Tax Salary Survey and
Market Commentary
2014
In association with
www.pro-tax.co.uk
Foreword
Welcome to 2014. The Pro-Recruitment Group is proud to be market leaders
in the tax, legal and finance world and once again the Tax Salary Survey
and Market Commentary is regarded as one of the most comprehensive
and accurate pieces of information available to the tax profession.
What a difference 3 months makes! We said goodbye to 2013 with an
exceptionally strong Q4 where we saw record number of new vacancies, with
numbers nearing the levels we saw pre-2009. The first half of 2013 saw a very
slow upturn in the number of new hires across accountancy, finance and tax
so it was so pleasing to see most of the Big 4 and Top 10 firms coming to us
with volume recruitment needs in tax, audit and advisory in the latter part of
the year. The recovery has gathered pace in commerce and industry too with
a record number of roles for newly qualified candidates, meaning the attrition
within practice has spiked at a time when the same firms seek to embark
on recruitment drives. The market is still lacking recently qualified ACA and
CTA candidates due to the reduction of intakes in 2010 and 2011 by many of
the Top 20 accountancy firms. The signals from both Partners and Heads of
Tax & Finance are that 2014 will be a record year in terms of growth for their
businesses and the economy as a whole. The advice for accountancy firms
looking to recruit is to identify the need as early as possible (easier done if
this is for growth rather than attrition!) as the market swings back in favour of
the candidates, who are now able to command higher salaries with multiple
offers on the table.
The senior end of the market has been reasonably steady over the last
12 months and Pro-Tax was instrumental in some significant senior tax hires
across most sectors but most notably Oil & Gas, Insurance and Consumer
Goods. Again, the number of requirements for senior hires spiked towards
the end of 2013 and this upward trend has continued strongly in 2014.
It’s pleasing to see that so many commercial organisations are looking
once again to staff up their tax and finance teams and look at saving third
party costs. Temporary and contract tax roles have flat lined in the last two
quarters, a sign that companies are more prepared to take on permanent
hires, again showing the strength of the economy.
So, overall the signals are exceptionally positive. Where so many reports
and reviews sit on the fence, I am more than prepared to wear my heart
on my sleeve and say, from a recruitment perspective, the market is back!
Pat Keogh
Managing Director,
Pro-Recruitment Group
Introduction
2
Meet the team
3
Tax Market Overview
4
Corporate Tax
5
R&D Tax
6
International Tax
7
Operational Taxes
7
Transfer Pricing
7
Personal Tax
8
Expatriate Tax 9
Employee Issues/Share Schemes
10
VAT
12
Heads of Tax
14
Partner 15
Benefits
15
Benefits 16
Outlook for 2014 16
Pro-Tax Recruitment Specialists | 2014
Contents
Tax Market Overview
1
Introduction
2
Are you wondering whether this guide will be of interest to you?
Wonder no more! In my view, anyone that works in tax will find something
they can take away – I know I certainly have. Anyone looking for a reflection
of where the tax market has been moving in 2013 or where they might be
going in 2014 will find this guide of particular interest.
We have observed that some of the sectors that are seeing an increase in
activity are those where there have been changes in tax legislation – many of
which we have featured in Tax Adviser magazine. For example, commenting
on the changing attributes being sought for Head of Tax roles (page 14) tax
risk management is highlighted as being key – an article we recently ran on
international payroll governance came to the same conclusion.
From a Practice point of view, the guide provides some useful insights about
where competition may start to come from in the next year (if you haven’t
experienced it already). Most noteworthy is the increasing growth of boutique
firms in specialist areas such as R&D (page 6) and VAT (page 12).
It is not all good news. On page 9 we read that expatriate tax specialists
are not in the demand they used to be – is this the first sign of the impact
of the statutory residency test?
I know that many of you will be interested in the numbers and your
reaction will no doubt be different depending on whether you are the
employee or employer!
In a year where the main stream media has tried their utmost to paint an
unattractive picture of those that provide tax advice – this guide gives us a
reassurance of the demand for tax professionals.
Chris Mattos
Editor
Tax Market Overview
Meet the team
▲
▲
▲
▲
▲
JIM HALSTEAD
Managing Director
ALISON KEOGH
Senior Manager
MARK NORTH
Senior Consultant
BEN HALL
Senior Consultant
RAJ JAGATIA
Consultant
Jim is one of the
founder Directors of the
Pro-Recruitment Group.
At Pro-Tax Jim heads up
the Commerce & Industry
Tax team, Jim focuses
at the senior end of the
market in particular Head
of Tax appointments.
Jim has nearly 30
years’ experience and
is well respected within
tax recruitment.
Alison is the Head of
the Tax Practice team,
together with her team
she focuses on recruiting
into Accountancy firms
across the UK. She has
recruited into practice
for over a decade and
has developed niches in
both R&D tax and Private
Client Tax, in particular
working closely with a
number of family offices.
Mark has over a
decade of accountancy
recruitment experience,
with the last 4 years
specialising in taxation.
A former accountant
himself, he takes time
to understand his
client’s needs which has
seen him recruit newly
qualified CTA’s through
to experienced Tax
Partners within many of
the UK’s leading firms.
Ben is a long standing
member of our Tax
Practice team. Ben
has specialised in Tax
recruitment throughout
the UK and has a real
passion for helping
candidates achieve their
ambitions. Recruiting all
levels of tax professional
from newly qualified
through to Tax Partner,
he is a true specialist who
is very well networked.
