Over the last couple of years the tax market has mushroomed and there has been an increased focus in both the accountancy profession and in commerce and industry to recruit the brightest and the best. The continuing shortage of candidates in the market has put upward pressure on salaries and firms have risen to the challenge by offering greater flexibility and a diverse and interesting mix of work.
In our recent Salary Survey, one of the main trends we found was the increasing emphasis on compliance and risk management, post Sarbanes-Oxley. We see it mirrored in the profession as well as in-house and tax teams have reorganised and repositioned themselves to take account of the new climate.
Practice
The service offered by the accountancy profession to its clients has changed over the last few years. Compliance services are at a premium but at the other end of the scale, we have seen growth in specialist areas such as transfer pricing, M&A, R&D, FS tax. It all reflects the stage we are at in the economic cycle and whilst growth is steady, some tax teams are struggling to keep up with the volume of work coming in because of the lack of staff at key levels, in particular the newly qualified to 3 years' pqe. Staff at this grade find they are working hard, but the rewards are high and more firms are devising imaginative ideas to keep people happy and retention rates high.
Industry and Commerce
The role of Tax Accountant/Adviser has never been more important in-house and this is the level we have seen most growth in. Any tax specialist with strong accounting skills is worth their weight in gold because of the sheer burden of reporting requirements now required in large organisations. At the more senior end of the market, it is slightly different story. Roles arise less frequently, whether they are start up or replacement, but when they do, the competition is fierce.
Summary
So what of the future? The structural shortage of top quality tax specialists will be a challenge for all the tax market. With any case of demand outstripping supply, the immediate effect is upward pressure on salaries and in the last year we have seen a noticeable shift in the increased packages candidates are being offered. We are not quite back to the late 1990s but there is a sense in the market that things are moving in that direction.
Salary Survey
For further information about current trends and specific salary information, our Direct Tax Salary Survey and Market Report 2008/2009 is now available. To request a copy, please call 020 7405 3404 or email tax@blt.co.uk.
