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. Don't forget, you'll need to have a competent ride leader for each party of six riders. The law says that no one under the age of 16 can supervise a ride.
You may need staff to:
- escort parties of riders, or lead single riders
- muck out
- keep the yard clean and tidy
- feed and water the horses
- turn the horses out and bring them in again
- exercise and groom the horses
- arrange visits from vets/farriers where necessary
- clean, maintain and mend tack
- dry out rugs
- provide any other services you decide to offer, for example riding lessons
- manage pastureland
- repair fences, stables and so on
- manage any accommodation facilities you provide
- undertake any catering services you offer
- take bookings and deal with customers
- answer the phone
- 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.
- 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.