Raj is a key member
of our Commerce &
Industry Tax team. Raj
is the specialist on the
team for all levels of
in-house tax recruitment
including people who
are looking for their first
step into industry to
the more experienced
Tax professionals who
seek a more challenging
career in the FTSE 250.
●● 020 7269 6318
● jim.halstead@pro-tax.co.uk
●● 020 7269 6312
●● alison.keogh@pro-tax.co.uk
●● 020 7269 6314
●● mark.north@pro-tax.co.uk
●● 020 7269 6315
●● ben.hall@pro-tax.co.uk
▲
▲
▲
▲
SIMON MARTIN
DEL BURGO
Consultant
GRAHAM
HARGREAVES
Consultant
JENNIFER DAN
Consultant
JAMES DOWDESWELL KARLA MAIER
Consultant
Consultant
Simon works alongside
Raj on the Commerce &
Industry tax team and is
a long-standing member
who has developed
excellent client relations
with a niche that includes
technology, retail and
specialist financial services
organisations. Simon
works across the UK and
occasionally recruits on
an international level.
Graham recruits tax
professionals on our
Practice team. With a
background at a Top
10 firm Graham is well
placed to advise on
technical specifics on
tax roles and also tax
candidates whilst working
with the Big 4, Top 20 and
Independent accounting
firms in London.
Jennifer works on our
regional Tax Practice
team and specialises
in recruiting tax
professionals across
the UK into the Big 4,
Top 20 and independent
regional practices.
Jennifer is renowned
for having an extremely
personal touch when it
comes to coaching her
candidates through the
recruitment process.
James has a background
in the armed forces and
is now a specialist in
tax recruitment working
alongside Jennifer
on our regional Tax
Practice Team. James
has a fantastic ability
to manage multiple
projects simultaneously,
his organised approach
and efficient manner
ensures client and
candidate satisfaction.
Karla works on
our Commerce &
Industry Tax team and
specialises in recruiting
tax professionals
across the UK. Karla is
renowned by her clients
and candidates for
developing long‑standing
relationships and
gaining repeat business
on a regular basis
from her clients time
and time again.
●● 020 7269 6346
●● jennifer.dan@pro-tax.co.uk
●● 020 7269 6325
●● james.dowdeswell@
pro-tax.co.uk
●● 020 7269 6320
●● karla.maier@pro-tax.co.uk
●● 020 7269 6322
●● simon.martindelburgo@
pro-tax.co.uk
●● 020 7269 6321
●● graham.hargreaves@
pro-tax.co.uk
Pro-Tax Recruitment Specialists | 2014
●● 020 7269 6323
●● raj.jagatia@pro-tax.co.uk
▲
3
Tax Market Overview
4
Practice
In practice, the feeling is extremely positive. Q4 of 2013 has been an
extremely busy period with two of the Big 4 having a huge surge in
recruitment across the UK. This has considerable ramifications on the rest
of the Top 50 because the Big 4 attract talent from these firms resulting
in the beginning of a very heavy recruitment cycle. Throughout this salary
survey we will give you a true and fair reflection of our market.
Commerce & Industry
Within commerce & industry, tax compliance is a strong area for recruitment
and continues to be the main entry point for candidates wishing to move
from practice into industry and we expect to see this continue given the
ever evolving burden of legislation. Additionally there is an on-going need
for specialists in such areas as VAT and International Tax.
We expect there to be a scramble for talent over the next few years. This is
because during the recession, there has been little or no junior recruitment
which means that the traditional hunting ground is drying up and people
with a few years’ tax experience are in short supply. In the last six months
we have seen an increase in positions at the £50,000 to £60,000 salary
mark indicating that this is going to be a busy area.
Tax Market Overview
Corporate Tax
Practice
Commerce & Industry
There is a huge demand for candidates in Corporate Tax, especially
at the newly qualified level with certain teams looking for 20 or 30 new
hires. High demand areas include Reading, Birmingham and Scotland
to name but a few. For example, Scotland has seen one of the Big 4 set
up a compliance centre in Glasgow; this has seen a lot of candidates
join the business and it has then created vacancies in other firms.
We predict that 2014 will see a lot of movement from the Top 20 to
the Big 4 at all levels. We have found that the Top 10 have not adjusted
their benefits packages or their salary bandings to help them attract
or indeed keep candidates given the sudden surge of activity from
the Big 4. However, because of their flexibility the smaller boutiques
have changed their packages to help them compete with the Big
4 as have some Top 20 firms and in certain cases these will sway
candidates’ decisions.
Commerce & industry salaries continue to command a slight premium
compared with those in practice. A Tax Manager in practice could
expect a salary of £55,000 to £65,000 compared with £60,000
to £70,000 in commerce. Bonuses have formed an increasingly
substantial part of the remuneration package of those employed in
commerce and this is still the case.
As ever, certain niche areas in tax show more demand than others,
last year it was Transfer Pricing specialists. At the moment there is a
strong demand for VAT specialists. These trends will continue in line
with legislation and government focus.
