Tips
January 11, 2022
  •  
6 mins

You don’t need tax advice; you need tax consultancy

Zara Farr
Digital Accountant

Tax advice and tax consultancy; you’d assume they’re the same thing, right? But those are actually two different approaches, and we wanted to talk to you about why you should invest in the latter over the former.

But first, let’s dig into what these two terms mean:

What is tax advice?

Tax advice is information delivered by a financial expert relating to tax law. Most tax advice aims to minimise the amount of tax a company has to pay while fully complying with tax law.

How is tax advice delivered?

A tax advisor will focus on a specific aspect of your tax, such as R&D tax relief and make and execute a plan that will ensure future savings for your company or, in the case of R&D tax relief, ensure you get cash back from HMRC.

What is tax consultancy?

Tax consultancy looks at the entire picture, your whole business, from a tax legislation perspective. They can then use this data to forecast all the ways you can use this to your advantage and pay as little tax or claim as much money back as possible while still operating within the confines of the law.

What does a tax consultant do?

Like a tax advisor, a consultant will work to ensure that your business is operating in a way that results in tax savings or the ability to claim money back. The difference is that they have a greater investment in your company and work from as many angles as possible to get you the best result.

So, which would you rather invest in?

The thing is that most accounting companies will include tax advice as part of their service but will only focus on that aspect of the service when the need arises.

We don’t want to or believe we should do that.

We want to provide a service that continuously looks at your company’s situation, compares it to changes in tax law and helps you put strategies in place to benefit from those changes as much as possible.

There are benefits available through HMRC that they want you to know about and take advantage of, such as the R&D tax relief; eligible businesses can claim back £33 for every £100 they spend on research and development.

If you’d like to speak about how we can help you reap the benefits of tax consultancy, book a complimentary 15-minute chat.

Zara Farr
Linkedin

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