Industry sector: Consumer services

Burglar 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 might need staff to:

  • deal with customer queries, make bookings and carry out administrative tasks
  • survey premises, make security assessments and produce system designs
  • order alarms and other security equipment
  • buy stocks of materials such as wiring, cables and connectors
  • work alongside you during the installation process, doing the same sorts of jobs as you do
  • cover your 24 hour emergency response service
  • write out bills and collect money from customers
  • keep the business records

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.