After speaking with Paul at Retirement Capital, Jose and Maria consent for Paul to speak with their accountant. They have pension assets of £30,000 from other pension schemes and £40,000 in the business. They do not want to use all their operating cash to fund this expansion. The business is worth around £40,000, inclusive of equipment.
Paul at Retirement Capital and their accountant work together on a solution where Jose and Maria will consolidate their pension money together, which is worth £30,000. They will pay £23,000 as a pension contribution from their business to their SSAS. The £23,000 contribution earns them tax relief of £4370 in their business.