5 Rivers Accountancy

5 Rivers Accountancy Contact information, map and directions, contact form, opening hours, services, ratings, photos, videos and announcements from 5 Rivers Accountancy, Accountant, 3rd Floor, Suite 2, 86 Paul Street, London.

Great to hear client feedback
29/01/2026

Great to hear client feedback

Raj is excellent, is very prompt with his responses, and accommodating. Highly recommend for anyone looking for Accounts...
29/01/2026

Raj is excellent, is very prompt with his responses, and accommodating. Highly recommend for anyone looking for Accounts + Tax services in the UK.

Wishing you a Merry Christmas from 5 Rivers Accountancy to You and your families! Wishing you a relaxed Holiday period 🎅...
24/12/2025

Wishing you a Merry Christmas from 5 Rivers Accountancy to You and your families! Wishing you a relaxed Holiday period 🎅🎁🎄⛄❄️🔔 and to a prosperous 2026 💰📈

31 December Ltd Companay Year end, The simplest way to defer tax.Here's how, Your company is taxed on ACCRUED income, no...
19/12/2025

31 December Ltd Companay Year end, The simplest way to defer tax.

Here's how, Your company is taxed on ACCRUED income, not cash received.

If you invoice on 31 December, that income counts in THIS year.
If you invoice on 1 January, that income counts in NEXT year.

Same work. Different tax year. Huge impact.

Example: Agency with ongoing projects
You have 5 projects completing in late December.
Total value: £75,000

Option A: Invoice all on 30 December
£75,000 taxable this year
Tax @ 23%: £17,250 due September 2026

Option B: Invoice all on 2 January
£75,000 taxable next year
Tax @ 23%: £17,250 due September 2027

You keep £17,250 in your business for an extra 12 months, what you can do with that

When this works best:
✓ Ongoing retainer clients (you can legitimately bill early or late)
✓ Projects that span year-end (invoice when complete)
✓ Ad-hoc consulting (flexible timing)
✓ Products delivered in January (invoice on delivery)

When this doesn't work:
✗ Monthly billing arrangements (must bill monthly)
✗ Completed work in December (should recognise in December)
✗ Contractual billing dates (must honor contract)
✗ If cash flow critical (need the money now)

What to do RIGHT NOW:
1. Review your December invoicing schedule
What's planned for 31 December?
Can any legitimately move to 1-2 January?
2. Check client contracts
Any flexibility on billing dates?
3. Review work completion dates

What's genuinely completing in 2026, over to you!

Two friends, John and Eddie, earned roughly the same money.John's tax bill: £4,372Eddie's tax bill: £16,872Eddie is pi**...
18/12/2025

Two friends, John and Eddie, earned roughly the same money.
John's tax bill: £4,372
Eddie's tax bill: £16,872

Eddie is pi**ed. He wants answers.

Here's why the amounts were so different:
Reason 1: Student Loan
Eddie has outstanding student loan.
All earnings above £27,295 taxed at additional 9%.
John never had a student loan.
On £60,000 earnings:
Student loan repayment: (£60,000 - £27,295) × 9% = £2,943
Eddie pays this. John doesn't.

Reason 2: Child Benefit
Eddie has 2 kids and receives child benefit.
He earns over £60k, so has to pay it ALL back.
Child benefit clawback: £2,212
John has no kids. No clawback.

Reason 3: Payments on Account
Eddie's first year in business—no payments on account made yet.
John's been trading 3 years—already made payments on account.
Eddie's bill includes:

This year's tax: £8,330
Payment on account (50%): £4,165
Payment on account (50%): £4,165
Student loan: £2,943
Child benefit: £2,212

Total: £16,872
John's bill includes:

Balance from this year: £2,186 (after deducting payments already made)
Payment on account: £2,186

Total: £4,372
Same income. £12,500 different tax bill.

The lesson:
Tax is complicated.
Your bill depends on:

-Student loan status
-Child benefit
-Previous payments on account
-Number of tax years trading
-Dividend vs. salary mix
-Other income sources

This is why comparing yourself to others is dangerous.
"Why is my tax bill higher than my mate's?"

Because your situations are different focus on understanding YOUR position!

