Tax Jobs, Taxation Job Search

PRACTICE OR IN-HOUSE TAX: WHICH IS RIGHT FOR YOU?

As a tax professional, you will inevitably come up against the decision of whether to build a career in practice or to move into an industry role. But, how do you know which route is the right one for you to take? Both have their pros and cons, and your decision will ultimately come down to what type of person you are, what is important to you in your career, and your long-term goals. Making this decision can often be difficult as roles in practice and industry both have a lot to offer, but our specialist tax recruiters have put together key advice to help you make an informed decision! Type of Work The type of work can differ quite significantly between tax roles in practice and in commercial business’ and the type of work your role will entail will depend on the company. In practice you are likely to specialise in one specific area, whether this is corporate tax, investigations, personal tax or VAT etc. A positive of this is you become a real deep tax specialist and have the ability to work on a variety of clients, often in varying sectors. On the other hand, working in-house allows you to fully immerse yourself in one business and look at the company in its entirety. You will be working in a more commercial role and get closer to the business and see how different departments interact, such as legal, sales, finance and tax, and in this way, an in-house tax position can perhaps offer a broader role. Another point to consider is whether you are looking for a role that is highly client-facing. If this is the case and client interactions are something you enjoy, a role in practice is likely to suit you. However, with this also comes client pressures. Timesheets and billings are a necessary part of a tax role in practice and is one of the biggest reasons why people choose to move in-house. Due to the nature of an in-house role, it is rare that you will have timesheets or financial targets, and typically you will have more autonomy over your work, with your working environment often more relaxed due to the absence of client pressures. Click here to read more about business development within practice and in-house. Salary & Benefits When it comes to benefits, a role in a well-established practice with defined risk & reward teams will see you receive a healthy remuneration and benefits package. Working for a commercial business, whether this is a FTSE 100, US-listed or Fortune 500 business, you will receive not only a good remuneration package but also additional benefits including flexible working and commercial discounts. Differences in salary between in-house and tax practice roles depends on the level you reach within your company. Initially, although you may be willing to take a pay drop to move in-house there is often no need to, as a move in-house typically comes with a 10-20% pay increase and a premium. As a general rule, you will always be better paid within industry up until a certain point, which is when it comes to Partner vs. Head of Tax. Working in practice as a Partner will always outstrip the earnings of a Head of Tax in a commercial business, although of course there are always exceptions to the rule. Therefore, when considering which path to take it is important to consider your long term career goals and whether your ambition is to end up as a Partner or Head of Tax. Working Hours Working hours tend to be better with in-house tax roles as opposed to in practice. There are usually smaller teams with a collaborative working pattern as opposed to the larger structured teams you often find in practice. Additionally, client responsibilities with a role in practice mean you need to be on call and meet clients, whereas in-house roles can offer better flexibility and opportunities to work from home, as well as regular working hours and less late nights, allowing for a better work-life balance. Click here to find out more about what large tax practices are doing to improve this. Progression Prospects Working in-house gives you the opportunity to move around the business, both across and upwards. You will work in a smaller team which gives you more responsibility in your role which will only broaden your prospects in the future, and there can be good opportunities for progression as in-house teams tend to have less of a rigid structure than tax teams in a large practice. However, in some circumstances it can be difficult to move upwards - ultimately, it depends on the company. While some large commercial companies, like those in the oil or automotive industry, have huge tax teams with structure and great progression opportunities, other companies have very small or even one-person tax teams. While this gives you more autonomy in your role, the opportunity to work closely with the Head of Tax or Director and exposure to different services lines within the company, this can also limit your opportunity to progress within the company itself. On the flip side, working in tax practice typically offers a clear and structured progression route. You will be in a position where if you hit business development and financial targets and pass your qualifications, you will move up the chain. Whilst an in-house role could potentially be a stand-alone position with limited resources to call upon, in practice, you are surrounded by technical expertise and talent. You will be working at the forefront of changes in legislation and therefore a role in practice provides you with excellent learning opportunities, as well as good progression prospects. Ease of Finding a New Opportunity It is relatively easy to move from practice to an in-house role, particularly if you are newly qualified and coming from one of the Big 4 or Top 10 as you will be highly sought after. Once you have in-house experience, you will find other doors open for you to take a step-up role in another commercial business, as some positions will require relevant experience. One of the main benefits of working in-house is the opportunity to work for a household brand or in an industry you’re interested in, whether this is retail, media, construction, automotive or telecoms, to name a few. How difficult is it to move back into practice once you’ve moved into a commercial business? Find out more here. Ultimately, your decision will come down to what type of work suits you and what you want from your career as a tax professional. If you are looking for a role within a company whose brand and household name excites you, and where you will have a broad, autonomous role and opportunities for flexible working, then a role in industry may suit you. On the other hand, if you are looking for a client facing role that sees you working on business development and at the forefront of changes in legislation, with clearly defined learning and progression opportunities, you should pursue a tax role in practice. For more information on this article, or for advice on your next career move into either a tax practice role or a position in-house, contact Marianne on 020 7269 6319 or marianne.wills@pro-tax.co.uk.

