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SSAS Pension Fund issue

Help!

my problems don’t seem to end atm guys;

The director wants salary to be made from previous tax year when no PAYE was in place for the pension scheme in that tax year.

 

I have said no, for various reasons; penalties from HMRC if an attempt is made to pay backdated salary i.e jan-mar 17. EYUs can’t be used for actually paying salary for the first time 10months after the actual Year end after setting up as an employer... 

Im in a conflicting position; as an Accountant I know what they’re asking for is not correct and I’d recommend a payroll expert if they don’t agree with my view on this. Can you wake up one day 10months after tax year ends and say you want payroll for the last quarter when pension fund was not even setup as an employer and i doing this now having only been told by the client they had a SSAS fund is not been made aware til now and they wanted to draw a salary from it. Happy to setup as an employer now the pension fund is made of trustees.

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21st Jan 2018 13:23

On what basis can a pension fund pay a salary?
A SSAS pension fund is not a partnership - it is a trust with trustees.

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By Donna-
to Euan MacLennan
21st Jan 2018 13:33

this is a new area for me, they showed me p60 from old fund saying they were receiving salary (they're no longer part it as now with this new SSAS scheme) old one ended halfway in previous tax year. HMRC related documentation for VAT registration shows business: "pension funding" and business type: "partnership" - I would've put under organisation (same pool as charities, etc) but, saw this vat reg form and hmrc correspondence in paperwork provided and called HMRC who said register as an employer as an "Organisation".

Maybe P60 is total of pension withdrawn and not salary? They're saying it's a salary..

What do you make of this?

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By DJKL
to Donna-
21st Jan 2018 13:43

A pension fund can be vat registered if it say owns and leases "Opted to Tax" commercial property, but it itself is not a partnership.

It is of course possible to have types of pension funds in partnership, we have an LLP where two of the partners are FURBS (Funded Unapproved Retirement Benefit Schemes)

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By Donna-
to DJKL
21st Jan 2018 13:57

thank you! ...they completed that bit wrong.. difficult to understand but, thought it was because of the 3 trustees of the fund being in some kind of partnership (?). I have opted to tax office building recently purchased and to be leased for this same fund.

the director payroll bit now, is the issue as I've not come across back-dated payroll whether it be right/wrong...where no PAYE was in place to begin with...

argh.

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By DJKL
to Donna-
21st Jan 2018 14:04

Step one is surely to ascertain if fund may make pension payments to the parties in question, so individuals rights under scheme need considered, ages etc.

Certainly cannot see these being backdated, they are surely made when they are made?

What is position re tax free lump sums from scheme re the proposed payments?

What paperwork submitted to scheme by individuals seeking to draw benefits?

I have never dealt with an SAAS scheme that did not have professionals in place re its management (professional trustees) and in fact it is years since I have dealt with any pension schemes beyond SIPPs, so my first port of call would be taking a look at the trust deeds and talking with the parties.

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By Donna-
to DJKL
21st Jan 2018 14:09

thank you DJKL, I will request this information this week to ascertain what is required and what was agreed in regards this fund. Paying money out if backdated, I have said no so, I will make sure I know what needs to be done and any required payments in this tax year before it ends. Will revert back next week. Thank you for the detailed response.

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