An employer contribution is a payment made by a sponsoring employer into the SSAS on behalf of one or more of its employees who are members of the Scheme.

This payment is usually made gross of tax, and the company may be able to claim tax relief on the contribution, subject to certain conditions being met (see below).

Who Can Make an Employer Contribution?

Only a sponsoring employer of the Scheme — i.e. a company formally registered as such in the Scheme’s trust deed — may make employer contributions.

If your business is not yet listed as a sponsoring employer, please contact your Scheme Administrator before making any payments.

What Is the Annual Allowance?

Employer contributions, when combined with any personal contributions and other pension accruals, must be assessed against the relevant Annual Allowance for the tax year.

The standard Annual Allowance is currently £60,000, though this may be reduced (tapered) for higher earners or if the member has already flexibly accessed pension benefits (Money Purchase Annual Allowance of £10,000 may apply).

Please consult your accountant or financial adviser to confirm available allowance before making a contribution.

Contribution Limits and Considerations

• Contributions must be wholly and exclusively for the purposes of the business to qualify for corporation tax relief
• Contributions must be within the Scheme’s bank limits and investment strategy
• The SSAS must not be used to make contributions intended for non-members, or where it would breach HMRC contribution rules
• Any contributions made in excess of a member’s Annual Allowance may result in a tax charge

Making the Payment

Contributions should be paid by bank transfer from the employer’s business account to the Scheme’s designated bank account. Details will be provided by Holtram TLPI.

The payment should be clearly referenced with:

• The name of the Scheme
• The name(s) of the intended Member(s)
• The tax year the contribution is to be applied to

Notifying Holtram TLPI

Please submit the Employer Contribution Form at the same time as the payment is made. The form must confirm:

• The exact amount being contributed
• Which member(s) the contribution relates to
• The intended allocation of the contribution (if more than one member is included)
• The date of payment

We cannot allocate a contribution to a member or report it to HMRC unless we receive this completed form.

Will HMRC Be Notified?

Yes — Holtram TLPI will report employer contributions as part of the Scheme’s annual Event Reporting obligations.

The member will also need to declare contributions when completing their Self-Assessment tax return, where applicable.

Additional Notes

• Backdating contributions is not permitted — the contribution date is based on the date funds are received into the Scheme’s bank account.
• Contributions must not be made in lieu of salary or as a disguised form of remuneration.
• If you intend to make a large one-off contribution, you may wish to seek professional tax advice before doing so.