Industry sector:

Car alarm fitter: Wages


Money that you take from the business to cover your own personal living expenses is known as 'Drawings'. This should not be included here, but will be dealt with elsewhere in the cash flow.

Before you can make an estimate of the wages you will pay each month to your employees you will need to identify the work that must be done and how many people will be needed to do it.

Staff duties

You may need staff to carry out the following duties:

  • deal with customers' enquiries and make bookings
  • carry out security device fitting work
  • diagnose faults and make repairs (if you offer this service)
  • order security systems, other accessories and materials from suppliers
  • deal with and advise customers about the best system for their vehicle
  • write out bills and collect payment from customers when they pick up their vehicle
  • keep the business records
  • collect and deliver customers' vehicles (if you decide to offer this service)

The wages you pay your staff will depend to some extent on what is the going rate in your area. The Annual Survey of Hours and Earnings (ASHE), which is carried out by the government, gives average weekly wages (national and regional) for a wide range of different types of job. The Survey is available online on the Office for National Statistics (ONS) website.

Don't forget:

  • you could use a combination of full and part-time staff. Part-time work is often attractive to parents with children at school
  • the National Minimum Wage Act sets a minimum amount that you must pay your staff. Workers aged 25 and over receive a Living Wage premium on top of the standard National Minimum Wage
  • there is employment legislation that you should be aware of
  • you will have to pay employer's National Insurance Contributions (NICs) and you will have to operate PAYE in 'real time'. You may have to make employers' minimum contributions to an auto-enrolment pension scheme too

In the cash flow, just put the amounts you will actually pay to staff after you have deducted NICs and PAYE - you will show these separately. You should also include here the cost of staff pensions.