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..

We are excited to say that we are heading to Xerocon for the 4th year running.  As the founders of a Cloud based bookkeeping franchise, it would criminal if we didn't go to the conference hosted by the market leaders, and that is why again this year we will be packing our suitcases and heading the 'Big Smoke' for another two packed days of education on the software and the industry.

In our opinion, there’s no conference like it. Xerocon is as beautiful as their software – and we get the opportunity to meet thought leaders and ecosystem partners in a stunning environment, and walk away with a wealth of knowledge. Xerocon is the best place to learn about upcoming Xero initiatives, technologies and offers that help our partners flourish.

We are looking forward to get to know the people in the know Tap into insights from the Xero team and see how updates and innovations can benefit your business, and understand how Xero can make the transition to Making Tax Digital seamless for us all.

From past experience, listening to speakers spark our imagination and look at things differently and challenge your thinking as speakers talk to the topics that impact our industry. We will hear from Xero’s leadership team including Rod Drury and Gary Turner alongside some stellar guest speakers.

We look forward to debriefing you all on our visit, and we hope to keep you ahead of your competition, just like we are staying ahead of ours.  If you have any questions on Xero or Cloud 9, please contact us on This email address is being protected from spambots. You need JavaScript enabled to view it..

We are delighted to announce that Jehan, who heads up our Kettering area, has now completed his training and has passed his Xero certification test.

For our regular readers, you will already be aware of Jehan's background, but for the new Cloud 9 followers, to bring you up to speed, Jehan has recently joined Cloud 9 and has come to us having already achieved the AAT qualification, and has previous experience in accountancy roles, including a spell with accounting giants, Grant Thornton.

Now Jehan has completed his induction, he is now available to help you and your business with all things bookkeeping related.  Jehan is able to process your sales and purchase invoices, as well as the other day-to-day duties, such as reconciling the bank.  However, Jehan has shown a real interest in taking his services to the next level, and he looking for  opportunities to provide management information and add value to your business.

The read more about Jehan, and what he can offer you and your business, please take a look at http://cloud9bookkeeping.co.uk/jehanzaib-sabih, or drop him an email on This email address is being protected from spambots. You need JavaScript enabled to view it. where he will be more than happy to assist with any enquiries.

GoCardless allows you to take control of your payments, ensuring your invoices get paid in a timely manner via Direct Debit. With automatic reconciliation within Xero, GoCardless will improve your cash flow and reduce your admin.

By getting GoCardless in place, you can ensure that you get paid on time, with payments being collected automatically for your Xero invoices as soon as they are due, and with fees capped at 1% (capped at £2), it really is a no brainer to get GoCardless in place if you are invoicing monthly or quarterly.

With Xero and GoCardless teaming up with Directli, the reconciliation of the payments received against outstanding invoices in Xero is seamless, saving potentially hours of time manually matching up payments and invoices.

The setup is easy, and user friendly, so why wait – get in touch to see how we can streamline your processes and help you get paid quicker by your customers. Email us on This email address is being protected from spambots. You need JavaScript enabled to view it. and we would be more than happy to help.