2. 1.Outline of the opportunity; 2.What this means in practice; 3.Quantifying the financial benefits; 4.Outsourced administration; and 5.Compliance aspects. Travel & Subsistence Planning

3. Outline of the opportunity Mobile employees who work at different locations during the day incur expenses which can usually be paid free of tax and National Insurance by the employer. Most employers within your sector pay some expenses but not as much as the tax rules actually allow. Travel & Subsistence planning is a straight forward concept. Employees “swap” pay (which has tax of 20% and NIC of 12% deducted) for increased amounts of business expenses (which are paid without deductions of tax and NIC).

4. Outline of the opportunity The result is: 1.The employee takes home more each month; 2.The employer pays less in National Insurance; 3.Overall business costs reduce, potentially providing scope for greater flexibility.

5. £2000 Gross pay Unused Tax Free Expenses £300 Existing Position

6. Gross pay £1700 Expenses £300 Revised Position

7. HMRC Brief 24/09 Benchmark Scale rates for day subsistence One meal rate (Five hour rate) – A rate of £5 may be paid Two meal rate (Ten hour rate) – A rate of £10 may be paid Approved Mileage rates Cars & Vans45p (First 10,000 business miles) Motorcycles24p Bicycle20p What this means in practice

8. Some basic assumptions Mr X Ample earns £2,000 gross per month and is a mobile worker within a geographical area. He is usually out and about around his area for up to 8 hours per day. He lives within his area and travels a total of say 22.2 miles per day 22.2 miles x standard HMRC travel allowance @ 45p per mile £5 standard HMRC subsistence allowance for 5+ hour shift. = £15 per day = £300 a month (20 days) What this means in practice

9. Total cost to Employer: £2,194.71 (inc. £194.71 ER NI) 1Mr X Ample 30/06/2011NA -- -- -- A Basic Pay1 £ 2,000.00 PAYE Tax£275.20 National Ins£167.76 Total Gross Pay £2,000.00 Net Pay:£1,557.04 Tax Code: 747L M1 Per: 12 PAYSLIP Current Payslip

10. Total cost to Employer: £2,151.31 (inc. £151.31 ER NI) 1Mr X Ample 30/06/2011NA -- -- -- A Basic Pay1 £ 1,700.00 PAYE Tax£215.20 Expenses1 £ 300.00 National Ins£131.76 Total Reward £2,000.00 Net Pay:£1,653.04 Tax Code: 747L M1 Per: 12 PAYSLIP Revised Payslip

11. Current Total Cost:£2,194.71 Cobia Total Cost:£2,151.31 Saving per employee: £43.40 Annual saving for a 100 employee business £43.40 x 100 x 12mths = £52,080.00 What this means in practice - Employer

12. Current Net:£1,557.04 Cobia Net:£1,653.04 Benefit to employee: £96.00 Annual benefit for 100 employees: £96.00 x 100 x 12mths = £115,200.00 What this means in practice - Employee

13. The employee currently receives the majority of benefits, and the employer may decide to share in this benefit. This is typically done through the introduction of an amendment in the salary sacrifice working. For instance, the employer may decide to share 25% of the potential benefit with the employee whilst holding on to 75%. Enhanced Savings

14. Current Total Cost: £2,194.71 Cobia SPLIT Total Cost: £2,079.31 Saving per employee: £115.40 Annual saving for a 100 employee business: £115.40 x 100 x 12mths = £138,480.00 What this means in practice - Enhanced

15. Current Net:£1,557.04 Cobia Net:£1,581.04 Annual benefit for 100 employees: £24.00 x 100 x 12mths = £28,800.00 Benefit to employee: £24.00 What this means in practice - Employee

16. Employment Law HMRC Compliance Systems & Management Outsourced Administration

17. Review of Contract of Employment, Employee Handbook etc. Amendments developed in line with the expense programme Consultation Process with employees will be co-ordinated by Cobia Implementation Team All supporting documentation is provided by Cobia: –HMRC Dispensation –Employee Communication –Bespoke Expense Policy –Eligibility Criteria in line with granted dispensation Continued HR Support to manage transient workforce Employment Law

18. Cobia advise and assist in all matters regarding UK employment taxation Former HMRC personnel Former “Big 4” personnel Not just our say so: “This ability by COBIA to review the eligibility is really impressive and adds to our confidence that the scheme run for your staff will prove to be realistic and compliant.” Large Business Service, Employer Compliance Compliance Aspects

19. Cobia work with a variety of systems partners to advance the efficiency in data sharing between Cobia and client Cobia provides a full or partially managed outsourced Payroll service Cobia will fully manage the Compliance of your scheme right down to each individual employee Cobia will focus on administrative controls and documented evidence to support any future PAYE risk assessment. Systems and Management

20. Employee Benefits -Increased Net Pay Employer Benefits -Increased operating margin through reduction in NI Contributions -No impact on working capital -Fully outsourced solution -Employment Law is compliant -Big 4 level compliance & risk management Summary

21. Cobia has developed a successful structure which allows you to determine the level of savings available to your business without investing in significant costs. Based on a detailed review, we will provide a summary document and follow up meeting which not only outlines the opportunity but will also detail the anticipated financial savings. This will allow you to make an informed, business decision based on genuine data. The cost of this process is dependent on the size of your business: Number of EmployeesCost (£ plus VAT) 0 – 150200.00 151 – 500350.00 501 – 750 500.00 751 – 1,000650.00 1,001 +Priced on Request Interested in hearing more?

22. Steve WilesManaging Director0845 226 0580 07879 882300 steve.wiles@cobia-uk.com James DoyleCommercial Director07967 339364 james.doyle@cobia-uk.com james.doyle@cobia-uk.com Anthony BennettGroup Tax Director01582 390007 07768 702164 anthony.bennett@cobia-uk.com Contacts