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.
Unless your site is very small and basic, it's likely that you'll need staff to help you with all aspects of site management and operation including:
- taking bookings, accepting and recording deposits
- maintaining and improving the site and preparing new pitches
- keeping the grounds neat and tidy
- collecting pitch fees and showing visitors to their pitches
- installing electrical and gas supplies and appliances
- installing and maintaining drainage, sanitation and washing facilities
- refurbishing site-owned static holiday units
- working in any retail outlet, bar, launderette, catering outlet and so on
- cleaning communal areas and facilities
- dealing with waste disposal
- handling caravan sales and purchases
- keeping the business records
- advertising and promotion, including keeping your website up to date
Because the nature of camping and caravanning is very seasonal you may find that you need to take on additional staff during the summer months, for example to help with grass cutting and other maintenance tasks.
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.
- 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.