Big 4 (Corporate & International Tax, R&D, Transfer Pricing & Operational Taxes)
Position
Scotland
Position
Tax Assistant
£16-27k
Tax Assistant
North East
£17-25k
Tax Senior
£28-40k
Tax Senior
£28-36k
Tax Supervisor
£35-46k
Tax Supervisor
£35-40k
Tax Manager
£50-60k
Tax Manager
£40-46k
Tax Senior Manager
£60-75k
Tax Senior Manager
£48-60k
Tax Director
£80k+
Tax Director
£75k+
Tax Partner
£180k+
Tax Partner
£150k+
Position
Position
Midlands
Tax Assistant
North West
£18-26k
Tax Assistant
£20-27k
Tax Senior
£30-37k
Tax Senior
£32-38k
Tax Supervisor
£37-42k
Tax Supervisor
£37-43k
Tax Manager
£43-50k
Tax Manager
£42-53k
Tax Senior Manager
£55-70k
Tax Senior Manager
£60-85k
Tax Director
£75k+
Tax Director
£90-130k
Tax Partner
£180k+
Tax Partner
£180k+
Position
Home Counties
Position
East Anglia
£23-30k
Tax Assistant
£20-27k
Tax Senior
£35-42k
Tax Senior
£32-38k
Tax Supervisor
£42-48k
Tax Supervisor
£37-43k
Tax Manager
£52-63k
Tax Manager
£42-53k
Tax Senior Manager
£65-95k
Tax Senior Manager
£60-85k
Tax Assistant
Tax Director
£100-165k
Tax Director
£90-130k
Tax Partner
£220k+
Tax Partner
£180k+
Position
London
Tax Assistant
£17-25k
Tax Assistant
£25-33k
Tax Senior
£28-36k
Tax Senior
£37-45k
Tax Supervisor
£35-41k
Tax Supervisor
£45-54k
Tax Manager
£40-46k
Tax Manager
£55-65k
Tax Senior Manager
£48-60k
Tax Senior Manager
£72-110k
Position
South West
Tax Director
£75k+
Tax Director
£110-200k
Tax Partner
£150k+
Tax Partner
£260k+
Pro-Tax Recruitment Specialists | 2014
5
Tax Market Overview
R&D Tax
Practice
Commerce & Industry
R&D Tax continues to see massive growth, with two or three of the Big
4 dominating in 2013. Due to the amount of recruitment in R&D in 2013,
we believe that, with a few exceptions, the market will be more settled
with teams trying to achieve a return on investment. A few key hires still
need to be made between January and June of 2014.
Boutique firms have continued to rival the Big 4, winning large
contracts and attracting talent by selling a more entrepreneurial
environment. Boutique firms will continue to hire in Q1 and Q2 of
2014 offering competitive salaries and bonus schemes that the Big
4 are unable to match. London is the hub for R&D, but Scotland, the
Midlands and the north east will see growth in 2014.
In commerce & industry, the requirement for R&D staff tends to be
the preserve of the major multinationals, particularly those with high
R&D costs such as pharmaceutical and engineering businesses.
They will have teams made up of engineers and tax specialists and
an occasional requirement for new team members. R&D in commerce
& industry does not demand a premium from a salary perspective;
what tends to attract candidates from practice into C&I is the work/
life balance but as a Recruiter we have to advise businesses that they
need to be more competitive with their packages to attract that talent
that they so require.
Mid Tier Public Practice (Corporate & International Tax, R&D, Transfer Pricing & Operational Taxes)
All salaries
London
Home Counties
Midlands
North East
North West
South West
East Anglia
Scotland
Tax Assistant
£22-28k
£21-27k
£20-27k
£17-25k
£20-27k
£17-25k
£20-27k
£16-27k
Tax Senior
£37-43k
£34-40k
£32-36k
£28-34k
£32-36k
£28-34k
£32-36k
£26-38k
Tax Supervisor
£42-46k
£40-45k
£35-40k
£33-40k
£35-40k
£33-40k
£35-42k
£35-42k
Tax Manager
£50-60k
£48-60k
£40-50k
£40-45k
£40-50k
£40-45k
£40-50k
£50-58k
Tax Senior Manager
£65-85k
£60-80k
£55-75k
£48-58k
£55-75k
£48-58k
£55-70k
£60-70k
Tax Director
£90-110k
£85-100k
£80-120k
£65k+
£80-120k
£65k+
£75-95k
£75k+
Tax Partner
£140k+
£140k+
£120k+
£115k+
£120k+
£115k+
£120k+
£145k+
Commerce & Industry (All levels)
All salaries
London
Home Counties
Midlands
North East
North West
South West
East Anglia
Scotland
Tax Assistant
£20-35k
£20-30k
£18-28k
£18-25k
£18-25k
£16-25k
£16-25k
£16-25k
Tax Accountant
£45-55k
£45-55k
£40-50k
£35-45k
£38-45k
£38-45k
£38-45k
£35-45k
Tax Manager
£60-75k
£60-75k
£52-65k
£48-65k
£48-65k
£50-65k
£48-55k
£48-65k
Group Tax Manager
£80-100k
£80-100k
£70-90k
£70-80k
£70-80k
£70-85k
£60-75k
£80-100k
Tax Director/Head of Tax
£105-135k
£100-130k
£95-120k
£90-110k
£90-110k
£90-105k
£85-110k
£90-110k
£150k+
£150k+
£150k+
£150k+
£150k+
£150k+
£150k+
£150k+
Head of Tax - FTSE 100 or Equivalent
Financial Services (Banking, Insurance, Asset Management, P/E etc)
All salaries
London
Home Counties
Midlands
North East
North West
South West
East Anglia
Scotland
Tax Associate
£25-40k
£25-40k
£25-40k
£25-40k
£25-40k
£25-40k
£25-40k
£25-40k
Tax Accountant
£60-80k
£60-80k
£55-75k
£55-75k
£55-75k
£55-75k
£50-70k
£55-75k
Vice President / Tax Manager
£70-90k
£70-90k
£65-85k
£65-85k
£65-85k
£65-85k
£60-80k
£65-85k
Associate Director
£95-115k
£95-115k
£90-110k
£90-110k
£90-110k
£90-110k
£90-110k
£95-115k
Tax Director
£120-175k
£120-175k
£120-150k
£120-150k
£120-150k
£120-150k
£120-150k
£120-175k
c £290k+
c £290k+
c £250k+
c £250k+
c £250k+
c £250k+
c £250k+
c £250k+
Managing Director
6
Pro-Tax Recruitment Specialists | 2014
Tax Market Overview
International Tax
Practice
The Big 4 and Top 10 have been quiet in the last three years; however,
given the positivity in the market we have seen a lot of growth and activity
between the firms. We have also seen people who have been trained
internationally in tax offered roles in the UK, this is due to the lack of
international tax expertise against the demand. In addition, some smaller
boutique firms are branching out into International Tax, many of whom
have a lot of inbound US clients, and this is resulting in a demand for
candidates with experience in US corporation tax.
