Industry sector: Retail and wholesale

Wholesale based: Wages

Money which 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:

  • take orders and deal with customers (including orders taken online)
  • place orders and deal with suppliers
  • receive and check deliveries
  • manage warehousing operations and plan delivery routing
  • work the cash tills and/or trade counter (if you offer cash and carry)
  • do administrative work, including billing account customers
  • make up orders and load onto vehicles
  • drive delivery vehicles (if you offer a delivery service)
  • stock shelves, unload stores and generally help with a range of jobs
  • clean the premises and vehicles

Some of your members of staff may need to be highly skilled and to have obtained a specific qualification; these will be paid considerably more than unskilled staff. 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:

  • lorry drivers must hold a Driver Certificate of Professional Competence (CPC) qualification
  • you could use a combination of full and part-time staff
  • 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 which 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. Include here the cost of staff pensions.