Contents 1. Introduction 2. Enrolex - The Product 3. Enrolex - The Process 4. Enrolex - The Benefits 5. Enrolex - Moving Forward 6. Summary
1. Introduction Auto Enrolment (AE) has probably been on your radar for quite a while but hasn t yet had a major impact. This is about to change as businesses with fewer than 30 employees start staging in 2015. The Pension Regulator (TPR) has already started sending notifications to these employers which will undoubtedly prompt them to start thinking about their AE solution, and looking to their Accountant to help them. This initial TPR letter is sent 12 months in advance of the staging date but does require the employer to notify them with main contact details for their AE provision, within the next three months which will prompt questions to your practice. As you will be aware, AE is compulsory for all UK companies (the only exception are sole traders and limited companies with only one director).
The graph below illustrates the volume of businesses staging over the next 3 years, by projecting twelve months forward you can see the volume of businesses that will be starting to make enquiries about their AE this year. Accountants and Auto Enrolment Due to the complexity of AE, and the impact it has on businesses, it is clear that the Accountant will be seen by business owners as the best person to help the business choose and implement a compliant scheme. In fact a recent survey suggested that 92% of small businesses are expecting their Accountant to provide the solution for them. Auto Enrolment will impact on Accountants in two main ways: 1. Your practice will receive a volume of telephone calls from both payroll and non-payroll clients 2. The majority of clients will expect you to be able to provide a solution for them To assist with both of these issues, we have developed Enrolex, a complete AE solution specifically designed to help Accountants and their clients with these challenges. Enrolex: Requires minimal input from the Accountant Has no requirement for additional software Has no requirement to choose a pension provider Has no requirement to be involved with clients employee communication Provides a simple solution for non payroll clients Offers proactive client communication support
Enrolex removes the majority of the tasks that other providers require you to perform. It s actually easier to explain what you do need to DO with Enrolex!
2. Enrolex - The Product Enrolex is an online solution that uses a Master Trust with pre-set scheme features including: Pension provider Pension trustees Postponement period Contribution levels Employee communications By adopting a pre set approach Enrolex can achieve an effective, fully compliant scheme with minimum effort from both employer and Accountant. The default pension fund is with Scottish Widows and uses their standard lifestyle fund. Importantly, compared to a number of other providers, this scheme does take transfers in. N.B Charges are deducted from the members personal retirement account Enrolex is simple and removes the requirement for small businesses to make complex decisions. It offers a standard pre-set scheme which enables automation of key processes and brings operational efficiencies. It is quick, easy and free. Other pre-set features include: HMRC Approved Master Trust Independent Trustees - PAN Governance LLP Retirement age 65, but can retire from age 55 Investment Managers - Scottish Widows Default is to apply a 3 month postponement period to align payroll and contributions Contributions are set at the statutory minimum e.g. To 30th Sept 2017 Member 1% Employer 1% 1st Oct 2017-30th Sept 2108 Member 3% Employer 2% From 1st Oct 2018 Member 5% Employer 3% Scheme charges are all within government price cap e.g. Active member fee dependent on qualifying earnings and stage of process ranging between.60p and 2.00 per month AMC (Administration management charge 0.4% per annum)
3. Enrolex - The Process Enrolex removes the majority of the tasks that other providers require you to perform. It s actually easier to explain what you do need to do with Enrolex! 1. Set up can be completed any time before staging date You ll need to complete an online registration form but we ll talk you through it over the phone 10 minutes 2. Pre staging two months before clients staging date The employer needs to set up a Direct Debit for contributions, but we ll talk them through it over the phone 10 minutes 3. Pre staging You ll need to upload the employee details in a CSV file. This is the probably the most time consuming part of the set up process but only needs to be done once and we ll provide a template for you to complete and talk you through it over the phone 10 minutes 4. Post staging You ll need to upload a payroll report to our system each time you run the payroll. We ll send back contribution details and instructions for any changes required to your next pay run 10 minutes
