Many small business could be paying unnecessary pension costs on Small Self Administered Pension (SSAS) schemes.
According to accountants and business advisers, Old Mill, businesses that run SASS schemes may not be aware that they no longer need to have an independent trustee, which could be costing them dearly, as Steve Woodham, Pensions Manager at Old Mill explains.
“The change came in on A-Day (April 6 2006), but many companies are still not aware– if companies still running a SASS with independent trustee realised they no longer need one, they could save themselves a great deal of money,” said Steve.
He continues, "Members of every scheme do need to appoint a scheme administrator though, and this scheme administrator is responsible for fulfilling many important functions including registering the pension scheme with HMRC, reporting events relating to the scheme to HMRC, making returns to HMRC and providing information to scheme members."
Old Mill also warns that the past few years have seen a number of changes to pension legislation, and to avoid any tax penalties "it is essential that registered pension schemes comply with the new regulations and reporting requirements."
To make sure your business is complying with all the necessary legislation, get independent pension advice.
© Fair Investment Company Ltd