{"id":152316,"date":"2023-01-30T12:42:49","date_gmt":"2023-01-30T12:42:49","guid":{"rendered":"https:\/\/startups.co.uk\/?p=152316"},"modified":"2023-01-30T22:11:35","modified_gmt":"2023-01-30T22:11:35","slug":"labour-costs-guide","status":"publish","type":"post","link":"https:\/\/startups.co.uk\/people\/labour-costs-guide\/","title":{"rendered":"What is a labour cost and how to calculate it: a small business guide"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text]Calculating labour costs are a crucial part of formulating your business strategy.<\/b><\/p>\n

These costs are necessary expenses that all businesses must take into account, as no business can survive without them.<\/span><\/p>\n

It’s important to know these costs so that when you are <\/span>setting the sales price of your products<\/a><\/strong>, you can take them into account and your prices can mitigate the expense. If any costs are left out or overlooked in the sales price calculation, your profit margins will potentially be inaccurate or lower than expected, leading to unhappy shareholders or simply an unprofitable business. No one wants that. <\/span><\/p>\n

Who doesn’t want to know what their actual figures are at the end of the year?<\/span><\/i>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column]\n <\/p>

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Your ‘Net Profit’ is your profit minus labour costs (and taxes).<\/b><\/p>\n

Your net profit figure is easy to discover and manage using HMRC-recognised accounting software<\/a><\/strong> come tax season. All VAT-registered businesses – including those that are voluntarily registered – are now required to do so due to the new Making Tax Digital (MTD) legislation which came into effect on April 1 2022<\/strong>.<\/p>\n

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\n In this article, we will cover: <\/h3>\n