Commerce & Industry
In the commercial sector, any business with overseas interests (whether
direct ownership or as part of a joint venture) will almost certainly have
a member of the tax team and sometimes more than one dealing with
overseas tax issues. These individuals will almost certainly have a
background to manager level working in international tax in practice or
several years’ experience in commerce. Some UK based multinationals
with UK based Global or EMEA tax teams may have one or even several
tax representatives in offices elsewhere in Europe. These may be direct
tax planning specialists with an EMEA or Global remit or alternatively
indirect tax and supply chain specialists based in these locations
alongside procurement teams. As examples, salaries at any given grade
in Amsterdam are on par with those in the UK, while in Geneva and Zurich
they can be up to 40% higher, commensurate with local cost of living.
Operational Taxes
Practice and Commerce & Industry
The demand for Operational Taxes has quietened down, and we believe
this is due to the rise of recruitment in other areas. When we spoke to
people in this area it became apparent that the demand was still there
but, given the shortage of candidates with a FATCA specialism, this will
be an on-going requirement. From a candidate perspective, individuals
can name their salary, and firms are aware of this and will pay a premium.
The C&I Financial Sector sees an on-going need for Ops Tax
specialists of whom almost all will have FATCA experience.
Transfer Pricing
Practice
Transfer pricing is present mainly in the Big 4 and Top 10 firms only.
There is a real candidate shortage in this area of tax and all firms will
pay a premium. In Q4 of 2013 we saw many firms using their work permit
allowance to employ Transfer Pricing specialists from the US, Europe and
the Middle East. When meeting a Head of Transfer Pricing at a Big 4 firm
we found they had a need for ten specialists and, to fulfil such a huge
demand, the firm will have to look outside the UK.
Commerce & Industry
Transfer pricing remains high on the agenda for Heads of Tax and FDs in
the commercial and financial sectors. Most have defensible TP policies in
place which need amending and maintaining over time. Multinationals will
almost certainly have a senior specialist in place dealing either exclusively
with Transfer Pricing or with responsibility for it as part of a wider role.
Pro-Tax Recruitment Specialists | 2014
7
Tax Market Overview
Personal Tax
Practice
Commerce & Industry
Personal Tax in Q4 became increasingly busy for the Big 4 and this
is due to new business wins rather than the tax return deadlines.
Candidates based in London at the Assistant Manager, Manager
and Senior Manager level with experience in private client advisory
are likely to be of high interest to any of the Big 4 in 2014. High level
tax advice, such as advising private equity principles, reward and
remuneration for highly paid employees, is in particular demand.
As in 2012/13, the non-domicile side of tax continues to rise
and there is no reason to suspect this will change as we move into
2014. There is a shortage of high calibre personal tax specialists at
all levels in the UK market so candidates with relevant experience can
demand a premium.
Newly qualified CTA or STEP candidates can command basic
salaries of around £41,000 to £44,000; this would include all firms from
the Big 4 to smaller boutique firms with there not being a substantial
difference in the salaries that we see being offered. Top 20 and
independent firms are recruiting in this area with some of the Top 20
firms building a team and in some instances doubling their teams,
even rivalling the Big 4 in terms of size.
Outside of the profession it is rare to find a requirement for personal
tax specialists in commerce & industry. However, there is an on-going
requirement for accountancy and legally trained private client tax
specialists in the private wealth market arena, both the independent
private wealth management businesses and the banks with teams
specialising in this area. They are almost exclusively relationship
driven roles and such organisations require experienced candidates
with a proven track record in this area.
As anticipated in our previous salary survey, there have been fewer
roles for personal tax specialists in private banks in past months.
There is an influx of law firms bringing partnership tax in-house
and although they will have an existing tax specialist, they are looking
to recruit more partnership specialists from the Big 4 and Top 20 to
help them develop their in-house department.
