SSAS members could face huge tax charges if their accounts are not in order, and advisers should make their clients aware of the risks involved of using a part-time administrator, warns Hazell Carr.
The SSAS arm of Xafinity says many scheme trustees are unaware of the tax rules, and are putting their scheme's assets at risk. For most SSAS operations, members act as trustees and take on the legal role of 'scheme administrator', which carries many reporting duties. However, HMRC has the power to levy a 55% tax charge on scheme assets if its rules are breached. Andy Bowsher, director of self-invested pensions at Hazell Carr, says advisers need to ensure their clients understand the risks involved in administering their own SSAS. Duties of scheme administrators include reporting im...
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