Year-End Strategy #2: Capital expenditure timing for Ltd Companies with 31 Dec year endsBuy equipment in December, not ...
17/12/2025

Year-End Strategy #2: Capital expenditure timing for Ltd Companies with 31 Dec year ends

Buy equipment in December, not January, and get tax relief THIS year.

Here's how it works:
The principle:
Capital expenditure (equipment, vehicles, computers, machinery) gets tax relief in the year you buy it.

Buy in December 2025 = tax relief in 2025
Buy in January 2026 = tax relief in 2026
Same purchase. Different tax relief year.
Example 1: New laptop and equipment
You need £5,000 of IT equipment.
Option A: Buy in January 2026
Tax relief: 2026
Corporation tax saved: £1,150 (in 2027)
Option B: Buy in December 2025
Tax relief: 2025
Corporation tax saved: £1,150 (in 2026)
You get the tax relief 12 months earlier.

Example 2: Company vehicle
You need a new electric van for the business.
Cost: £35,000
Electric vehicles get 100% first-year allowance.
Buy in December 2025:
Tax relief: £35,000 this year
Tax saved: £8,050 (£35,000 × 23%)
Buy in January 2026:
Tax relief: £35,000 next year
Tax saved: £8,050 (but 12 months later)
The £8,050 difference in your cash flow matters.

Important: Don't buy just for tax relief

Bad decision:
"I'll buy £50,000 of equipment I don't need to save £11,500 in tax."
You've spent £50,000 to save £11,500.
Net cost: £38,500.
That's expensive.

Good decision:
"I'm buying £50,000 of equipment I need anyway. Should I buy in December or January?"

Year-End Strategy #1: Invoice timing.The simplest way to defer tax.Here's how:The principle:Your company is taxed on AC...
16/12/2025

Year-End Strategy #1: Invoice timing.
The simplest way to defer tax.
Here's how:
The principle:

Your company is taxed on ACCRUED income, not cash received.

If you invoice on 31 December, that income counts in THIS year.
If you invoice on 1 January, that income counts in NEXT year.

Same work. Different tax year. Huge impact.

Example: Agency with ongoing projects
You have 5 projects completing in late December.
Total value: £75,000

Option A: Invoice all on 30 December
£75,000 taxable this year
Tax @ 23%: £17,250 due September 2026

Option B: Invoice all on 2 January
£75,000 taxable next year
Tax @ 23%: £17,250 due September 2027

You keep £17,250 in your business for an extra 12 months, what you can do with that

When this works best:
✓ Ongoing retainer clients (you can legitimately bill early or late)
✓ Projects that span year-end (invoice when complete)
✓ Ad-hoc consulting (flexible timing)
✓ Products delivered in January (invoice on delivery)

When this doesn't work:
✗ Monthly billing arrangements (must bill monthly)
✗ Completed work in December (should recognize in December)
✗ Contractual billing dates (must honor contract)
✗ If cash flow critical (need the money now)

What to do RIGHT NOW:
1. Review your December invoicing schedule
What's planned for 31 December?
Can any legitimately move to 1-2 January?
2. Check client contracts
Any flexibility on billing dates?
3. Review work completion dates
What's genuinely completing in December vs. January?

Over to you to check

If your company year-end is 31 December, you have 16 days to make decisions that could save thousands.Not next year. Thi...
15/12/2025

If your company year-end is 31 December, you have 16 days to make decisions that could save thousands.
Not next year. This year.

Here's what most business owners miss:

The reality:

Every decision you make between now and 31 December affects your company's profit for THIS year.

Which means it affects your tax bill for THIS year.

Examples of what I mean:
Invoice on 31 December vs. 1 January = different tax year
Purchase equipment in December vs. January = different tax relief
Pay bonuses in December vs. January = different deduction year

These aren't complicated tax schemes.
They're legitimate timing decisions that can defer £10,000-£50,000 in tax by 12 months.

The problem:
Most business owners don't think about this until January.

By then, it's too late.

Your year-end has passed.

The numbers are locked in.

You can't change them.

