City Trustees - part of Mattioli Woods



News and Media

18 October 2013

Lower SSAS errors by adding an independent trustee to your pension scheme

Since the implementation of removing the need of an independent professional trustee to manage a small self-administered scheme (SSAS) in April 2006, many pension pots have unfortunately been poorly managed, exposing savers to unnecessary costs and risks.

Many SSASs that have been purely managed by its members or trustees have run into trouble recently with scheme errors resulting in fines, loss of tax relief and in some cases closure by the HM Revenue & Customs (HMRC).

In comparison to its counterpart, the self-investment personal pension scheme (SIPP), SSASs have tended to gain an unfortunate amount of negative press.

However, this occupational pension scheme can be an ideal vehicle for executives, directors and owner managers who seek greater flexibility and control. Investments in a SSAS are free of capital gain tax and contributions also receive income tax relief.

Although by law, SSASs are not permitted to have an independent professional trustee, the option is still available.

John Glover, Business Development Manager, adds:

"SSASs are complex pension vehicles, and as such need to be carefully managed. Our proactive administration protects clients from the poor understanding of the rules".

"The rise in third party administrators, who avoid the regulatory responsibility yet claim to offer clients protection from the rules need to be avoided".

Using a third party administrator such as City Trustees will incur a fee, but investing in an independent professional trustee will provide client peace of mind. Each client of City Trustees is appointed a dedicated account manager to manage all aspects of scheme administration.

For owner-managers, a SSAS can be used to interact with a clients' business with great effect. For more information, visit our SSAS web page or contact us directly on 0116 240 8730.

 

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City Trustees is a trading name of Mattioli Woods plc. For news updates on the Group, please visit our central News & Media on the Group website.