Accountant vs Tax Advisor: What’s the Difference and Which Do You Need in London? 

Many London-based business owners ask the same question: should I hire an accountant or a tax advisor? While both offer valuable financial services, they serve different roles. Choosing the right professional for your business can save money, ensure compliance, and provide clarity as you grow. 

In this article, we break down the differences between accountants and tax advisors, explain where their responsibilities overlap, and help you decide which service your business needs. 

What Does an Accountant Do? 

An accountant is a financial professional who helps individuals and businesses manage day-to-day finances, keep accurate records, and comply with legal and tax obligations. At East London Accountants, our team supports clients with: 

• Bookkeeping 
• VAT returns and Making Tax Digital 
• Payroll and pensions 
• Financial reporting 
• Limited company setup 
• Self-assessment filing 
• Annual accounts preparation 

Accountants offer a broad financial overview of your business and ensure your operations run smoothly from an accounting perspective. 

What Does a Tax Advisor Do? 

A tax advisor is a specialist in UK tax legislation and planning. They provide expert advice on how to reduce tax liabilities legally and can help businesses structure themselves more efficiently. 

Tax advisors often focus on: 

• Tax efficiency strategies 
• Inheritance tax planning 
• Personal tax optimisation 
• Business restructuring for tax relief 
• Capital gains tax (CGT) and property transactions 
• Corporation tax planning 
• Specialist tax claims (R&D tax credits, etc.) 

In short, a tax advisor is who you turn to for advanced strategies, not just compliance. 

Where Do Their Services Overlap? 

In many cases, especially in small businesses, the role of an accountant and tax advisor can overlap. For example: 

• A good accountant will advise on basic tax efficiency. 
• Many accountants will complete and submit tax returns. 
• Some accountants, like our team at East London Accountants, offer specialist tax support as part of our services. 

However, if your needs involve complex financial planning, international tax, or high-value transactions, it may be worth engaging a dedicated tax advisor. 

Which One Do You Need? 

Startups and Small Businesses: 

An accountant is typically the best starting point. They’ll help set up your financial systems, manage VAT, and take care of bookkeeping, payroll, and tax returns. 

Sole Traders and Freelancers: 

An accountant will help file your self-assessment, track expenses, and avoid penalties. If you’re dealing with multiple income sources or investments, you may also benefit from tax advice. 

Landlords and Property Investors: 

If you own multiple properties, a tax advisor can help with CGT, allowable expenses, and tax-efficient ownership structures. For day-to-day accounts and submissions, an accountant is key. 

Growing Businesses or High Earners: 

Businesses approaching a growth stage or dealing with investors may benefit from both. An accountant ensures compliance and financial clarity, while a tax advisor can assist with strategic tax planning. 

How to Choose the Right Professional 

1. Assess your needs: Do you need help filing accounts or developing a tax strategy? 
2. Ask about qualifications: Are they experienced in your business type or industry? 
3. Check services: Do they offer year-round support or just annual filing? 
4. Review pricing: Are fees clear, fixed, and reasonable? 
5. Book a consultation: Talk through your requirements and see who fits best. 

Why East London Accountants Offers the Best of Both 

At East London Accountants, we combine general accounting services with dedicated tax planning support. Our experienced team helps clients across London with everything from day-to-day accounts to specialist tax efficiency advice. 

You don’t have to choose between an accountant and a tax advisor—we offer both, all under one roof. Whether you’re a limited company, freelancer, or property investor, our goal is to help you retain more of what you earn. 

Book a Free Consultation 

Still unsure whether you need an accountant, a tax advisor, or both? Let’s talk. 

We offer free, no-obligation consultations where we assess your situation and recommend the right support to suit your business needs. 

Contact East London Accountants today and get expert help tailored to your goals.