We get asked a lot whether you can have more than one Company attached to the SSAS, to which the answer is yes, you can.
Should you have more than one Limited Company, you may set up the SSAS to your primary Company (where you’re generating the most profits) and then attach your additional companies, after the SSAS is set up, and make contributions from each of them.
Setting Up a SSAS Pension for Your Company
It’s important to understand that the application to set up a SSAS is typically made by one Company, (the sponsoring employer), which is why you add additional companies only once the SSAS has been set up. .
Choosing to set up the SSAS for the Company making the most profits is sensible because SSAS fees can be paid by that Company and with SSAS fees being a tax deductible expense in the same way accountancy fees are, it helps bring down the Company’s tax burden.
Making SSAS Contributions from Additional Companies
You can only make contributions to a SSAS from Limited Companies that have been added to the SSAS. If you would like to make contributions from additional Companies, they must be added after SSAS has been set up.
Additional companies need not be added immediately as there is no time limit as to when you can include them. Therefore, if you have an additional Limited Company but you would like to grow the Company before adding it to the SSAS, you can do so in your own time.
Once the SSAS has been approved by HMRC, we would draw up a ‘Deed of Association’ for each new Company you’d like to include.
Corporate SSAS Pension Contribution Limits
As you begin to make corporate contributions to the SSAS, the annual £60,000 per person contribution limit still applies across all the Companies.
Therefore, you cannot contribute more than £60,000 into the SSAS in any one fiscal year, excluding any potential carry-forward allowances. For example, if you have three companies attached to the SSAS, you’d need to ensure that contributions made from all three companies do not exceed £60,000.
Personal SSAS Pension Contribution Limits
You are still allowed to make personal contributions into the SSAS, but again, the £60,000 total still applies. If your income is over £200,000 you may not be able to make the full £60,000 contribution and the amount you’d be permitted to contribute would need to be calculated. Book a call for more.
If you want to make personal contributions into the SSAS, then we can arrange to have the SSAS set up to provide full tax relief at source.
Watch our video: How to Make SSAS Contributions
Speak to a Member of the One Crown Pensions Team
Book a call with a member of the One Crown Pensions team for further help and advice. We will be delighted to assist you.
To learn more about SSAS, visit our SSAS Video Hub for more information.
