Yes, expose as much of that plastic collar as you can, but be very careful, the clayware is brittle and you really dont want to risk cracking it. Once you've cleared enough, I'd run a hacksaw through the 'Lip' on the collar, this should then split and open up, allowing the seal to release a bit and the collar to come off the pipe without risk of damage.
Id then find a suitable sized Flexseal coupler to go from the clayware to 110mm plastic, carry on horizontally to your end point, then fit a 90° bend, and a suitable adaptor to accept the waste pipes.
If you cannot get the 62.5 mm of fall across that distance, then it can be reduced but no less than 1:100, or you will have issues.
Id then find a suitable sized Flexseal coupler to go from the clayware to 110mm plastic, carry on horizontally to your end point, then fit a 90° bend, and a suitable adaptor to accept the waste pipes.
If you cannot get the 62.5 mm of fall across that distance, then it can be reduced but no less than 1:100, or you will have issues.