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About Argentis Financial Planning and Wealth Management Business Independent and whole of market advice Argentis has Chartered Status – Chartered firms must ensure staff members acquire and retain the necessary knowledge and skills to deliver the highest quality advice Offices – Canterbury, London, Salisbury & Cobham 20 highly qualified advisers 2

Auto-Enrolment The process of automatically enrolling employees into a qualifying workplace pension or similar scheme has begun. The largest UK Employers are now past their staging dates having auto enrolled all non pension scheme workers. SME’s to auto enrol over the next 12 to 18 months. 3

Auto-Enrolment Auto Enrolment is less about pensions and more about business planning, processes and systems Planning ahead is essential If you have less than 6 months until staging and have not started planning immediate action is required 4

What will employers have to do? Employers will be required by law to: Set up & register a suitable pension scheme. Provide Pension/Auto-Enrolment information to employees. Enrol all eligible employees into a qualifying scheme. Confirm all relevant steps taken to The Pensions Regulator. Pay contributions for all eligible employees, unless they choose to opt-out of the scheme. 5

When will this affect employers? Every employer has been allocated a ‘Staging Date’, when they must comply with the new legislation. The key Staging Dates have been amended slightly with a delay for employers with less than 50 workers. You can find your staging date via Employer PAYE Size (April 2012)Staging Date 350 to January to February to April to May to 8901 July August October November January to 5701 March to 5301 April

7 PAYE scheme size or referenceStaging datePAYE scheme size or reference Staging date Less than 30 with PAYE no. 92, A1-A9, B1-B9, AA-AZ, BA-BW, M1-M9, MA-MZ, Z1-Z9, ZA-ZZ, 0A-0Z, 1A-1Z or 2A-2Z 01-Jun-15Less than 30 with PAYE no , 7A-7Z, O1-O9 or OA-OZ01-Oct-16 Less than 30 with PAYE reference number BX01-Jul-15 Less than 30 with PAYE no , 8A-8Z, Q1-Q9, R1-R9, S1-S9, T1-T9, QA-QZ, RA-RZ, SA-SZ or TA-TZ 01-Nov Aug-15 Less than 30 with PAYE no , 9A-9Z, U1-U9, V1-V9, W1-W9, UA-UZ, VA- VZ or WA-WZ 01-Jan-17 Less than 30 with PAYE reference number BY01-Sep-15Less than 30 with PAYE no , X1-X9, Y1-Y9, XA-XZ or YA-YZ01-Feb Oct-15Less than 30 with PAYE no. P1-P9 or PA-PZ01-Mar-17 Less than 30 with PAYE reference number BZ01-Nov-15Less than 30 with PAYE no , Apr-17 Less than 30 with PAYE no , C1-C9, D1-D9, CA-CZ or DA-DZ01-Jan-16Less than 30 unless otherwise described01-Apr-17 Less than 30 with PAYE no , E1-E9 or EA-EZ01-Feb-16Employer who does not have a PAYE scheme01-Apr-17 Less than 30 with PAYE no. 01, 08-11, F1-F9, G1-G9, FA-FZ or GA-GZ01-Mar-16 New employer (PAYE income first payable between 1 April 2012 and 31 March 2013) 01-May-17 Less than 30 with PAYE no , 3A-3Z, H1-H9 or HA-HZ01-Apr-16 New employer (PAYE income first payable between 1 April 2013 and 31 March 2014) 01-Jul-17 Less than 30 with PAYE no. I1-I9 or IA-IZ01-May-16 New employer (PAYE income first payable between 1 April 2014 and 31 March 2015) 01-Aug-17 Less than 30 with PAYE no , 4A-4Z, J1-J9 or JA-JZ01-Jun-16 New employer (PAYE income first payable between 1 April 2015 and 31 December 2015) 01-Oct-17 Less than 30 with PAYE no , 5A-5Z, K1-K9 or KA-KZ01-Jul-16 New employer (PAYE income first payable between 1 January 2016 and 30 September 2016) 01-Nov-17 Less than 30 with PAYE no , 6A-6Z, L1-L9 or LA-LZ01-Aug-16 New employer (PAYE income first payable between 1 October 2016 and 30 June 2017) 01-Jan-18 Less than 30 with PAYE no. N1-N9 or NA-NZ01-Sep-16 New employer (PAYE income first payable between 1 July 2017 and 30 September 2017) 01-Feb-18 Staging dates cont.