Big 4 (PT, Expat)
All salaries
London
Home Counties
Midlands
North East
North West
South West
East Anglia
Scotland
Tax Assistant
£23-32k
£21-28k
£18-25k
£18-26k
£17-25k
£18-26k
£18-25k
£16-25k
Tax Senior
£37-43k
£33-40k
£30-36k
£25-35k
£30-35k
£25-35k
£30-36k
£28-38k
Tax Supervisor
£42-48k
£40-46k
£35-43k
£33-38k
£35-40k
£33-38k
£35-43k
£30-42k
Tax Manager
£52-65k
£50-61k
£40-50k
£38-45k
£40-48k
£38-45k
£40-50k
£45-56k
Tax Senior Manager
£70-100k
£65-90k
£55-75k
£45-60k
£55-65k
£45-60k
£55-75k
£60-70k
Tax Director
£105-180k
£95-150k
£80-120k
£70k+
£70k+
£70k+
£80-120k
£75k+
Tax Partner
£240k+
£220k+
£150k+
£140k+
£170k+
£140k+
£150k+
£160k+
All salaries
London
Home Counties
Midlands
North East
North West
South West
East Anglia
Scotland
Tax Assistant
£21-31k
£20-26k
£18-25k
£18-23k
£17-23k
£18-23k
£18-25k
£16-22k
Tax Senior
£37-42k
£30-38k
£28-35k
£23-34k
£25-33k
£23-34k
£28-33k
£28-40k
Tax Supervisor
£40-48k
£38-45k
£35-40k
£33-36k
£33-38k
£33-36k
£35-38k
£28-40k
Tax Manager
£50-60k
£50-61k
£38-47k
£36-44k
£35-45k
£36-44k
£38-45k
£42-55k
£55-68k
Mid Tier (PT, Expat)
Tax Senior Manager
£65-80k
£60-85k
£53-72k
£45-55k
£45-60k
£45-55k
£50-70k
Tax Director
£85-110k
£85-120k
£75-110k
£65k+
£65k+
£65k+
£75-105k
£70k+
Tax Partner
£120k+
£115k+
£120k+
£120k+
£120k+
£120k+
£120k+
£145k+
Commerce & Industry (Partnership, Expat)
All salaries
London
Home Counties
Midlands
North East
North West
South West
East Anglia
Scotland
Tax Assistant (Partnership & Expatriate)
£25-35k
£23-30k
£22-30k
£22-30k
£22-30k
£22-33k
£22-33k
£20-30k
Partnership / Expatriate Tax Accountant
£40-50k
£33-47k
£32-45k
£30-40k
£30-40k
£33-41k
£33-43k
£30-38k
Partnership Tax Manager
£55-80k
£48-60k
£45-55k
£38-45k
£38-45k
£38-45k
£48-55k
£40-50k
Group Tax Manager (Partnership)
£80-100k
£70-85k
£65-75k
£60-70k
£60-70k
£60-70k
£60-70k
£55-65k
£85k+
£78k+
£68k+
£65k+
£65k+
£65k+
£65k+
£60k+
Tax Director
x
x
x
x
x
x
x
x
Head of Tax
x
x
x
x
x
x
x
x
Head of Partnership Tax Affairs
8
Pro-Tax Recruitment Specialists | 2014
Tax Market Overview
Expatriate Tax
Practice
Commerce & Industry
Expatriate tax departments are, for the first time in 12 months, not as
active as they have previously been. A lot of these teams have over
hired in the past few years and we have seen a reduction in staff in
some areas, the closing of offices for some firms and salaries at a
standstill. For the first time in a long period, expatriate tax specialists
are not in the demand they used to be. A few firms, however, have
bucked the trend and still show plenty of room for growth in 2014.
Dual handlers are still in high demand however, especially at the
Manager and Senior Manager level, who are, on average, paid 8% to
12% more than their peers who are UK specific.
Multinational businesses with mobile staff at any level invariably have
one expatriate tax specialist, usually at Manager level, as part of
their tax or HR team dealing with the tax affairs of these individuals.
Examples include the Oil & Gas and Shipping sectors where they have
a large number of staff working internationally with no fixed base, or
alternatively senior executives/Partners on secondments.
Pro-Tax Recruitment Specialists | 2014
9
Tax Market Overview
Employee Issues/Share Schemes
Practice and Commerce & Industry
Employee Issues has remained a buoyant area and includes share
schemes, equity reward, compensation and benefits, and executive
remuneration. These areas have become increasingly busy due to
businesses needing to find alternative ways of rewarding their staff in
a tax efficient way. Looking forward to 2014 there will be even more
recruitment as more than one of our clients plans to double the size
of their business, and maybe triple the size of the tax team by 2016.
The accountancy firms appreciate that it is not only tax professionals
who can advise in this area, and will happily appoint lawyers who have
worked in employment tax departments where they have devised,
designed and implemented share plans.
