Auto enrolment and SSAS


  • Auto enrolment is a government initiative to help people save through a pension scheme, making it compulsory for employers to automatically enrol their eligible employees into a pension scheme.


  • There are 5 elements:-
  • 1. Staging Date
  • 2. Eligible employees
  • 3. Calculating Employer contribution
  • 4. Concept of a “waiting period”/deferment
  • 5. Employer duties


  • Provide Retirement benefits to all the employees i.e., eligible, non-eligible and entitled.
  • Applies to company with at least 1 employee.


  • Contribution is made by both employer and employee in specified fixed ratio.
  • Employer gets the benefit of tax rebate on the pension amount.



  • Pension amount cannot be used in any way by the directors/employers or the employees.



  • No such loan or benefits exist.


  • The SSAS (Small Self-Administered Pension Scheme) is one of the pension schemes with exclusive qualities that make it an affective financial planning tool.


  • A great scheme for family business and small partnership companies. Main elements:-
  • 1. A Trust with all members as trustees.
  • 2. Sponsoring Employer.
  • 3. One independent trustee.



  • This scheme applies only to directors/ key staff and can be extend to their relatives irrespective of their employer.
  • Number of members is limited to 12.


  • Contribution is made by the member or the employer.


  • There is whole set of tax benefits attached to this scheme. For example – no income tax, no capital gain tax, no corporation tax. All subject to conditions.
  • The pension scheme allows you to borrow the 50% of SSAP fund.


  • Enables director to buy their own business assets, lend money to their own business as well as others.
  • Owners enjoy the SSAP loan back benefits.


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