Auto Enrolment schemes for Business Owners
Although Auto Enrolment is primarily aimed at employees, the legislation also applies to business owners who now need to think about setting up a pension scheme for themselves as well as their employees.
Historically, business owners have not been inclined to set up a pension scheme for themselves because:
Funds could be utilised more effectively within the business
- Restrictive drawdown options at retirement
- Low annuity income levels
- They don’t want cash ‘locked away’ in a pension scheme
- Limited bank lending means cash needed to be accessible
However, recent changes in pension legislation mean that these reasons no longer apply and many business owners will now want to start providing for their future.
A standard Auto Enrolment scheme will not cater for the needs of the majority of business owners who will want a separate solution to their employees and will require more flexibility from their scheme.
To provide this flexibility we’ve created Enrolex Executive.
Enrolex Executive is a flexible pension scheme designed specifically for business owners. It’s based on a SSAS (a Small Self-Administered Scheme) which is the best pension arrangement for small businesses because it brings tax benefits, member control and the facility to grow funds in a tax free environment.
What you need to know about SSASs:
A SSAS can provide so many benefits to you as a business owner, which is why we use SSASs as part of our Enrolex Executive solution.
Not only does having a SSAS help to reduce your corporation tax for every year that a contribution is made, but you can also receive large pension contributions (up to £500k) and carried forward pension contribution allowances up to £150k per Director.
The SSAS can be used to lend to the business, to buy business premises, to pay rent tax free on commercial property and holds all of your existing pension funds in one place under personal control. There’s less pension administration fees, and the opportunity for more flexible HMRC approved investments than with other schemes – and, members can access 100% of the fund from age 55.
More flexibility, more control and better rewards for your business – just some of the ways you can benefit from a SSAS pension scheme.