Big 4 (Employment, Share Schemes, Comp & Bens)
Position
Scotland
Position
North East
Tax Assistant
£16-25k
Tax Assistant
£18-26k
Tax Senior
£28-38k
Tax Senior
£25-35k
Tax Supervisor
£30-42k
Tax Supervisor
£33-38k
Tax Manager
£45-56k
Tax Manager
£38-45k
Tax Senior Manager
£60-70k
Tax Senior Manager
£45-60k
Tax Director
£75k+
Tax Director
£70k+
Tax Partner
£160k+
Tax Partner
£140k+
Position
North West
Position
Midlands
Tax Assistant
£17-25k
Tax Assistant
£18-25k
Tax Senior
£30-35k
Tax Senior
£30-36k
Tax Supervisor
£35-40k
Tax Supervisor
£35-43k
Tax Manager
£40-48k
Tax Manager
£40-50k
Tax Senior Manager
£55-65k
Tax Senior Manager
£55-75k
Tax Director
£70k+
Tax Director
£80-120k
Tax Partner
£170k+
Tax Partner
£150k+
Position
Home Counties
Position
East Anglia
Tax Assistant
£24-30k
Tax Assistant
£18-25k
Tax Senior
£35-38k
Tax Senior
£30-36k
Tax Supervisor
£38-46k
Tax Supervisor
£35-43k
Tax Manager
£50-61k
Tax Manager
£40-50k
Tax Senior Manager
£65-90k
Tax Senior Manager
£55-75k
Tax Director
£95-150k
Tax Director
£80-120k
Tax Partner
£220k+
Tax Partner
£150k+
Position
London
Tax Assistant
£18-26k
Tax Assistant
£26-33k
Tax Senior
£25-35k
Tax Senior
£39-46k
Tax Supervisor
£33-38k
Tax Supervisor
£48-52k
Tax Manager
£38-45k
Tax Manager
£53-65k
Tax Senior Manager
£45-60k
Tax Senior Manager
£72-110k
Position
South West
Tax Director
£70k+
Tax Director
£120-180k
Tax Partner
£140k+
Tax Partner
£240k+
10
Pro-Tax Recruitment Specialists | 2014
Tax Market Overview
Mid Tier (Employment, Share Schemes, Comp & Bens)
All salaries
London
Home Counties
Midlands
North East
North West
South West
East Anglia
Scotland
Tax Assistant
£24-31k
£20-26k
£18-25k
£18-23k
£17-23k
£18-23k
£18-25k
£16-22k
Tax Senior
£38-43k
£30-38k
£28-35k
£23-34k
£25-33k
£23-34k
£28-33k
£28-40k
Tax Supervisor
£45-50k
£38-45k
£35-40k
£33-36k
£33-38k
£33-36k
£35-38k
£28-40k
Tax Manager
£50-60k
£50-61k
£38-47k
£36-44k
£35-45k
£36-44k
£38-45k
£42-55k
Tax Senior Manager
£65-85k
£60-85k
£53-72k
£45-55k
£45-60k
£45-55k
£50-70k
£55-68k
Tax Director
£90-120k
£85-120k
£75-110k
£65k+
£65k+
£65k+
£75-105k
£70k+
Tax Partner
£120k+
£115k+
£120k+
£120k+
£120k+
£120k+
£120k+
£145k+
Commerce & Industry (Employment, Share Schemes, Comp & Bens)
All salaries
London
Home Counties
Midlands
North East
North West
South West
East Anglia
Scotland
Assistant
£30-40k
£25-35k
£22-30k
£20-30k
£20-30k
£22-35k
£20-30k
£20-30k
Assistant Manager
£45-60k
£40-60k
£40-60k
£40-60k
£40-60k
£45-60k
£40-60k
£40-60k
Comp & Bens Manager
£60-110k
£60-105k
£55-95k
£55-75k
£55-70k
£55-70k
£55-70k
£55-75k
x
x
x
x
x
x
x
x
£80-120k
£90-110k
£80-100k
£80-90k
£80-90k
£85-95k
£70-90k
£70-90k
£135k+
£130k+
£110k+
£100k+
£100k+
£105k+
£100k+
£110k+
Group Tax Manager
Comp & Bens Senior Manager
Comp & Bens Director
Pro-Tax Recruitment Specialists | 2014
11
Tax Market Overview
VAT
Practice and Commerce & Industry
VAT recruitment continues to be strong for the second year running.
Commerce & industry, the Big 4 and Top 20 firms are all competing for
candidates, some businesses offering higher salaries to candidates
who are under qualified for the level or salary. We have seen instances
this year of people who have been overpaid in industry and have
decided to move back into practice as the expectations at such a high
level of salary have been hard to meet. This has provided practice
with more VAT professionals who are realistic and reasonable when
it comes to how much they are to be paid. Senior Managers and
Directors from the Big 4 and Top 20 firms continue to be attracted into
VAT boutiques in a similar fashion to that of R&D. VAT boutiques are
rising in popularity offering bonuses that the Big 4 cannot match, as
well as the flexibility at nearly all levels to pitch for new business and
be more autonomous.
On an international basis indirect taxation has been seen by
governments as a means of raising revenues and has been targeted
aggressively. As a consequence there is a steady need for VAT
specialists at any grade in the commercial sector. Notably there
has also been an increase in the requirement for trade compliance
managers in the commercial sector. These individuals may well sit in a
tax team but may equally be found in legal and corporate governance
or procurement teams.
