SSAS ESTABLISHMENT – 10 STEPS
If you are looking to establish a SSAS – Here are the Steps.
Plus all the documents you’ll need.
COVID 19 Update: Please scan and email all documents as well as sending by post – we will action the emails while waiting for originals to be made available to us. Thank you!
Don’t forget to download and read our FREE Guide to SSAS and Tax Planning
(At no time will we ever give advice on investments or have access to your SSAS Bank account. We will not introduce you to anyone with investments available – If you need investment advice we suggest you speak to an IFA or Property Expert)
The first step with all our clients is to have a telephone consultation so we can find out more about your specific scenario and make sure you are getting the right advice. This step is the most important.
Before you call us – the following FREE Guide to SSAS and Tax Planning might spark some thoughts:
Call our Technical Director Paul Stewart on 07786 396722 to get the wheels in motion.
If you want to book a call back – then simply click here and select a time that works for you!
The next step will be for the Sponsoring Employer to have a Board Meeting and create a formal ‘Minute’ which is signed by ALL the Directors. The ‘Minute’ should record the date of the meeting, who was present and where the meeting was held (it can be ZOOM!) – The ‘AGREEMENT MADE” section of this Minute will need to contain something like this…”the Directors have discussed retirement planning and have jointly agreed to establish a Small Self Administered Scheme (SSAS) called the “XYZ SSAS”. The XYZ SSAS establishment will be carried out by Segmented Solutions Limited”. Board Minute will also confirm that the Directors are happy to be bound by the Segmented Solutions Fee Schedule, and the timing of the payments.
Please note that the establishment costs for a SSAS are: £1,200 + VAT = £1,440 and this payment falls due when we submit the SSAS to HMRC (or within 7 days at the latest).
If your company does not have this money in it’s Bank Account before the process begins, please hold back until it has the cleared funds ready to settle the invoice on delivery – As we do make an additional charge for chasing non-payment (and late payments). Sadly we have to add this note, as we have been in the situation more than once this year, where the SSAS Establishment process has been completed, and everything submitted to HMRC – THEN we were told that the funds were not available. Our late payment charges are an additional £200 + VAT.
If you want to download an example Board Minute – click here
In order to complete this step, the Directors will need to have downloaded and read the following document:
In order for the SSAS to be submitted to HMRC for Approval, we will need to complete details of the ‘Sponsoring Employer’ and the ‘Members/Trustees’ of the Scheme, so the next 2 forms that needs to be completed will be the ‘Sponsoring Employer & Member Application Forms’ – with the individual Personal ID verified for each Member. We have a guide to ID Verification – and ask that all Members have downloaded and read this. (to get the Verification right first time!)
In order to complete this step, each Member of the SSAS will need to have downloaded and completed/read the following documents:
(Each of the Application Forms above can be completed online. Once completed you can download and save/print the forms for posting and signing. Scans of Signed documents can be used to get the wheels in motion, but we will not submit an Application to HMRC until we receive the posted copies)
Once we receive the Board Minute, the Sponsoring Employer Application, All Member’s Applications and Verified ID we will create your Establishing Deed and send that to you for signing and witnessing.
Once we receive your fully signed and Witnessed ‘SSAS Establishing Deed’ we will log into the HMRC Pensions Administration system and use our Scheme Administrator ID to establish your NEW SSAS. It is at this point that we will also send out our Establishment Fee Invoice for payment. This will be for a sum of £1,200 + VAT and will be payable by the Sponsoring Employer – as per our Fee Schedule.
HMRC will process this new SSAS Application and ask us questions where appropriate. If required we will deal with all questions and pass your answers onto HMRC. This is a normal part of the process as HMRC have seen a number of SSAS Applications being posted purely in order to facilitate pensions liberation or to sell dubious investments. This is the step where we all have to simply wait and be patient!
Once your SSAS has been issued with its PSTR Number by HMRC, we will forward the formal notification to you. At this point your SSAS has been ‘established’ – Congratulations!
The next step will be for the SSAS to open a Bank Account – so that funds can be added to the Scheme (either by way of Sponsoring Employer Contribution, or Transfer in from a SIPP or previous Employment). When you establish your SSAS, your Banking will be with Metro Bank who have a specialist SSAS Unit. We will hand hold you through the Application process as part of our ‘SSAS establishment’ process.
Because of the issues with SSAS’s being misused in the past, it is not only HMRC who have added layers to their establishment questions, the Banks have also been dragged into the whole ‘pensions liberation’ problem. Many Banks will therefore not open accounts for your new SSAS as they have ‘withdrawn’ from that sector of the market. Hence our relationship with Metro is so important to the process.
You are under no obligation to use them, but it will certainly be easier – especially as at this point your SSAS will have Segmented Solutions as the Scheme Administrator, using our HMRC Administrator ID.
Once you have a SSAS Bank Account open, your SSAS will be ready to receive funds and start investing. It is at this point that you will want to take over full Administration control of your own SSAS – so the next step is to remove Segmented Solutions Ltd as the ‘Scheme Administrator’ and appoint one of the Members as the Scheme Administrator.
This will require them to use a new Government Gateway and answer various questions online. HMRC will then process this and send them a formal ‘Pension Scheme Administrator ID’.
Part of that process is to advise HMRC that you will be using Segmented Solutions Limited as your Scheme Practitioners. Which is a technical support role to give guidance to the ‘NEW’ Scheme Administrator who will need to make sure that none of the HMRC or Pension Schemes Rules are broken. Making mistakes can result in HMRC applying an ‘Unauthorised Payment’ charge which can be as high as 55% of the money that has moved incorrectly. Even more reason to make sure that everything is always done properly.
In order to complete this step, the Sponsoring Employer will need to select who will be the ‘Administrator’ and then have them download and complete/read the following document – which explains how to become the Scheme Administrator.
When you have received your Scheme Administrator ID – You should send that to us so we can log into the HMRC System and ‘invite’ you to become the Administrator. You will then receive this ‘invite’ and can log into your Administration Gateway and ‘accept’ the invite. We will then resign as Administrators, leaving you as Administrator in your own right.
HMRC will write to you after you have been appointed and ask for confirmation that you are a ‘fit and proper’ person or have added the services of a Scheme Practitioner. This is a normal part of the process, and will require you to sign a letter confirming acceptance of the Administrator Role (which we will email to you). In addition you will need to send HMRC the signed Practitioner Deed (below) – which we will provide for you as we need to sign it too.
As your Practitioners we will be responsible for reporting to HMRC annually – to cover events such as taking benefits and to keep HMRC informed about the asset values within the SSAS.
The final document required is the Practitioner Appointment Deed – which once completed and signed will formally engage us – giving you as Administrator permission to ask HMRC to add us as your Practitioners.