Accountant vs bookkeeper vs tax adviser: who do you need?

A bookkeeper keeps your day-to-day records straight, an accountant turns those records into accounts and tax returns, and a tax adviser plans your tax position and deals with complex or disputed issues. Most small businesses need a bookkeeper (or good software) all year and an accountant at year end. A specialist tax adviser is usually a one-off hire for a big decision or an HMRC problem.

What does each one do?

Each role sits at a different point in the same chain, from raw transactions to tax planning. The table gives the usual split, although the roles overlap in practice.

The Institute of Certified Bookkeepers says its members can also offer self assessment, corporation tax returns and Companies House filings, depending on their qualification and licence. So a well-qualified bookkeeper may cover much of what a small business needs. See what bookkeeping involves and what an accountant does.

Which titles are protected?

Very few. The word “accountant” is not protected by UK law, so anyone can use it without a qualification.

• Chartered accountant is restricted to members of ICAEW, ICAS or Chartered Accountants Ireland. ACCA members use “chartered certified accountant”.
• Statutory auditor is a legal status. Under Part 42 of the Companies Act 2006, only members of a recognised supervisory body such as ICAEW or ACCA can sign an audit report, and the Financial Reporting Council is the UK audit regulator.
• Tax adviser is not a protected title. Anyone can describe themselves this way.

Our guide to chartered vs unqualified accountants explains how to check a membership.

What has changed for tax advisers in 2026?

Paid advisers who deal with HMRC for clients must now register with HMRC. The Finance Act 2026 rules started on 18 May 2026, and HMRC’s guidance (updated 3 September 2026) says you count as a tax adviser if you interact with HMRC about someone else’s tax affairs and are paid for it. That includes accountants and bookkeepers who file returns or call HMRC for clients.

HMRC is opening registration in stages:

Each window lasts three months. Registered advisers must meet HMRC’s minimum conditions, including being supervised for anti-money laundering, and HMRC can suspend those who fall short. For clients, the practical point is simple: ask whoever acts for you whether they are registered. Advisers can read more in our piece on the HMRC agent services account.

Which one do you need?

Match the adviser to the job, not the other way round. Use this decision list.

• If you have regular sales, costs and a bank feed, you need bookkeeping. You can do it yourself in software or pay a bookkeeper.
• If you run a limited company, you need year-end accounts for Companies House and a Company Tax Return for HMRC. An accountant usually prepares both.
• If you are a sole trader or landlord with simple affairs, a bookkeeper or accountant can file your Self Assessment return.
• If your company needs an audit, you need a registered auditor. Most small companies are exempt; see audit exemption rules.
• If you are selling a business, restructuring, dealing with inheritance or under HMRC enquiry, add a specialist tax adviser, often a Chartered Tax Adviser (CTA).
• If you employ staff, you need payroll. A bookkeeper, payroll bureau or accountant can run it.

How to check who you are hiring

A few checks take five minutes and protect you if something goes wrong.

1. Ask which professional body they belong to, and check the body’s public register.
2. Ask who supervises them for anti-money laundering. HMRC says every accountancy service provider must be supervised, by a professional body or by HMRC.
3. Ask whether they are registered with HMRC as a tax adviser if they will deal with HMRC for you.
4. Ask about professional indemnity insurance, which professional bodies require of members in practice.
5. Get an engagement letter that lists exactly what is and is not included.

What does each cost?

Bookkeepers are usually the cheapest per hour, accountants charge more for year-end work, and specialist tax advisers charge the most for one-off advice. Our guides to bookkeeper costs and accountant costs give current rates. Paying a bookkeeper to keep tidy records often cuts the accountant’s year-end bill.

Frequently asked questions

Can a bookkeeper do my tax return?

Yes, if they are qualified and their licence covers it. The Institute of Certified Bookkeepers says its members can offer self assessment and corporation tax returns, depending on their membership level and licence.

Is an accountant the same as a tax adviser?

Not always. Many accountants give everyday tax advice, but specialist tax advisers, often Chartered Tax Advisers with the CIOT, focus on complex planning and disputes.

Can anyone call themselves an accountant?

Yes. “Accountant” is not a protected title in the UK, although “chartered accountant” and “statutory auditor” are restricted.

Does my tax adviser have to register with HMRC?

Yes, if they are paid to deal with HMRC about your tax affairs. Mandatory registration began on 18 May 2026, with staged windows for different groups running to early 2027.

Do I need an accountant if I use accounting software?

Not necessarily. Software can handle bookkeeping and many returns, but most limited companies still use an accountant for year-end accounts and the Company Tax Return.