Big 4 (VAT)
Position
Scotland
Position
Tax Assistant
£16-27k
Tax Assistant
North East
£17-25k
Tax Senior
£28-40k
Tax Senior
£28-36k
Tax Supervisor
£35-46k
Tax Supervisor
£35-40k
Tax Manager
£50-60k
Tax Manager
£40-46k
Tax Senior Manager
£60-75k
Tax Senior Manager
£48-60k
Tax Director
£80k +
Tax Director
£75k+
Tax Partner
£180k +
Tax Partner
£150k+
Position
Position
Midlands
Tax Assistant
North West
£18-26k
Tax Assistant
£20-27k
Tax Senior
£30-37k
Tax Senior
£32-38k
Tax Supervisor
£37-42k
Tax Supervisor
£37-43k
Tax Manager
£43-50k
Tax Manager
£42-53k
Tax Senior Manager
£55-70k
Tax Senior Manager
£60-85k
Tax Director
£75k+
Tax Director
£90-130k
Tax Partner
£180k+
Tax Partner
£180k+
Position
Home Counties
Position
East Anglia
Tax Assistant
£23-30k
Tax Assistant
£20-27k
Tax Senior
£35-42k
Tax Senior
£32-38k
Tax Supervisor
£42-48k
Tax Supervisor
£37-43k
Tax Manager
£52-63k
Tax Manager
£42-53k
Tax Senior Manager
£65-95k
Tax Senior Manager
£60-85k
Tax Director
£100-165k
Tax Director
£90-130k
Tax Partner
£220k+
Tax Partner
£180k+
Position
London
Tax Assistant
£17-25k
Tax Assistant
£24-33k
Tax Senior
£28-36k
Tax Senior
£40-45k
Tax Supervisor
£35-41k
Tax Supervisor
£46-52k
Tax Manager
£40-46k
Tax Manager
£55-65k
Tax Senior Manager
£48-60k
Tax Senior Manager
£72-110k
Position
South West
Tax Director
£75k+
Tax Director
£120-180k
Tax Partner
£150k+
Tax Partner
£240k+
12
Pro-Tax Recruitment Specialists | 2014
Tax Market Overview
Mid Tier (VAT)
All salaries
London
Home Counties
Midlands
North East
North West
South West
East Anglia
Scotland
Tax Assistant
£23-30k
£21-27k
£20-27k
£17-25k
£20-27k
£17-25k
£20-27k
£16-27k
Tax Senior
£37-42k
£34-40k
£32-36k
£28-34k
£32-36k
£28-34k
£32-36k
£26-38k
Tax Supervisor
£44-48k
£40-45k
£35-40k
£33-40k
£35-40k
£33-40k
£35-42k
£35-42k
Tax Manager
£50-64k
£48-60k
£40-50k
£40-45k
£40-50k
£40-45k
£40-50k
£50-58k
Tax Senior Manager
£65-80k
£60-80k
£55-75k
£48-58k
£55-75k
£48-58k
£55-70k
£60-70k
Tax Director
£90-110k
£85-100k
£80-120k
£65k+
£80-120k
£65k+
£75-95k
£75k+
Tax Partner
£120k+
£140k+
£120k+
£115k+
£120k+
£115k+
£120k+
£145k+
Commerce & Industry (VAT)
All salaries
London
Home Counties
Midlands
North East
North West
South West
East Anglia
Scotland
VAT Assistant
£25-32k
£23-29k
£21-27k
£18-23k
£20-25k
£18-23k
£20-27k
£17-22k
VAT / Indirect Tax Accountant
£35-50k
£33-45k
£33-40k
£33-38k
£35-40k
£33-38k
£35-40k
£30-36k
Indirect Tax Manager
£50-70k
£45-55k
£43-55k
£45-55k
£50-55k
£45-55k
£50-60k
£47-60k
Group Indirect Tax Manager
£70-100k
£70-100k
£60k+
£60k+
£60k+
£60k+
£60k+
£62k+
VAT Director
£80-135k
£80-135k
£80k+
£80k+
£80k+
£80k+
£80k+
£80k+
Head of Tax
x
x
x
x
x
x
x
x
Pro-Tax Recruitment Specialists | 2014
13
Tax Market Overview
Heads of Tax
The requirement for senior specialists as Heads of Tax, Tax Director
and Heads of Tax and Treasury has moved from “weak” to “sporadic”
but numbers of such roles are increasing. We have seen a steady rise in
requirements with an average of one role a month coming through the
business. These originate from organisations seeking a replacement
for natural wastage, but also from companies wishing to heighten the
tax knowledge within the business, and from those looking to bring tax
in-house for the first time. The roles range from sole charge “added
value” positions, to team management roles and increasingly tax and
treasury responsibility are combined.
FDs and CFOs expect much more from a Head of Tax than pure
tax ability. A Head of Tax should have a strong commercial acumen
as well as have the ability to present alternative tax proposals to suit
various operational circumstances. Tax risk management is key and
adding value that directly drops to the bottom line is paramount.
Communication skills are crucial at any given level across the business
and incomers are expected to quickly establish credibility with the
Finance Director and the wider senior management teams.
14
Companies bringing tax in house for the first time enter the
market at different levels in terms of their requirements. Some will use
a Manager straight from practice to bring tax accounting, reporting
and compliance in house, while others may leave this work with the
advisers and bring in highly experienced big hitters who add value
from an advisory perspective looking at structuring issues, both at
macro level for the business as a whole, down to tax input in to the
structuring of specific business deals.
There is still a huge amount of caution in recruiting at this level and
candidates should be ready for a recruitment process that can take
quite some time.
