Tax Recruitment Trends 2025: Mastering the New Talent Landscape
The battle for top tax talent in 2025 is fierce, innovative, and shaped by fresh market realities. Firms must ditch legacy strategies in favour of a candidate centric, data driven approach if they wish to build resilient tax teams for the future.
Market Overview and Strategic Caution
UK tax recruitment is resilient, with vacancies up 14% year-over-year in Q1 2025. Regional hiring now accounts for over 61% of projected roles as firms diversify outside of London, driven by fiscal reforms (higher NICs, VAT on private schools, EV tax changes). Professional services, especially consulting and accountancy, led growth with a 26% rise in vacancies, contrasting banking (-9%) and legal (-41%) sectors where hiring contracted. Key skills are in corporate tax (growth of 25%) and transfer pricing (up 50% in vacancies).
Recommendation: Employers should focus their hiring strategies on regional expansion, candidate engagement, and sector-specific skillsets, responding proactively to fiscal reforms.
Flexibility and Culture: Dealbreakers, Not Perks
Hybrid working is the norm; regional firms and mid-tiers are winning talent by offering genuine flexibility—and transparency on how it functions in reality. Rigid office mandates or token policies are now seen as a critical barrier, particularly for manager and senior manager roles where experienced professionals seek autonomy.
Recommendation: Communicate a clearly defined flexibility policy in job adverts and during interviews, with testimonials or metrics about team satisfaction.
Two-Way Process: Candidates Vet Firms
Candidates are rigorously assessing firms’ culture, leadership, and career paths. Longer, opaque interview stages now lose top applicants who expect rapid, streamlined recruitment—preferably two stages and clear feedback. Demand for specialist tax skills (VAT, transfer pricing, equity & reward, employment tax) remains robust, with shortages at senior levels due to industry transitions.
Recommendation: Empower recruiters and interviewers to ‘sell’ your opportunity, highlighting culture and growth prospects, and ensure communication is prompt and constructive.
Competitive Compensation and Salary Benchmarks
Salaries continue to rise—average earnings in the private sector grew by 4.8% year-over-year as of June 2025. Specific benchmarks:
CTA-qualified Managers in London: £65,000–£80,000+
Senior Managers (niche expertise): £90,000–£110,000+
Regional markets rapidly catching up, especially for hybrid/in-house tax roles.
But more than salary, candidates value transparent progression, direct client exposure, and work-life balance. A “competitive compensation package” now demands clarity on bonuses, benefits, and career mobility as hiring shifts regionally and in-house.
Recommendation: Publish salary ranges and bonus details; showcase career pathways and autonomy in job specs.
Strategic Mobility: Why Talent Moves
Tax professionals today move for:
Strong cultural alignment
Direct client impact
Clear progression
Leadership trust and mentorship
Improved flexibility
Recommendation: Highlight these elements in job descriptions and firm profiles.
Proactive Talent Acquisition
Hiring reactively leads to rushed, suboptimal decisions. Forward-thinking firms are prioritising pipeline development, readiness to engage exceptional passive candidates, and deploying real-time market intelligence. The most successful teams anticipate needs months ahead, ensuring robust vetting and stronger hires.
Recommendation: Invest in data analytics, market mapping, and build relationships before roles become vacant.
Up-to-Date Labour Market and Salary Data (2025)
MetricValue/ChangeSourceUK Tax Vacancies (Q1 2025)+14% YoY (projected total: 2,036 generalist roles)Regional Share of New Roles61% (faster growth than London)Professional Services Growth+26% vacancies (accountancy, consulting)Average Earnings Growth4.8% private sector; 5.7% public sector (YoY)UK Employment Rate75.3% (Apr–Jun 2025)Economic Inactivity Rate21%PAYE Salary Tax Threshold£12,570/year; 20% basic, 40% higher, 45% add’l ratePermanent PlacementsDown 5.8% quarter-on-quarter (May–Jul 2025)
Final Thoughts and Actions
Tax recruitment in 2025 demands proactive strategy, streamlined process, genuine flexibility, and transparency. Invest in market analytics, communicate boldly, and ensure every candidate touchpoint sells your unique value proposition.
For tailored, data driven support, consider partnering with a specialist agency that knows the sector inside out..