Personal Tax Market Report, Q1 2023

Good news – the busy season is over for another year and this quarter we’ve seen:

• 293 professionals gained their CTA qualification
• 1,014 passed their ATT papers
• The removal of the standard Lifetime Allowance limit for pensions
• The annual tax-free pension contribution limit increased to £60K
• And a stronger-than-expected increase in GDP during January

What trends have we seen in the job market?

The battle for talent’ is something we speak a lot about in recruitment, however, it seems the talent war could be returning to a slightly more peaceful state as firms adapt but skill gaps remain.

In response to the wider economic climate, salaries continue to rise, benefits packages are under review and employee attraction is more important than ever. On this note, it would be prudent to highlight that Harvey John Tax are due to release their tailored Direct Tax Salary Guide in Q2, where we’ll explore all of the remuneration trends across personal tax, employment tax, and global mobility. You can register your interest here.

Staying on the theme of positive changes in the market, new job openings are being created with much more care, and the quality of work keeps getting better.

Personal Tax

As expected, Q1 presented a dip in new roles from junior level to senior positions, however, a slight uptake was recorded in February and March. As we welcome Spring – typically a more active hiring and investment period – it’s likely that the number of opportunities will rise further.

Notably, although it’s been a calmer market over the last three months, the job flow from Assistant Manager right up to Director and Partner has remained robust.

Employment Taxes

International Employment/Global Mobility/Expat Tax is probably the slowest area of the personal taxes job market. Currently, there is a high volume of job seekers, with a low volume of jobs. I’d argue that this is for two main reasons.

Remote working will reduce the need for relocation
There are many software packages that can automate a lot of the Employment Tax/Modified payroll process.

Whilst these factors have been in play for a while now, the impact has become more visible in the market.

UK Domestic Employment Tax remains steady and is still very much a job seekers market.

The mid-tier continues to create mixed roles, whilst The Top 10 continues to create more specialist roles for areas such as Share Schemes & Incentives.

In-house

In-house remains a rarity for personal taxes this quarter. Employment Tax and Global Mobility in-house roles have been almost exclusively within the largest multinationals/banks.

Private Client roles are still very rare, and only really exist within law firms, family offices, and private banks. However, I have noticed an increased demand from a candidate perspective. More so than in previous quarters. This means competition will be fiercer than ever.

Before looking in-house, it may be worth examining what you don’t like about your practice role a little further. There could still be great opportunities within practice that fix a few of these problems.

What can we expect for personal and employment tax recruitment in Q2?

Inflation and the cost of living continue to rise, therefore salaries will continue to be a big issue.  Q2 is where most firms will carry out salary/promotion reviews. Expect some movement in the market.

Despite (and perhaps in spite of) a shaky economic climate, firms are still reporting increased demand for tax advisory services. This should continue in Q2.

For more advice on the market & how to get the best out of your personal tax career, feel free to reach out to our tax team.