Contents

1. The Auto Enrolment Challenge facing Accountants

2. The Answer

3. The Benefits

4. Considerations for the practice

5. Enrolex in brief

6. The Process

7. Enrolex: In Summary

8. Fees

Auto Enrolment has not yet had a significant impact on Accountancy practices.

This is about to change as businesses with fewer than 30 employees start staging in 2015.

The Challenge facing Accountants:

1. Clients expect their Accountant to provide advice on an AE solution

2. The majority of Accountants don’t want to be involved in setting up pension schemes and have restrictions on the advice they can give

3. The Pension Regulator has already started sending letters to employers promoting them to start thinking about their AE provision and as a result clients have started contacting their Accountant for help and advice, causing disruption to normal practice operation and resources

4. If they don’t specify an AE solution for their clients, Accountants will have to operate multiple different pension systems

5. The client bank set up phase is relatively short and requires a fair amount of resource which brings a recruitment and training HR challenge

The Auto Enrolment Challenge facing Accountants

Volume of Businesses StagingThe graph below illustrates the volume of businesses staging over the next 3 years. By projecting twelve months backwards we can see the volume of businesses enquiring about their AE this year will be huge!

Penalties

The Pension Regulator has made it clear that they will impose penalties for non-compliance and have already issued a large number of fines. These fines are not unsubstantial, starting at an immediate £400 and then escalating on a daily basis up to an eye watering maximum of £10,000 per day depending on the size of the employer.

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staging dates

The Answer? Enrolex!

1. Client communication, scheme setup and implementation

2. Choose a robust AE scheme

3. Ongoing AE management

The Enrolex solution has 3 components:

1. A unique communication and implementation system involving our team of advisers who communicate and interface with your clients to achieve scheme set up

2. A robust, fully compliant scheme based on a master trust with pre-set features

3. A simple, automated process which integrates with your current payroll processes to manage on-going

communications, contributions and payroll

The AE Challenge

The Benefits Considerations for the Accountancy Practice

• How much input does the practice want to have in the set-up and

management of client’s AE schemes?

• Does the practice want to be involved in communicating with clients about AE?

• What resource will the practice need to cope with the challenge of AE and how will the costs of any additional resource be covered?

• What fees should the practice charge clients for scheme set up and

on-going management?

Enrolex is the only AE solution specifically designed to address these challenges and offers the flexibility to enable Accountancy practices to proactively decide how much involvement they want to have in providing their clients with an AE solution, and how much they want to charge clients for this additional support.

• Enrolex removes the need for extra practice resource. There is no requirement to recruit or train staff to deal with the time consuming process of scheme set up and no risk of being left with excess resource when the set up phase is complete

• Enrolex handles all client communication, after an initial introduction from you

• The Enrolex team arrange online meetings with your clients to talk them through scheme set up, making it easy for the client, avoiding costly mistakes and giving good client

experience

• Enrolex manages your client base ensuring all clients that wish to, have a scheme in place well before their staging date

N.B. Non-responsive clients will receive notification by recorded post of their obligations and potential penalties

• Enrolex’s robust processes dramatically reduce the potential for mistakes and omissions thus reducing the potential for fines and penalties

• Enrolex creates a profit centre for the practice. Fees are paid up front by the client directly to Enrolex and the Accountant receives a pay away the following month

Enrolex in brief

• Retirement age 65 but can retire from age 55

• Investment Managers - Scottish Widows

• Funds available include the Default Fund plus 4 other options

• Pre Set Scheme Features include earnings definition

• Scheme charges are all within government “price cap”

• Active member fee is dependent on qualifying earnings and stage of process ranging between 60p and £2.00 per month

• Administration and investment management charge (AMC) 0.4% per annum

N.B All charges are deducted from the members personal retirement account

Because most SMEs simply want a basic, compliant AE scheme, Enrolex has been designed to remove the requirement for them to make any complicated decisions.

