Starting Point — Monthly Fixed Costs
Cover Running Costs
£1,840 / month
The baseline revenue needed to keep the doors open with no salary paid. Every pound above this level is available for salaries, dividends, or retained profit.
Lease£800
Utilities£250
Marketing£200
Insurance (buildings + PL)£175
Cleaning, maintenance & contingency£200
Software, broadband, bookkeeping & other£215
Break-even: no salary · Month 5 (realistic)
Break-Even with Salary
Cover Costs + Jacqui's PAYE
£2,887 / month
Fixed costs plus a £12,570/year PAYE salary (£1,047/month), set at the personal allowance — no income tax due. Employer NI is £0 thanks to the Employment Allowance (£10,500/year).
Fixed costs£1,840
PAYE salary£1,047
Employer NI (Employment Allowance)£0
When does salary become self-funding?
Pessimistic
N/A
Not in Year 1
Realistic
Month 7
Steady state £5,262/mo
Optimistic
Month 4
Steady state £5,933/mo
Year 1 recommendation: reduced salary £8,000–10,000
+ dividends + retained profit
Optimal — Full £20,000 Package
Salary + Dividends + Retention
£4,039 / month revenue
The revenue target to fund Jacqui's full remuneration package plus a £3,750 retained profit buffer. The 20% Corporation Tax rate is factored in before dividends can be paid.
PAYE Salary
£12,570/yr
£1,047/month · no income tax
Dividends
£7,430/yr
£606/yr personal div tax (8.75%)
Gross personal income£20,000/yr
Dividend tax (personal Self Assessment)−£606/yr
Net personal income after tax~£19,394/yr
8 weekly lets at £541/month = £4,328 — just above the £4,039 target. Daily lets and pop-up events provide the additional margin.
Dividends viable from Month 8–9 (realistic scenario)