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

Subscribe to Gravitate

Get industry insights that you won't delete, straight in your inbox.
We use contact information you provide to us to contact you about our relevant content, products, and services. You may unsubscribe from these communications at any time.

More news

Allowable expenses that you can easily claim through your business and help save on tax

Find out about the type of expenses you're able to put through a limited company.

Read Article

7 Reasons we love Pleo Bills and how it makes processing payment runs easier

Payment runs are a thankless task and can often be very time consuming, getting together the invoices, processing them and getting approval

Read Article

32 Ways to Get the Maximum Value out of your Business

A question I get asked all the time is: ‘What can I take out of my business?’ and ‘how do I save more tax?

Read Article

Gravitating Towards The Future

Discover how Mike and Sam from Gravitate Accounting plan to tax their business efficiently in order to build a bright future for themselves,

Read Article

Do you know your real-life number

Every business owner has a real-life number. It is everything behind the scenes, that you are working towards in your real life, things like

Read Article

You’re not getting the tax advice you need

There’s an unspoken truth when it comes to tax advice: for business owners, there’s a complete lack of transparency from advisors over what

Read Article

Tax Implications for Crypto Currency

Holders of cryptoassets need to be aware of the tax implications, whether they are trading or mining.

Read Article

Inheritance Tax Planning

As inheritance tax take increases by a third, it is time to think about more efficient wealth and tax planning.

Read Article

Find out how the Autumn Budget 2021 announces will impact your business

Last week, the Chancellor of the Exchequer – Rishi Sunak – announced a wave of tax reforms...

Read Article