6 months worth of management accounts, showing a good level of activity, with a covering note from your accountant. This gives your application the best chance of going through if your Company is around six months old or has been dormant for a period.
If your Company has previously been dormant, it’s vital to update Companies House to show the Company as actively trading. All the information must be correct to ensure applications can be processed without delay.
It is also important to know that SSAS can be opened by both a Trading Company and an Investment Company.
For more, book a call with a member of our team to discuss your Company set up.