Set up - What Enrolex does Through our automated online process we manage the majority of the setup and implementation of the scheme as outlined below. Assess the workforce From the information received from the employer, Enrolex will assess the workforce placing each individual in one of the following categories: Eligible jobholders Non-eligible jobholders Entitled workers Enrolex monitors each employee every pay-run and amends their status accordingly, sending a report with any changes required. Communicate with employees Enrolex handles all communication with employees to ensure that there is no possibility of legal challenges relating to inducement further down the line. Employees also have access to a dedicated helpline for any queries they may have. Data management, advising the employer of contribution requirements Enrolex handles all data management and produces a report each pay-run to advise the employer, or their payroll provider, of the required contributions. Provide a pension scheme Enrolex is invested with Scottish Widows and uses their lifestyle fund. The client s contribution is paid by Direct Debit directly to Scottish Widows giving the client peace of mind about security. Scottish Widows have guaranteed that they will take all schemes that we submit to them. Record keeping and on-going compliance Once the scheme is set up, Enrolex manages all record keeping, compliance, and future employee communications. Enrolex is simple and removes the requirement for small businesses to make complex decisions. It offers a standard pre-set scheme which enables automation of key processes and brings operational efficiencies. It is quick, easy and free. N.B. There is no requirement for any additional payroll software.
4. Enrolex - The Benefits Enrolex is the best Auto Enrolment solution for Accountants. It s the easiest solution for you to implement! Enrolex is the simplest and most complete solution for you and your client. It requires less work and less input from you than any other solution. Client retention and longevity By providing your clients with a solution to their Auto Enrolment challenge you will undoubtedly increase client satisfaction, retention and referrals. Complete technical support Enrolex provides technical support via our telephone helpline for professional advisers. Client communication support Enrolex can help with your client communication including: Conducting your clients staging date analysis (we have an arrangement with The Pension Regulator to conduct bulk analysis) Template letters and emails to send to your clients Co-hosting webinars for your clients, introducing AE and the Enrolex solution Co-branded electronic marketing materials Non payroll clients With your non-payroll clients we can conduct remote meetings to facilitate the implementation process. This will help them and should save you a number of calls and questions. Conversely, not offering a solution could alienate clients. Simply referring them to Nest or one of the other DIY options will still cause them effort and a larger, more complex, admin burden which will be beyond a number of your clients comfort and competency levels. This will result in them being dissatisfied and seeking a new adviser who will help them
5. Enrolex - Moving Forward The Auto Enrolment compliant SSAS A SSAS can be added to the Master Trust arrangement; this will give business owners the option to have an additional scheme with more functionality to that of their employees. SSASs are flexible, trust based pension schemes regulated by HMRC and the Pensions Regulator (not the FCA). They are specifically designed for small businesses and offer more flexibility than any other pension scheme, including a SIPP. Scheme members are trustees of the scheme but there is also a corporate trustee working alongside the members to ensure compliance. A SSAS can: Accept transfers from any members existing schemes Make a wider range of investments than any other scheme Purchase and hold commercial property Borrow for the purchase of commercial property to a maximum of 50% of the value of the property* Purchase ordinary shares in the sponsoring employer to a maximum of 5%* Make a loan to the sponsoring employer of max 50% of the funds net assets, repayable over 5 years* *NB: conditions apply Other features include: Members do not have to be employees of the sponsoring company There is no requirement for the members to make regular contributions, or any contribution at all Contributions made by a members company on their behalf are an allowable expense for Corporation Tax as are rent payments by a company to the pension scheme for the use of a commercial building Because a SSAS is a Trust based scheme, all assets in the scheme are protected from creditors should the sponsoring company run into financial difficulties A SSAS is the perfect partner for the Master Trust as it provides business owners with a flexible solution which manages their AE compliance but offers them the benefits of a SSAS. www.ssasco.co.uk
6. Summary Enrolex is the most complete Auto Enrolment solution specifically designed to help Accountants and their clients to be fully compliant with the least amount of input. Enrolex: Quick, Easy and Free Contact us today to find out more www.enrolex.co.uk 0800 802 1291