RICHARD CURTIS TAKES WING AND EXPLORES THE TAX OPPORTUNITIES AWAITING YOU IN THE NORTH OF ENGLAND
There is a saying that image is everything. For those in the south of the country, the old image of the north was probably terraced streets and heavy industry.
However, there is no denying that, at least since the start of the present century, all that has changed. Iconic images, perhaps most particularly of the Antony Gormley sculptures such as the Angel of the North and the figures dotted along the Mersey shoreline, rejuvenated towns and cities, improved communications and of course the close proximity of some of the best countryside, have reinvigorated our view of the north. The area is now seen as a dynamic place to live and work, forcing us to take a fresh look at the cities and countryside there.
And as we never tire of saying here at Taxation 2: ‘as in life, so in tax!’ London may have attractions for the exciting lifestyle on offer and there may also be a lingering perception that this is where all the challenging and exciting tax work takes place. But that misconception was one of the first things Mike Longman wanted to dispel when I spoke to him about the opportunities lying in wait north of the Watford Gap.
Relocating northwards
Mike is the principal of Longman Tax Recruitment and his experience is that it is the opportunity of improving quality of life that is still a major driver for tax professionals relocating away from London.
‘There can be a common misconception that if you move away from London you will have to sacrifice quality of work, but that is not the case nowadays as traditional geographic boundaries are less important’, said Mike. ‘By way of illustration, the national head of international structuring in one of the Big 4 firms is based in Manchester and the quality of work that the local team enjoys – advising both inbound and outbound clients – is second to none.
‘Similarly, it is common for northern-based private client teams to service ultra high net worth clients whose families have financial interests worldwide, with the result that the senior members of the team often travel to London, Switzerland or exotic offshore financial centres.
‘Leeds, Manchester, Liverpool and Newcastle are vibrant cities offering culture, nightlife, lots of sport – either as a participant or a spectator – and that other favourite leisure-time activity: great shopping. Add to that the fact that each of these cities is only an hour or so away from fantastic countryside (be it the Lake District, the Yorkshire Dales, the Peak District or the beautiful Northumberland coast) and the quality of life on offer is hard to beat.’
What’s happening?
Mike explained that recent months have seen a marked increase in the number of clients who are looking to recruit. ‘There is positive talk about the prospects for growth in tax and the Manchester market seems particularly upbeat. We are currently very busy working on assignments in two key areas – corporate tax specialists and
tax partners.’
Manchester is undoubtedly the country’s second financial city and the professional community is very close-knit compared to London. Most major accounting firms have substantial tax practices across the north and the region also has many dynamic regional independent firms and a good range of tax roles within legal firms and in-house with large commercial groups.
Not only that, but Mike reported that there are also many smaller firms that have offices right in the heart of some beautiful rural areas for those looking to make a complete lifestyle change.
Tax hot spots
Louise Gibson, Mike’s associate director, noted one particular career area where opportunities are coming on stream.
‘Traditionally, qualified corporate tax specialists with up to five years’ experience have been particularly sought after; but one of the most difficult aspects of the 2009 marketplace was finding new roles for strong candidates with this profile who would usually be snapped up. With the new year, it seems that this is again a growth area and various firms and in-house teams are now looking to recruit these specialists.’
Mike, who himself was formerly a tax partner in practice in Manchester, also reported increasing optimism in the sector. ‘If we use the number of tax partner vacancies that we are currently working on as a barometer of the state of the local tax market, the picture is certainly looking much rosier than it has for a while.’
Professional support
The region is also well served by the professional tax bodies and the tax profession enjoys a thriving network. The Manchester branch of the CIOT (Mike is proud to have been a former chairman) was the first regional branch and its evening lecture programme has for many years been one of the best attended around the country and regularly features eminent members of the tax bar as speakers.
The Tax Faculty of the ICAEW also recognises the importance of Manchester and has organised local technical conferences and a Young Members’ Tax Club meeting in the city.
No regrets
What about a word from a southerner who is now a ‘northerner’?
Bob Wheatcroft started his tax career with the Inland Revenue, as it then was, before – in his words – ‘defecting’ to Peat Marwick Mitchell which ultimately became KPMG. Bob’s wife hailed from Carlisle and after seven years they decided that they would like to move north. They didn’t make it to Carlisle at the first attempt and spent some time in Leeds where Bob worked for Deloitte, Haskins and Sells. They finally moved to Carlisle 20 years ago and Bob is now head of tax for Armstrong Watson, a top 30 accountancy firm.
Bob says: ‘I’ve no regrets. I sometimes miss London – and Spurs – but it’s not like the capital is on another planet. Communications to the city are good and the countryside is even better. The Lake District is nearby and we are only nine miles from Scotland; in fact some of my friends – especially those in the south – think that I do live in Scotland!’
‘Believe it or not, the north is not the industrial wasteland that some still think. We have demanding clients and are involved in complex planning work. OK, we don’t compete with the Big 4 on quoted company audits, but other than that we would expect to be giving the same level of tax advice as they do. The work here is still intellectually satisfying and we deal with insolvencies, corporate finance, IFAs and everything else that you would expect from a typical large firm of accountants.’
The firm has offices across a wide area from Leeds in the ‘south’ (well everything is relative) to Dumfries in the north.
Bob’s perception is that the region has not suffered as badly as some other areas during this recession. Furthermore, the firm has a fair number of clients in the agricultural sector, and this may be one of the steadier areas of the economy, not experiencing such extreme peaks and troughs as other industries.
Bob likes to think that the firm can provide the same tax solutions that would be expected in any other large firm and has no plans to return to the south.
The VAT angle
In the VAT field, Neil Warren also reported that there was plenty of work in the region.
‘I’ve noticed in the last few years that northern-based practitioners have been raising a lot more VAT queries to do with international issues. This seems to suggest that northern businesses are becoming very involved in overseas work, particularly related to services. This can only be a good thing for people who specialise in international tax, not just VAT. The lure of cheaper houses and the chance to watch better quality football (mentioning no names) must make it attractive for many tax people to relocate from the south to the north.’
Forging a career
Scott Gilbert was proof of the pudding (I didn’t ask if it was black) that a successful career can be forged in the north. He also started with the Revenue, leaving after 11 years to join Ernst & Young, where he worked his way up the promotional ladder from manager via senior manager, ending up in charge of the firm’s tax investigations team in the north of England, proving that you don’t always have to move to be promoted. Turning down some other offers, he decided that he would like to form his own firm, imagining that he would be working on his own.
Gilbert Tax in North Yorkshire is now a six-partner practice and other firms go to them for specialist advice.
Scott felt that too much was sometimes made of the distance of cities in the north from London, but had never found this a problem. Rail routes from Manchester and Leeds were good, as were the A1 and M62 roads. He considers that he has the best of both worlds, being able to see miles of countryside from his office, but still having plenty of demanding tax work.
Conclusion
So if you are looking for the challenge of high-quality tax work, in a stimulating working environment, there might be an angle on becoming one of the (tax) angels of the north.
