In recent years, the role of a tax accountant has expanded in the United Kingdom to become that of a financial planner as well. As such, there are more tax accountants being employed by major financial institutions in Britain. In order for them to accomplish their job, they have to undergo training and follow-up continuing education every two years or so. But how much training and how much CPA (Certified Public Accountant) training do tax accountants have in order to do their jobs?
Majority of UK Tax Accountants
Large financial companies and organizations employ a large majority of UK tax accountants. Examples of these large organizations are HMC, formerly known as HSBC, and the T&A Group. Examples of small businesses include SEP, formerly known as Standard & Poor's. These tax accountants need to have a bachelor's degree in accountancy, either through an accredited university or through one of the four professional bodies in the United Kingdom: The Institute of Chartered Accountants in London (ICAN), Institute of Chartered Accountants in Wales (ICAN Wales), the National Association of Professional Accountants in Ireland (NAPFAI) or the Chartered Institute of Taxation in the United Kingdom (CITA).
Education of Accountant
The second step to becoming a tax accountant is receiving a master's degree in tax law from one of the four professional bodies. The four bodies in the United Kingdom are the Institute of Chartered Accountants in London, the Institute of Chartered Accountants in Wales, the National Assessor of Tax Eques Tragers and the National Institute of Professional Accountants in the United Kingdom. These organizations provide accreditation to accountants who obtain their degrees. The next step would be to participate in a nationwide tax exam. This exam can be taken in either a classroom setting or via the Internet.
Certified Accountant
Once a tax accountant passes the exam he or she can become certified. Becoming certified as an accountant means that the tax accountant has met a certain level of education and experience. It also means that they have completed all requirements needed to practice law in the United Kingdom. This certification cannot be retroactively earned but must be earned by a tax accountant by the time the account is closed.
Training Period of Tax Accountant
After becoming certified, a tax accountant can begin working as a tax planner. There is usually a short training period, usually a year, during which time the planner will learn how to assess taxes and file financial reports to the government. They also will learn how to deal with tax laws that vary depending on the country where the client lives. This education prepares them to handle negotiations between tax departments and clients.
Difference between Tax Accountant and Financial Planner
Another important difference between a tax accountant and a financial planner is their skill set. A tax accountant is generally required to be knowledgeable in tax law. Therefore, they will generally have more upper-level degrees in accounting, finance, economics and related courses. Financial planners typically only need a bachelor's degree in business to begin work in this field. While most planners start out in business, there are some who have also had significant business experience.
Another important difference between a tax accountant and a financial planner is their compensation. A tax accounting company makes about forty thousand pounds a year. They also generally work freelance, being offered a few thousand dollars for any small jobs. On the other hand, financial planners can make anywhere from ten to hundred thousand pounds a year.
In general, when comparing tax accountant or financial planner, the key points are experience, education and compensation. The experience and education are obvious, because these are the essential prerequisites for entering the tax preparation field. While compensation may seem a little trivial in comparison, it is an important consideration because tax attorneys make more than tax accountants. In fact, there are some tax accountants who do nothing but represent businesses on the side. Overall, if you want to be an effective tax planner or tax accountant, you must have the appropriate educational background and training.