Head of Tax salaries depend on sector but rough averages for
FTSE 250 and below range from £110,000 to £140,000*, FTSE 100
range from £150,000 to £200,000*. There are anomalies within financial
services and certain media and trading clients where basic salaries
can be much higher.
Pro-Tax Recruitment Specialists | 2014
Tax Market Overview
Partner
Some of the Big 4 have not had sign off for Partners in the 2013/14
budget. This will remain throughout 2014, unless a person has a healthy
fee following. However, the Top 20 is being very active and attracting
people from the Big 4 who are not making Partner. We have seen five
appointments in 2013 and we have mandates for more of the same in 2014.
There is still a very wide range of salaries for Partners within
practice but as a very rough average small practices are offering
salaries ranging from £90,000 to £130,000*, Top 20 practices are
coming in between £135,000 to £180,000*, Top 10 between £180,000
and £380,000* while the Big 4 start at £280,000 rising to £950,000*.
The average Big 4 Tax Partner is paid £510,000*.
*These salaries exclude bonus, car, and other benefits such as medical
and pension contributions that form part of a full remuneration package.
Generally basic salaries are increasing in line with inflation but rewards
via bonuses have continued or in some sectors are returning.
Benefits
Practice
Benefits are more and more important to candidates in today’s market
as salaries have remained largely static. Candidates sometimes make
a decision based on the benefits package available when two offers
are the same basic salary. In some cases we have seen offers turned
down because the benefits package is not sufficiently comprehensive.
Benefits on offer include: car allowances, flexible working, childcare
vouchers, healthcare and pension – some clients are matching 11%,
although the standard is between 4% and 8%.
The Big 4 offers healthcare at Assistant Manager level, although
other firms tend to wait until Senior Manager level. Furthermore, the
Big 4 usually extend healthcare to cover the employee’s family, which
most other firms do not.
With regard to bonuses, all of the Big 4 offer a bonus at every level
and this varies from £1,500 at Assistant Manager grade up to £20,000
at Senior Manager grade. Director and Partner bonuses are usually
based on individual and team performances.
In the Big 4 a car allowance is mostly taken as cash benefit at
Manager level and above, and ranges between £4,500 and £6,000.
When taking into account pension contributions (£2,500 average), private
medical insurance (£1,200 average), life assurance (£150 average), lunch
allowance (£700 average), the benefits on offer from a Big 4 firm can be
worth up to £10,000 in addition to the individual’s basic salary and so it is
not surprising these can form an important part of a candidate’s decision
making process. Many of the Top 10 and 20 will only give car allowance at
Senior Manager level and above which certainly does not compare with
an offer at the Big 4 especially as the salaries tend to be that little bit lower.
Some of the Big 4 put together a pie chart on the entire package giving
the candidate a complete overview of what everything is worth. Those that
do this tend to receive a higher acceptance rate than those that don’t.
Some of the larger Top 20 firms offer a flexible benefits package
with options such as childcare vouchers and gym membership.
Outside the Top 20, independent firms are offering discretionary
bonuses and over-time up to and including Manager grade, enabling
people to increase what they earn.
Pro-Tax Recruitment Specialists | 2014
15
Tax Market Overview
Benefits
Commerce & Industry
Bonuses remain an important way of rewarding staff. Most tax
specialists in commerce & industry receive bonuses. These range from
10% of basic at entry grade (tax accountants) rising to 20% to 25%
for Tax Managers to 40% for Group Tax Managers and Heads of Tax.
Bonuses in the financial sector tend to mirror the rest of commerce &
industry sector for “back office” tax staff. For key tax professionals in
the front office or trading teams, bonuses of 100% are paid and can
be as high as 200% at Managing Director and Vice President grade in
the bigger banks.
Car allowances, as opposed to actual vehicles, are prevalent
across many business sectors and the values range from £5,000 at
Tax Manager grade to £10,000 for a Head of Tax.
Most employees are offered medical cover for themselves and
sometimes their families.
Pension contributions are universal and usually on a matched
basis ranging from 4% to 20%.
Long term investment plans or some other form of profit share are
common at the senior grades, Heads of Tax and Group Tax Managers.
These are not just seen as rewards for performance but also provide
an employer with some form of “lock-in” for valued members of staff.
Other benefits include subsidised meals and car parking,
these perhaps are the exception but are nevertheless valuable
benefits when included.
Outlook for 2014
After several years of economic uncertainty, there is finally light at the
end of the tunnel. 2013 has seen the economy grow and the Bank of
England has stated that it expects the UK economy to return to its
pre-crisis growth rate of 2.8% in 2014. This optimism is reflected in
the tax recruitment market with a healthy demand for professionals in
practice and commerce and industry.
The Big 4 is a sound indicator of how the market is looking, and as
they begin to recruit in larger numbers to accommodate the expected
increase in work, there will be more movement in the Top 20 and Top
50 firms, as candidates look to progress their careers.
Overall, 2013 has been a year of growth for the tax market, and
there is a general expectation from Tax Partners and Heads of Tax that
2014 will develop in an even more positive way.
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Pro-Tax Recruitment Specialists | 2014
20-23 Greville Street London EC1N 8SS
Tel: 020 7269 6333
Email: info@pro-recruitment.co.uk
Web: www.pro-recruitment.co.uk