Cloud9 News

How to pay yourself tax efficiently: The optimum salary for 2018/19

The most common question we get asked is, how can I withdraw funds from my company as tax efficiently as possible?  The answer isn’t a simply one, and depends on a few factors, but generally, as long as your company is making the post tax profit to support it, the best combination is a low salary, and dividends.

So, how much salary should I take in 2018/19? Again, that depends on a few things, but lets assume for a minute that you are the only employee of the business. In this case, we would be recommending a salary fo £8,424 per annum, which is equal to the national insurance threshold.

The reason we recommend the above, is that any salary declared over and above this, will attract both 12% employee’s national insurance, and 13.8% employer’s national insurance, but whilst the salary does go down as a cost for the business, and therefore save the company corporation tax, the rate for this is on 19% and therefore you would be out of pocket by 6.8%.

However, if you have another employee on your payroll, who earns at least £702 per month, this then makes the company eligible for the employment allowance, which, if isn’t fully utilised by the other employee, could mean you could afford to increase your salary to the tax threshold of £11,850, as the excess over the NI threshold would only be subject to the 12% employee’s national insurance.

In summary, there are lots of variables that could influence the optimum salary for you, so to be sure you are declaring the correct amount, be sure to get in touch with our team and we would be happy to run through your circumstances with you.  Drop us an email at This email address is being protected from spambots. You need JavaScript enabled to view it..

Making Tax Digital: Why bookkeepers are more important now than ever before!

With technology moving at a faster pace than ever before, even the accountancy industry, that is renowned for being stagnant, is on the move as well.

HM Revenue & Customs are looking to shake things up, in a bid to make the UK’s tax system the most advanced in the world, by improving the efficiency and effectiveness of the compliance by UK tax payers.

With the pilot scheme being rolled out this year, business with a turnover in excess of £83,000 are due to comply next year, and business with a turnover of £10,000 to £83,000 the following year in 2020.

So what’s new? No longer will there be a mad rush to submit your figures for the prior tax year by the following 31 January. Instead, the requirement will be to submit your figures quarterly.

The idea is, to make it simpler for business owners, to submit their financials via software, directly to HMRC’s website. Easier must mean they won’t need an accountant or bookkeeper, right? WRONG!

In our opinion, the value of a top quality bookkeeper has never been do high. If you can have your records constantly up to date, and in good order, your tax submission will be a breeze. Failure to do this, could lead to multiple inaccurate lodgements, and therefore this could trigger unwanted attention for HMRC.

Here at Cloud 9, we are ready for Making Tax Digital, and we want to make sure all our clients make the transition as smoothly as possible. To find out more about how we can help you and your business, please drop us an email at This email address is being protected from spambots. You need JavaScript enabled to view it. and we would be happy to guide you through the process.

Featured software: Float

The biggest cliché in the finance industry is “Cash is King”, but cliché or not, there has never been a truer word spoken.

Too often in our time have we seen businesses not fulfil their potential, because of the restriction that their cashflow brings, so much so, that it can even dictate whether a business survives or not.  Also, at the other end of the scale, managing your cash flow is so important at a time of growth, so you can ascertain the points in which the business may need an injection of funds to support the anticipated growth.

Historically, business owners would always try and create an elaborate spreadsheet in order to forecast their cash position, only to come up with problem after problem, with formulas not working, cells being deleted, and the dreaded circular reference!

Thankfully, a modern solution has been created.  There are plenty of different software out there that have attempted to simplify the cash flow forecast process, but none have done is as slick and effectively as Float in our opinion.

Starting at £39 per month, Float is a fully comprehensive cashflow forecasting tool, that links to your Xero or Quickbooks online accounting system, projects the cash position of your business based on the due dates of sales and purchase invoices, as well as any manually adjustments you would like to allow for.

Where Float really justifies it’s price tag though, is when you start manipulating the forecast based on a variety of scenarios.  For example, ever wondered what impact it would have on your cash flow if you lost just 5% of your turnover, or how long your business could survive if no sales came in. Well, Float can give you all these answers.

There is so much more Float could do for you and your business, so why not get in touch with one of our team to see how we can help implement it into your business, get in touch at This email address is being protected from spambots. You need JavaScript enabled to view it..

Cloud 9 goes North! Introducing Martina Sujova

Martina joined Cloud 9 in November 2017, and heads up our Fife office in Scotland. 

Having come from an administrative background, Martina joined Cloud 9 looking to develop her bookkeeping skills, and work with local business to help them with all things bookkeeping and accounting related. 

Having already achieved level 2 in her ICB qualification, she also added the Sage Line 50 and Xero certification to her CV. 

Throughout her career, Martina has picked up several accolades, including employee of the month. This has demonstrated her passion and drive to whatever she turns her attention too. We are delighted to have her on our team, because with her enthusiasm, combined with our wealth of experience, it makes the Fife office a great opportunity for local businesses to get more than an average bookkeeper working on their finances. 

When Martina isn’t working on the numbers, she enjoys keeping fit, gardening, and relaxing with a good book.

To see how Martina can help you and your business, feel free to drop her an email on This email address is being protected from spambots. You need JavaScript enabled to view it.,uk.

Cloud 9 has more talent! introducing Michelle Davis

Michelle joined forces with Cloud 9 in October 2017, and predominantly operates in the Bedford area, but due to her past professional contacts in North London, is also developing a portfolio in that area as well. 

Michelle came to Cloud 9 with the perfect combination of experience in bookkeeping, business and Xero itself. Having had many previous roles in a financial capacity, such as bookkeeping, finance administration, mortgage advising and more recently working in the department of works and pension, she really has a broad knowledge of the finance world. She took this knowledge to work for accounting software providers, Xero, and has recently worked in an accountancy firm in Bedforshshire, where she has honed her bookkeeping knowledge and has now got the confidence that she has all the skills in her repertoire required to add value to any business. 

After achieving the AAT qualification and Xero Certification, Michelle has pursued a life long goal of being a self employed bookkeeper. She is keen to differentiate herself from any other bookkeeper, by offering the whole package when it comes to office administration. Michelle has identified that most small businesses that have the need for a bookkeeper, also would benefit from other administrative support such filing, scanning and postage. 

Michelle also took her AAT qualification to the next level by becoming and licensed accountant, and a Member in Practice.  This has given her the springboard to offer more than just bookkeeping services to her clients, as she can also turn her hand to the preparation of VAT returns, Self Assessment tax returns, company formations and she is also happy to liaise with HM Revenue & Customs on behalf of her clients, making Michelle a real asset to any business.

When Michelle isn’t getting her clients records up straight, in her spare time she enjoys spending time with her family. 

To see how Michelle can help you and your business, drop her a email on This email address is being protected from spambots. You need JavaScript enabled to view it.


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