Enrolex offers an effective, fully compliant scheme with minimum effort required by both Accountant and employer.

The default pension fund is with Scottish Widows and uses standard funds which are selected to meet the needs of the vast majority of employees.

Importantly, compared to a number of other providers, this scheme does take transfers in and also allows transfers out when employees leave.

Other scheme features include:

• Pension provider Scottish Widows

• Statutory minimum contributions

• 3 months postponement as default

• Allows transfers in

• Allows transfers out when employees leave

• HMRC Approved Master Trust

• Independent Trustees - PAN Governance LLP

The Enrolex Process

N.B. If more than one signature is required, a physical mandate will be posted to the client for signature.

Stage 4: Upload Employee DataAlmost there! This is the final stage in the set up process. Employee details are uploaded to the Enrolex system from a report produced by the payroll system. Our software works with all UK software packages. Enrolex advisers will talk you through this process over the phone. Ifclients run their own payroll we’ll talk to them direct.

Stage 5: Postponement The Enrolex system automatically postpones staging for 3 months.

Stage 6: Staging

Enrolex will:

1. Assess the workforce to determine if they are to be included in the scheme

2. Contact employees to inform them about the scheme and their options

3. Offer employees access to a dedicated helpline

Stage 7: Contributions BeginPayroll data is uploaded to the system via a CSV file.

Enrolex advisers can talk you through this process over the phone.

System sends Pension report to Scottish Widows who collect contributions by Direct Debit.

Stage 1: Client CommunicationWe’d recommend a pro-active strategy with Enrolex contacting your clients, following an introduction from you, to inform them of their responsibilities and options. This will help manage the flow of enquiries and minimise disruption to the practice.

Enrolex can help by:

• Analysing the staging dates of all your clients

• Contacting clients to tell them what they need to do, and when

• Organising online presentations for clients well before their staging date

• Ensuring clients meet their responsibilities and avoid fines for late set up

• Taking payment up front by credit card and removing any delay in

practice income

Stage 2: Sign-Up The client completes a simple online form which takes no more than 10 minutes. This can be done at any time in advance of the client’s staging date, reducing the risk of fines and last minute bottlenecks.

Enrolex advisers guide the client through the form in a live online meeting. In most circumstances the adviser can pre-populate many of the fields before the meeting to speed up the process.

Stage 3: Pre-StagingThe client will receive an email notification eight weeks before staging prompting them to take the next step, submitting their Direct Debit details online. Enrolex advisers guide the client through the form in a live online meeting. In most circumstances the adviser can pre-populate many of the fields before the meeting to speed up the process.

7. No requirement for additional payroll software Enrolex works with all known UK payroll software packages

8. Reduced impact on your practice By being proactive and contacting clients in advance, Enrolex can vastly reduce the number of AE related enquiries

9. Access to free advice and support Enrolex offers Accountants a free advice line for any client queries

To find out more about how Enrolex can help you, your practice and your clients contact us today.

info@enrolex.co.uk0800 802 1291

1. Ease of implementation Enrolex is fully automated and can manage the entire process from start to finish

2. You set the fees You know your clients and decide how you want to charge them

3. Removal of risk Enrolex reduces the risk that a client will incur financial penalties for non-compliance and seek to pass these onto you

4. You decide how much or how little you want to do Our modular fee structure allows you to work on the basis that best suits you and the available resource within your practice

5. A robust, reliable scheme The scheme is designed with pre-set features that have been carefully selected apply to the majority of SMEs

6. No risk of coercion claims Because we provide an independent source of advice for employees there can be no future claim that employees were coerced into either joining or opting out of the scheme

Enrolex - In Summary

Fees

Enrolex is competitively priced for clients and creates a profit centre for the practice.

Our fee structure means that it makes commercial sense for you to allow us to do the work for you.

It also means that both your payroll and non-payroll clients will enjoy the best value for money AE solution available.

Contact us today

www.enrolex.co.uk info@enrolex.co.uk0800 802 1291