What Is a Tax Advisor? Duties, Pay, and How to Become One

Tax advisors, or tax consultants, offer various tax consulting services to both individuals and businesses. From preparing tax returns to estimating past due tax payments and representing clients during audits, professional tax advisors help others successfully manoeuvre the tax laws and regulations that impact their finances.

If you have a knack for problem-solving and enjoy working with numbers, then you might consider a career as a tax advisor.

Learn more about tax advisors, what they do, and how much they earn. Discover the steps you need to take to become a tax advisor and explore a cost-effective course that can help you gain job-relevant skills today.

What is a tax advisor?

Tax advisors, or tax consultants, help businesses and individuals navigate the complex world of taxation. As a tax advisor, you'll pair your knowledge of tax law and finance with accounting, auditing, and effective planning skills to minimise tax liabilities for your clients.

Other roles where you can offer tax advice in the UK include certified or chartered accountant or taxation lawyer. 

What does a tax advisor do?

Tax advisors have expertise in taxation and advise others on how to decrease their taxable income or increase their tax refunds. In effect, you will ensure your clients don't pay more taxes than they need to based on their income level, investments, and other factors by conducting audits and resolving tax issues with His Majesty’s Revenue and Customs (HMRC).

As a tax advisor, you’d perform the following tasks:

• Research tax issues and ensure their clients are tax-compliant.

• Prepare and review tax returns.

• Advise and consult on taxation issues.

• Represent clients before HMRC.

• Review proposed legislation that would affect clients' taxes.

Tax advisor salary

You can expect solid earnings for your knowledge and skill set as a tax advisor. According to Glassdoor, tax advisors in the UK make an average base salary of £35,575 a year as of September 2024 [1].

The exact amount you can expect to earn as a tax advisor, though, will likely depend on your work experience, specialisation, employer, and geographic location.

Where do tax advisors work?

Some tax advisors work alone with clients as freelance consultants, whilst others work in large teams of tax professionals at accounting firms such as Deloitte, EY, KPMG, and PwC.

Many tax advisors concentrate on specific areas of taxation, such as international or business tax. As a result, they find employment with corporations, legal companies, government agencies, banks, manufacturers, and more.

How to become a tax advisor

Whilst the specifics will vary based on your background and personal journey, here are the primary steps you'll likely need to take to become a tax advisor:

1. Earn a degree.

Whilst becoming a tax advisor doesn’t always require a degree, some common degrees or qualifications that tax advisors earn include a higher national diploma (HND), a bachelor's degree, or a master's degree. Popular areas of study for tax advising include accounting, business, economics, and finance. 

As you consider the path you'll take to become a tax advisor, the following offers a glimpse of what you can expect from the various educational programmes:

• Higher National Diploma (HND): An HND programme in accounting or a related field of study can help you learn how to analyse financial data and the details of business law and accounting regulations. These programs usually take two years to complete.

• Bachelor's degree: A bachelor’s degree in accounting and finance can help prepare you for a tax advisor position by providing a solid foundation in accounting. It will also offer further depth of study in areas like auditing and assurance, financial management, and financial reporting. This degree generally takes three to six years, depending on your schedule. 

• Master's degree or Level 7 Apprenticeship: Master's degree programs or Level 7 Apprenticeships expose you to more complex tax topics and can prepare you for leadership positions. These programs generally take from two to three years to complete. 

Online master's programmes

If you're looking to gain a master's degree but require a cost-effective, flexible programme that fits your life, the University of Illinois Urbana-Champaign's Online Master of Accounting (iMSA) might be right for you.

2. Gain the right skills.

To become a tax advisor, you must have a strong knowledge of tax law, accounting, and maths and have excellent communication skills. As a result, here are some of the skills you should consider building to join the profession:

• Mathematical ability: As a tax advisor, you'll use solid numerical reasoning abilities. You must be able to analyse financial information to identify errors or problems. 

• Attention to detail and accuracy: You'll need to pay attention to detail since mistakes can be costly for clients.

• Strategic thinking and problem-solving skills: You will be looking at clients' financial data and using strategic thinking skills to identify ways clients can save money or increase profits. You will use your problem-solving skills to find solutions.

• Computer and software skills: You'll need knowledge of various software programs related to accounting, including spreadsheets, databases, and accounting and taxation software. Common software brands used for tax work include QuickBooks, FreeAgent, Freshbooks Sage, Xero Tax, and Zoho Books.

• Verbal communication: Taxes can be complex and convoluted. Effective communication skills will benefit you when discussing delicate financial matters with clients.

• Dedication to continued learning: To stay registered and up-to-date, you must complete continuing education courses each year. 

3. Get relevant work experience.

Work experience in a related field can help prepare you for a tax advisor role. It can include experience as an accountant, auditor, financial assistant, financial examiner, or another finance-related role. You can also gain experience by working in a traineeship.

4. Get a professional qualification. 

Various professional qualifications can increase your chances of getting work as a tax advisor and earn you the designation of “chartered” accountant or tax advisor. Regulated by professional associations, chartered professionals undergo at least three years of intensive study, pass a series of exams, and participate in continued education each year. Examples of professional qualifications for tax advising include:

Associate Chartered Accountant (ACA) Qualification: Offered by the Institute of Chartered Accountants in England and Wales (ICAEW), this training takes place at an accredited accounting firm and takes about three years to complete. 

Association for Chartered Certified Accountants (ACCA) Qualification: This training can occur whilst working at an accounting firm, private company, or government agency. Completion usually takes three to four years.

Chartered Tax Advisor (CTA) Qualification: The route to this qualification can occur in several different ways. These include:

• The CTA Qualification - Direct Route - Offered by the Chartered Institute of Taxation (CIOT) takes two to three years to complete.

• The ATT CTA Tax Pathway, which includes training from the Association of Taxation Technicians and the CIOT, takes three to four years to complete.

• The ACA CTA Joint Programme, which combines ICAEW Chartered Accountant training and CTA training from the CIOT, takes three to four years to complete.

• The CA CTA Joint Programme, which combines training from the Institute of Chartered Accountants of Scotland (ICAS) and the CIOT, takes three to three and a half years to complete. 

5. Join a professional organisation.

Joining professional tax bodies can help enhance your resume and profile. In addition to providing various professional training and continuing education opportunities, professional organisations also host online and live networking events and conferences that can assist you with your professional development.

Some professional organisations you may consider joining include:

• The Chartered Institute of Taxation (CIOT)

• The Association of Taxation Technicians (ATT) 

• The Institute of Chartered Accountants in England and Wales

• The London Tax Society

6. Continue your education and training.

You must complete continuing education courses throughout your career to maintain your “chartered” designation. It's also advisable to regularly keep your tax advisor skills current by taking advantage of other relevant courses and learning opportunities.

Typical career paths 

Your career path as a tax advisor depends on your goals. People often enter the taxation field from jobs in accounting, and you may move into related roles during your career, such as tax accountant or tax analyst. You might also advance into senior positions like tax manager or director.

Start your tax advisor journey on Coursera

Tax advisors have the knowledge, skills, and expertise required to help others manoeuvre the complexities of the tax system. To join the profession, consider taking a cost-effective and flexible course on Coursera to gain the job-relevant skills you need to excel in the profession. Part of the Entrepreneurship: Growing Your Business Specialisation, Financial Accounting Fundamentals from the University of Virginia offers a solid foundation in financial accounting and various financial statements. 

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