Capacity Issues? 8

Auto-Enrolment: The First Steps Assess your workforce (working or ordinarily working in the UK). (HR/Legal ) Argentis can help Determine what contribution basis will be used. (Finance/HR) Argentis can help Determine what qualifying pension scheme(s) will be used. (Finance/HR/Payroll) Argentis can help Establish the auto-enrolment process. (HR/Legal/Payroll/Finance) Argentis can help 9

Assess the workforce Earnings SPASPA-74 Under £5,772 Entitled worker (£481 pm) £5,772 to £10,000 Non-eligible jobholder (£481 to £833 pm) Over £10,000 Non-Eligible Jobholder Eligible jobholder Non-Eligible Jobholder (over £833pm) Auto Enrol?Can Opt-in/Join? Employer Contribution Eligible jobholders Non-Eligible jobholders  Entitled Workers  10

How much will this cost? The minimum contributions paid to a qualifying scheme is being phased in as follows: Staging Date September 2017 October 2017 to September 2018 October 2018 onwards Total Minimum Contribution 2%5%8% Employer Minimum Contribution 1%2%3% Employee Contribution1%3%5% The minimum contributions are a % of band earnings between £5,772 and £41,865 (known as, ‘Qualifying Earnings’) for

TIER ONE, TWO & THREE CAN BE PHASED 12 Staging Date to September 2017 October 2017 to September 2018 October 2018 onwards Qualifying Earnings £5,772-£41,865 1% employer 1% employee 2% employer 3% employee 3% employer 5% employee Tier 1 – basic salary 2% employer 1% employee 3% employer 3% employee 4% employer 5% employee Tier 2 – basic salary (85% rule) 1% employer 1% employee 2% employer 3% employee 3% employer 5% employee Tier 3 – total earnings1% employer 1% employee 2% employer 3% employee 3% employer 4% employee

Postponement of Auto Enrolment? Postponement enables employers to delay Auto Enrolling some or all eligible employees by up to 3 months. So if the Staging Date is 1 April 2015, Postponement can be any length of time up until 1 July Postponement can help employers manage short-term contract or temporary staff and those that have a ‘spike’ in earnings, or, to align with payroll processes. Simplicity is often the best strategy, but you can have different dates for different workers. All you need to do is send a postponement notice to each individual within 6 weeks of staging (or joining), ensuring that all of the relevant information is included. 13

What must employers not do? Offer Advice Discourage Membership Encourage jobholders to opt out Distribute the Opt Out form Use ‘prohibited recruitment conduct’ carries Fixed Penalty Fines ranging from £1,000 - £5,000 Create barriers to the auto-enrolment process 14

Doing nothing is not an option! Fines from the Pensions Regulator Stage 1 – A compliance / unpaid contribution notice Will require remedial action within set timescale Stage 2 – Fixed Penalty of £400 Notice will include requirement to put right the breach Stage 3 – Escalating daily penalties Number of PersonsPrescribed Daily Rate 1-4.£ £ £2, £5, £10,000 15

Auto Enrolment challenges Dealing with initial and ongoing assessment of workforce Providing statutory notices to jobholders at Staging and each pay reference period thereafter notice to entitled workers about the ability to opt in notice to non eligible workers about the ability to opt in and receive an employer contribution notice to eligible jobholders that they will be auto enrolled Postponement notice if applicable Arranging payment of the contributions correctly and on time Dealing with Opt Outs, Opt Ins Dealing with re enrolments (every 3 years!!) 16

Typical Data Requirements for Auto Enrolment Systems Need to consider if this information is up to date, correct and easily assessable. 17

Act now ( at least 6 months before your Staging Date )? Know your staging date Assess your workforce Review existing arrangements Analyse the contribution options Make the high level commercial decisions contribution basis and phasing categories of workers 18

Act now ( at least 6 months before your Staging Date )? Once the high level decisions have been made Decide on a suitable pension provider Establish processes between payroll, provider and employer to successfully deliver AE Employee engagement and communication strategy 19

The Pensions Regulator 20

The information contained within this presentation is based on our understanding of present law and HM Revenue and Customs practice, which may be subject to change. The value of any tax benefits depends on individual circumstances. This presentation is directed at professional advisers only. It should not be distributed to or relied upon by private investors. A recommendation to invest should not be made on the basis of this presentation alone. The value of an investment can fall as well as rise. If investments are encashed in the early years the investor may get back less than the amount originally invested. Argentis Financial Management is authorised and regulated by the Financial Conduct Authority. The Financial Conduct Authority does not regulate tax and trust advice. 21