What’s the difference between and accountant and a tax advisor?
There are a number of reasons why you become part of the tax and accounting reporting system e.g. starting a new business, renting out a property, earning more than £100000 per year or running a limited company. When this occurs you have an obligation to fulfil specific annual requirements in order to maintain compliance.
These annual requirements include preparing and submitting annual accounts or annual tax returns as well as other reporting requirements such as a confirmation statement. These statutory obligations remain the responsibility of the owner or individual and there can be substantial consequences for failure to comply.
Many individuals and business owners turn to an accountant to assist with these obligations, producing accounts or tax returns on their behalf. You’ll obviously want to ensure your accountant is suitably qualified to prepare accounts and tax returns (this can be checked with various bodies but the main choice are the Association of Certified Chartered Accountants or the Institute of Chartered Accountants for England and Wales).
Being compliant is about following rules. This is the role of an accountant and it’s often where many stop in their service offering.
Most business owners, however, want more. They don’t just wish to be compliant, they want to ensure they’re not overpaying tax by missing out on legitimate expense claims or remuneration structures. This is when they choose to use a tax advisor. There are specialist tax advisors for many walks of life, inheritance tax, foreign tax structures even “aggressive tax avoidance”. If you want a specialist on tax advice for small businesses to sit alongside compliance, then choose a specialist like Inca.