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 Contents Pro-Tax Recruitment Specialists 2014 1
Introduction 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 2
Meet the team JIM HALSTEAD Managing Director 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. 020 7269 6318 jim.halstead@pro-tax.co.uk ALISON KEOGH Senior Manager 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. 020 7269 6312 alison.keogh@pro-tax.co.uk MARK NORTH Senior Consultant 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. 020 7269 6314 mark.north@pro-tax.co.uk BEN HALL Senior Consultant 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, he is a true specialist who is very well networked. 020 7269 6315 ben.hall@pro-tax.co.uk RAJ JAGATIA Consultant 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 6323 raj.jagatia@pro-tax.co.uk SIMON MARTIN DEL BURGO 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. 020 7269 6322 simon.martindelburgo@ pro-tax.co.uk GRAHAM HARGREAVES Consultant 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. 020 7269 6321 graham.hargreaves@ pro-tax.co.uk JENNIFER DAN Consultant 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. 020 7269 6346 jennifer.dan@pro-tax.co.uk JAMES DOWDESWELL Consultant 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. 020 7269 6325 james.dowdeswell@ pro-tax.co.uk KARLA MAIER Consultant 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 6320 karla.maier@pro-tax.co.uk Pro-Tax Recruitment Specialists 2014 3
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. 4
Corporate Tax Practice 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 Commerce & industry salaries continue to command a slight premium compared with those in practice. A 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) Scotland North East 16-27k 17-25k 28-40k 28-36k 35-46k 35-40k 50-60k 40-46k Manager 60-75k Manager 48-60k 80k+ 75k+ 180k+ 150k+ North West Midlands 18-26k 20-27k 30-37k 32-38k 37-42k 37-43k 43-50k 42-53k Manager 55-70k Manager 60-85k 75k+ 90-130k 180k+ 180k+ Home Counties East Anglia 23-30k 20-27k 35-42k 32-38k 42-48k 37-43k 52-63k 42-53k Manager 65-95k Manager 60-85k 100-165k 90-130k 220k+ 180k+ South West London 17-25k 25-33k 28-36k 37-45k 35-41k 45-54k 40-46k 55-65k Manager 48-60k Manager 72-110k 75k+ 110-200k 150k+ 260k+ Pro-Tax Recruitment Specialists 2014 5
R&D Tax Practice 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. Commerce & Industry 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 22-28k 21-27k 20-27k 17-25k 20-27k 17-25k 20-27k 16-27k 37-43k 34-40k 32-36k 28-34k 32-36k 28-34k 32-36k 26-38k 42-46k 40-45k 35-40k 33-40k 35-40k 33-40k 35-42k 35-42k 50-60k 48-60k 40-50k 40-45k 40-50k 40-45k 40-50k 50-58k Manager 65-85k 60-80k 55-75k 48-58k 55-75k 48-58k 55-70k 60-70k 90-110k 85-100k 80-120k 65k+ 80-120k 65k+ 75-95k 75k+ 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 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 60-75k 60-75k 52-65k 48-65k 48-65k 50-65k 48-55k 48-65k Group 80-100k 80-100k 70-90k 70-80k 70-80k 70-85k 60-75k 80-100k /Head of Tax 105-135k 100-130k 95-120k 90-110k 90-110k 90-105k 85-110k 90-110k Head of Tax - FTSE 100 or Equivalent 150k+ 150k+ 150k+ 150k+ 150k+ 150k+ 150k+ 150k+ 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 / 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 120-175k 120-175k 120-150k 120-150k 120-150k 120-150k 120-150k 120-175k Managing Director c 290k+ c 290k+ c 250k+ c 250k+ c 250k+ c 250k+ c 250k+ c 250k+ 6 Pro-Tax Recruitment Specialists 2014
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
Personal Tax Practice 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. Commerce & Industry 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 23-32k 21-28k 18-25k 18-26k 17-25k 18-26k 18-25k 16-25k 37-43k 33-40k 30-36k 25-35k 30-35k 25-35k 30-36k 28-38k 42-48k 40-46k 35-43k 33-38k 35-40k 33-38k 35-43k 30-42k 52-65k 50-61k 40-50k 38-45k 40-48k 38-45k 40-50k 45-56k Manager 70-100k 65-90k 55-75k 45-60k 55-65k 45-60k 55-75k 60-70k 105-180k 95-150k 80-120k 70k+ 70k+ 70k+ 80-120k 75k+ 240k+ 220k+ 150k+ 140k+ 170k+ 140k+ 150k+ 160k+ Mid Tier (PT, Expat) All salaries London Home Counties Midlands North East North West South West East Anglia Scotland 21-31k 20-26k 18-25k 18-23k 17-23k 18-23k 18-25k 16-22k 37-42k 30-38k 28-35k 23-34k 25-33k 23-34k 28-33k 28-40k 40-48k 38-45k 35-40k 33-36k 33-38k 33-36k 35-38k 28-40k 50-60k 50-61k 38-47k 36-44k 35-45k 36-44k 38-45k 42-55k Manager 65-80k 60-85k 53-72k 45-55k 45-60k 45-55k 50-70k 55-68k 85-110k 85-120k 75-110k 65k+ 65k+ 65k+ 75-105k 70k+ 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 (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 55-80k 48-60k 45-55k 38-45k 38-45k 38-45k 48-55k 40-50k Group (Partnership) 80-100k 70-85k 65-75k 60-70k 60-70k 60-70k 60-70k 55-65k Head of Partnership Tax Affairs 85k+ 78k+ 68k+ 65k+ 65k+ 65k+ 65k+ 60k+ x x x x x x x x Head of Tax x x x x x x x x 8 Pro-Tax Recruitment Specialists 2014
