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Case Study: Mr & Mrs Jones’ Family Bakery

Case Study: Mr & Mrs Jones’ Family Bakery

Case Study: Mr & Mrs Jones’ Family Bakery

Are you thinking about implementing a SSAS in your business and want to know more about how it could benefit you?

We’ve helped many business owners make the most of their future by putting a SSAS in place for their company. This case study will give you an idea of how a SSAS can work for a business and the financial rewards that can be generated.


Mr & Mrs Jones are both 40 years old and own a family bakery business. The business owns a commercial property that it purchased outright 2 years ago. The company makes an annual net profit of £70,000 after the owners take their salary, which is usually taken in dividend and put into various savings accounts for their retirement.

What did they do?

After reading about SSASs in a trade magazine, Mr Jones contacted his accountant to discuss how a SSAS could work for him. The accountant subsequently referred him to SSASCo, who, following an in-depth discussion and analysis of his needs, created a bespoke plan tailored to the specific needs of his business.

The plan

Mr & Mrs Jones set up a SSAS and transferred their commercial property into the scheme, paying a commercial rent of £8,000 for the property into the pension fund. They also decided to each make a £20,000 cash contribution into the scheme each year and to invest the pension fund in a relatively low risk product through their IFA.

What were the results?

The realistic financial projection for Mr & Mrs Jones’ SSAS pension scheme over 15 years was impressive.

With a SSAS, the couple will:

  • Contribute a total of £48k per annum
  • Produce a total fund of almost £1.3 million
  • Protect all the assets from any financial threat in the future
  • Have the flexibility and control to change the investment strategy in the future
  • Comply with their Auto Enrolment obligations
  • Protect their commercial property from Capital Gains Tax if and when they decide to sell
  • Create a robust source of funding should their business require it in the future

 How is all of this possible?

1 Maximizing contributions by making them from the company

Previously pension contributions were made from the dividend taken and the Jones’ therefore paid Corporation Tax and Dividend Tax on this amount. However, because contributions from a company into a SSAS on behalf of directors are an allowable expense, all of the Jones’ contributions now go into their pension fund and no tax is deducted.

2 Transferring the property into the pension

Because the pension now owns the commercial property, the business has to pay a market rent for use of it; this has the benefit of increasing the cash going into the pension pot, and the company will pay less Corporation Tax because rent is an allowable expense. In addition, the capital value of the property will be free of Capital Gains Tax as it is in the pension, and all assets in a pension grow in a tax-free environment.

3 Choosing a low risk investment option

SSASCo work closely with a number of IFAs that can provide investment advice. Mr & Mrs Jones discussed their needs with an IFA recommended by SSASCo and have chosen a low risk product that has produced in excess of 6% per annum over the past seven years and is predicted to continue at least this rate. Our projection includes this and also the benefit of this compounded over 15 years.

4 Being trustees of their own scheme

A SSAS is a trust based pension and has more investment options than any other scheme. Mr and Mrs Jones are both Members and Trustees of the Jones Bakery Pension and, as Trustees of the scheme, they decide how they invest the funds in the scheme. They have used the services of an IFA recommended by SSASCo to advise on the best investment for them at the present time and have scheduled an annual review so, should either their circumstances change, or should the investment stop performing as expected, they can easily change their investment because they are in control.

5 Have complied with their Auto Enrolment Obligations

Like many other business owners, Mr & Mrs Jones were unaware of the fact that they would have to comply with the new Auto Enrolment regulations to provide a pension scheme for their 6 employees. Through their unique Enrolex product, SSASCo have organised a no cost (other than contribution) solution for the Jones’ and taken care of all compliance and regulatory issues.

6 Protected their Assets

Because the SSAS is a trust, all assets in it are protected. This means that should the business run into financial difficulty, all assets in the fund would be safe from creditors and their retirement fund would still be safe.

7 Create a robust source of funding

With a SSAS the trustees can lend up to 50% of the available fund back to their business so, should they wish to expand their business, buy new commercial property or equipment, or free up some cash to help with a cash flow problem, they now have a secure source of funding. This is a far more attractive option than any other type of funding because a) you know the funding will be granted b) although you do have to pay interest, it is paid to yourself so the money is not lost.

The Future

Mr and Mrs Jones can now look forward to a comfortable retirement with confidence.

They will have access to ongoing support from SSASCo and an annual review with both SSASCo and their IFA to make any amendments necessary to keep their plan on track.


In this instance, a SSAS was by far the best option for Mr & Mrs Jones as it maximized their contributions, optimized their Tax situation, and brought a number of other benefits.

To find out if a SSAS is right for you, get in touch today. We are happy to review your circumstances and give you our thoughts on a no obligation basis. We’ll tell you if we think a SSAS could work for you (and also if we think it won’t), and we’re nice people to talk to.

Call 0845 862 2869, or email

Start building your future today.




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