Fred has around £100,000 built up as cash reserves in his business and needs to keep operating cash of £30,000. He has taxable profits in his business each year of around £60,000.
Fred sets up a SSAS with Retirement Capital, who consult with him and his accountant on ensuring it is the right fit for his taxation and business requirements.
Fred contributes £50,000 from his plumbing business, which means that his company tax bill will reduce from £9500 to £1900 for the year (19% corporation tax rate for small business).
Fred now has £50,000 in his pension scheme bank account. Fred has a pension from a previous pension scheme of £50,000 and after taking regulated financial advice transfers this money to the SSAS. There is now £100,000 in his pension bank account.