Expatriate Tax Practice 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. Commerce & Industry 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
Employee Issues/Share Schemes Practice and Commerce & Industry Employee Issues has remained a buoyant area and includes share of their business, and maybe triple the size of the tax team by 2016. schemes, equity reward, compensation and benefits, and executive The accountancy firms appreciate that it is not only tax professionals remuneration. These areas have become increasingly busy due to who can advise in this area, and will happily appoint lawyers who have businesses needing to find alternative ways of rewarding their staff in worked in employment tax departments where they have devised, a tax efficient way. Looking forward to 2014 there will be even more designed and implemented share plans. recruitment as more than one of our clients plans to double the size Big 4 (Employment, Share Schemes, Comp & Bens) Scotland North East 16-25k 18-26k 28-38k 25-35k 30-42k 33-38k 45-56k 38-45k Manager 60-70k Manager 45-60k 75k+ 70k+ 160k+ 140k+ North West Midlands 17-25k 18-25k 30-35k 30-36k 35-40k 35-43k 40-48k 40-50k Manager 55-65k Manager 55-75k 70k+ 80-120k 170k+ 150k+ Home Counties East Anglia 24-30k 18-25k 35-38k 30-36k 38-46k 35-43k 50-61k 40-50k Manager 65-90k Manager 55-75k 95-150k 80-120k 220k+ 150k+ South West London 18-26k 26-33k 25-35k 39-46k 33-38k 48-52k 38-45k 53-65k Manager 45-60k Manager 72-110k 70k+ 120-180k 140k+ 240k+ 10 Pro-Tax Recruitment Specialists 2014
Mid Tier (Employment, Share Schemes, Comp & Bens) All salaries London Home Counties Midlands North East North West South West East Anglia Scotland 24-31k 20-26k 18-25k 18-23k 17-23k 18-23k 18-25k 16-22k 38-43k 30-38k 28-35k 23-34k 25-33k 23-34k 28-33k 28-40k 45-50k 38-45k 35-40k 33-36k 33-38k 33-36k 35-38k 28-40k 50-60k 50-61k 38-47k 36-44k 35-45k 36-44k 38-45k 42-55k Manager 65-85k 60-85k 53-72k 45-55k 45-60k 45-55k 50-70k 55-68k 90-120k 85-120k 75-110k 65k+ 65k+ 65k+ 75-105k 70k+ 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 Group x x x x x x x x Comp & Bens Senior Manager 80-120k 90-110k 80-100k 80-90k 80-90k 85-95k 70-90k 70-90k Comp & Bens Director 135k+ 130k+ 110k+ 100k+ 100k+ 105k+ 100k+ 110k+ Pro-Tax Recruitment Specialists 2014 11
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) Scotland North East 16-27k 17-25k 28-40k 28-36k 35-46k 35-40k 50-60k 40-46k Manager 60-75k Manager 48-60k 80k + 180k + 75k+ 150k+ North West Midlands 18-26k 20-27k 30-37k 32-38k 37-42k 37-43k 43-50k 42-53k Manager 55-70k Manager 60-85k 75k+ 90-130k 180k+ 180k+ Home Counties East Anglia 23-30k 20-27k 35-42k 32-38k 42-48k 37-43k 52-63k 42-53k Manager 65-95k Manager 60-85k 100-165k 90-130k 220k+ 180k+ South West London 17-25k 24-33k 28-36k 40-45k 35-41k 46-52k 40-46k 55-65k Manager 48-60k Manager 72-110k 75k+ 120-180k 150k+ 240k+ 12 Pro-Tax Recruitment Specialists 2014
Mid Tier (VAT) All salaries London Home Counties Midlands North East North West South West East Anglia Scotland 23-30k 21-27k 20-27k 17-25k 20-27k 17-25k 20-27k 16-27k 37-42k 34-40k 32-36k 28-34k 32-36k 28-34k 32-36k 26-38k 44-48k 40-45k 35-40k 33-40k 35-40k 33-40k 35-42k 35-42k 50-64k 48-60k 40-50k 40-45k 40-50k 40-45k 40-50k 50-58k Manager 65-80k 60-80k 55-75k 48-58k 55-75k 48-58k 55-70k 60-70k 90-110k 85-100k 80-120k 65k+ 80-120k 65k+ 75-95k 75k+ 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 50-70k 45-55k 43-55k 45-55k 50-55k 45-55k 50-60k 47-60k Group Indirect 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
Heads of Tax The requirement for senior specialists as Heads of Tax, 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. 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. 14 Pro-Tax Recruitment Specialists 2014
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 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
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 s to 40% for Group s 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 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 s. 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 s and Heads of Tax that 2014 will develop in an even more positive way. 16 Pro-Tax Recruitment Specialists 2014
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