Over the next 10 days, I'll share specific year-end strategies:

He turned down £500,000 for his business.Now it's worth £0.True story. Former client, Background:Small manufacturing bus...
11/12/2025

He turned down £500,000 for his business.
Now it's worth £0.
True story. Former client, Background:

Small manufacturing business.
Been running 15 years.
Decent, consistent revenue.
Comfortable profit.

2019: Received an offer for £500,000
Business broker approached him.
Buyer willing to pay £500k cash.

He turned it down.
Why?
"It's worth more than that."
"I'll build it bigger and sell for £1m."
"I'm not ready yet."

Fair enough. His choice.

What happened next:
2020: COVID hit. Revenue dropped 40%.
2021: Tried to recover. Took on debt to survive.
2022: Key client left. Lost 30% of remaining revenue.
2023: Closed the doors. Business worthless.

He walked away with nothing.
Actually worse than nothing, he had £80k in personal guarantees to repay.

The lesson isn't "he should have sold."
The lesson is: Nothing lasts forever

-Markets change
-Customers leave
-Competition evolves
-Your energy fades
-Opportunities don't wait

Banking your entire future on a business sale is risky:

Buyers back out
Markets shift
Your business might not be sellable when you're ready
Personal circumstances change (health, family, burnout)

The better strategy:
Build wealth OUTSIDE your business while you build the business.
How:
1. Pension contributions (from the company)
£20k/year for 15 years @ 6% growth = £465k
2. Investment properties (using profits)
Buy 2-3 over 10 years = £300-500k equity
3. ISA investments (personal savings)
Max out each year=£100-200k over 10 years
4. New Consultancy Revenue

Your 2025 Tax Bill Is Already Rising… Even If Your Profits Aren’t.The Budget introduces multiple stealth increases:✔ Hig...
10/12/2025

Your 2025 Tax Bill Is Already Rising… Even If Your Profits Aren’t.

The Budget introduces multiple stealth increases:
✔ Higher tax on dividends
✔ Higher tax on savings
✔ Higher property taxes
✔ Higher benefit-in-kind charges
✔ Frozen thresholds pushing you into higher bands

If your business is doing £200k–£2m, these “invisible” rises hit harder because you pay tax in more than one place; salary, dividends, assets, vehicles and savings.

👉 If you want one clear plan that covers your business AND personal tax, contact 5 Rivers Accountancy today.

Peter wanted to make £50,000/year.I pulled up a spreadsheet and showed him exactly what he needed to do.Here's how:Work ...
09/12/2025

Peter wanted to make £50,000/year.

I pulled up a spreadsheet and showed him exactly what he needed to do.

Here's how:
Work backwards from your goal.
Money needed personally: £50,000

-Add personal tax (assume higher rate): £50,000 ÷ 66.25% = £75,472 in dividends needed
-Add corporation tax: £75,472 ÷ 75% = £100,629 profit before tax needed
-Add overheads (Peter's are £70k): £100,629 + £70,000 = £170,629 gross profit required
-Peter's gross profit margin: 40%
-Sales needed: £170,629 ÷ 40% = £426,573 in annual sales
-Peter's average sale: £900
-Jobs required: £426,573 ÷ £900 = 474 jobs
-Peter's conversion rate: 50%
-Leads required: 948(18/week)

Peter now had clarity:
To make £50k/year personally, he needs 18 leads per week.
That's it. That's the number.

Then we went further...
What if Peter could improve his variables?
Scenario: Small improvements

Reduce cost of sales by 10%
Increase average price by 10%
Improve conversion rate by 10%

Result:
Peter could now draw an additional £52,581 from his company.
He'd double his income without needing a single extra lead.
This is the power of working backwards:
Most business owners set vague goals:

"I want to grow"
"I want to be successful"
"I want to make more money"

But they never define:

How much exactly?
What does that require?
How do I get there?

Peter now knows:
18 leads/week = £50k/year take-home
Or improve margins/prices = £100k/year take-home
He has a roadmap. Not a wish.
Your turn:
What do YOU want to make personally?

Address

3rd Floor, Suite 2, 86 Paul Street
London

Opening Hours

Monday 9am - 5:30pm
Tuesday 9am - 5:30pm
Wednesday 9am - 5:30pm
Thursday 9am - 5:30pm
Friday 9am - 5:30pm

Telephone

+442070999297

Website

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