Clean It Up
UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: Tom-01 on January 10, 2015, 07:51:58 pm
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Evening all
For those of you who employ what is the true cost of employing one person to your business?
Say for example someone will be paid £30k per year, what would it cost to do this?
Thanks
Tom
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You plan on paying some one 30k ??? :o
Everyone on here will be queuing up for that job ;D
Costs vary, are you giving them a separate van ? How much holiday and sick pay are you going to provide, then uniform, equipment insurances of several types, not to mention NI etc....
Darran
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No I'm not planning on paying someone that, it was just a figure. For example if someone was on say £30k would the cost to the business be £35k? £38k?
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No it wouldn't if you paid someone that he would need to be earning you the same
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You'd need good cash flow as well as a good overdraft lol
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Rough figures on employing someone full time would be
Holiday Pay= £1500
Sick Pay= £85 per week if they are off
Employers & Liability Ins= £400
Uniform= £150
Equipment= £500
Driving Insurance= ??
All of these will be tax deductible
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Holiday pay confuses a lot of new employers that's why you get the odd hissy fit on here (why should I pay someone
for not working ) all your doing is paying someone x amount for 46 weeks work but dividing their wage up over 52 weeks.
So make sure your hourly rate reflects this.
If you decide that you want to pay someone £10 an hour work time then you will reduce that hourly rate to cover
holidays.
The real cost of holidays is the profits your company lose when your not working.
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You'd need good cash flow as well as a good overdraft lol
Thanks. Cash flow is fine and I don't have an overdraft.
Currently I pay someone approx £23k a year so I was wondering what the actual cost of employing someone would be, as in sick pay and national insurance. Uniforms, van insurance, employers liability etc would remain the same as what it is now.
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use this to work out their true cost..
http://www.accountingservicesforbusiness.co.uk/calculators1/true-cost-of-an-employee/
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use this to work out their true cost..
http://www.accountingservicesforbusiness.co.uk/calculators1/true-cost-of-an-employee/
Perfect!
Thanks very much Jim :)
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When we employed at various stages the cost for one employee was around £2k per month, this was based on about £8ph.
The £2k was everything, holiday pay, emp NI, extra insurance, uniform, fuel and van running cost etc etc
I think some people forget its not just wages theres a lot more to it than just their wages!
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When we employed at various stages the cost for one employee was around £2k per month, this was based on about £8ph.
The £2k was everything, holiday pay, emp NI, extra insurance, uniform, fuel and van running cost etc etc
I think some people forget its not just wages theres a lot more to it than just their wages!
Yes but you would have the van running costs if you were on your own..at 8 quid an hour I doubt it would cost 2 k a month!! Unless your your talking about an employee in a van on his own of course ;)
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When we employed at various stages the cost for one employee was around £2k per month, this was based on about £8ph.
The £2k was everything, holiday pay, emp NI, extra insurance, uniform, fuel and van running cost etc etc
I think some people forget its not just wages theres a lot more to it than just their wages!
Yeah exactly that was my question. I understand the van running costs etc.
You say 'when' you employed.. Do you no longer employee? And if not why is that?
Thanks
Tom
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When we employed at various stages the cost for one employee was around £2k per month, this was based on about £8ph.
The £2k was everything, holiday pay, emp NI, extra insurance, uniform, fuel and van running cost etc etc
I think some people forget its not just wages theres a lot more to it than just their wages!
Yes but you would have the van running costs if you were on your own..at 8 quid an hour I doubt it would cost 2 k a month!! Unless your your talking about an employee in a van on his own of course ;)
Have to agree, at £8 an hour your total wage bill including holiday pay would be just over £16000 if your paying for a
39 hour week.
That means its going to cost another £8000 per year on top, even set up in their own van this would be hard to reach.
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Yeah exactly that was my question. I understand the van running costs etc.
You say 'when' you employed.. Do you no longer employee? And if not why is that?
Thanks
Tom
Yeah sorry thats one man in a van ;D that doesnt include purchase of van and equipment but that is EVERYTHING else, including fuel!!!
We employed whilst we were trad, a few years a go we took the plunge to go WFP which meant letting the lad go.
We are an equal partnership so decided 2 vans with each of us doing a few days on our own a month and the rest as a 2.
There was a lot more to employing than just chucking someone out in a van with a sheet, to be fair the guy we had last who worked for us for a year was amazing, honest and hard working, he knew the score didnt dick around, we could give him a weeks work and see him Friday with all the cash accounted for and all jobs done!!!
At the end of the day its all about making money, and if 2 of us could do all the work WFP why employ, harsh fact but true, thats the way it was it was a hard decision and even harder letting him go but thats business :-\
Going WFP changed our business hugely we didnt really see the light, we saw employing the way to go rather than WFP but eventually came round to WFP being correct!! LOL Long story made short! LOL