Scotland’s financial sector facing “perfect storm”

SCOTLAND’S top financial services recruiter is warning of an impending crisis threatening to hit critical sectors ahead of the launch of the industry’s most comprehensive salary guide. Core-Asset Consulting is set to reveal that while wages remain stable, overall firms must urgently adapt to a number of potentially existential issues. The 53-page white paper, now in its eighth year and scheduled to be revealed in full next week, is based on annual research of 4000 registering candidates, as well as hundreds of job offers and placements - and has been endorsed by a leading expert at the University of Edinburgh Business School. Within it, the specialist recruiter is calling on firms to take a longer-term perspective on a range industry head-winds. At the forefront is succession planning, which it states is the “unintended casualty of headcount reduction”. This is highlighted by the number of mid-level management vacancies generically dropping by more than 15% during the last 18-24 months, while general candidate availability has increased by 25-33%, incorporating passive job seekers. Core-Asset’s research and insights also highlight a sea-change in the importance of environmental and social governance (ESG), with good practice no longer a nice to have or a trend, and now a factor which will materially impact business success across all sectors. Similarly, the £14.7 million turnover firm is suggesting that organisations in Scotland are placing too little focus on culture and work life balance, alienating individuals who are increasingly demanding flexible working, compassionate leave opportunities and a demonstrably supportive office environment. Betsy Williamson, Founder and Managing Director with Core-Asset, said; “It’s been a turbulent time across a financial services and investments with the industry facing a huge amount of consolidation and change. “A big impact of the buy-outs and cost-cutting is the reactionary decision to take a red line through layers of middle management. Clearly these decisions aren’t taken lightly, however the affected employees are tomorrow’s leaders, who to reach the top require nurturing. “Without a healthy middle management, we simply limit our ability to retain the best possible successors to Director and c-suite positions. “This was already a small pool, feeling the effects a decade on from the last recession’s swingeing cuts to graduate recruitment, so we’d urge extreme caution going forward.” John Millar, Doctoral Researcher with the University of Edinburgh Business School, assisted throughout the process of the creation of the guide, providing extensive academic insight. He said: “Core-Asset’s salary guide pinpoints a number of topics that should be swiftly moving to the top of boards’ priority lists. “While the economy is performing well – or at least is not in recession – it is particularly important that we implement bold and brave changes. “The worry is that this isn’t happening and that there is complacency across the sector throughout the three key topic areas of succession planning, ESG and culture, highlighted by Core-Asset. “Within financial services there are also worrying trends within practice areas. For asset management in particular, the pie is shrinking as older generations take out more than younger generations are putting in. In addition, a big move towards passive and away from active fund management is placing real downward pressure on fees and profitability, resulting in cost-cutting programmes. “We’re also seeing tangible pressure being put on firms to demonstrate how they are benefiting society, from campaigners, the media, candidates and clients. For operators who have chased high profits and targets, these habits can be almost impossible to break. “It is truly a fascinating time to study the overall financial services sector – and I hope that the clear warnings in this salary guide stir many into action, for the long-term health of the economy.” Betsy added: “There are worrying signs that standard operating models from days gone by and increasing global competition are putting the industry here in Scotland at odds with the modern workforce. “In 2020, companies taking a narrow view around incentives, assuming salary is the only way to ensure strong employee retention, are likely to find themselves haemorrhaging top employees. “All of these issues are interlinked – they speak of a lack of long-term thinking around talent management. “Scotland has earned a strong reputation for its mature, competent financial sector. It is critical for our nation’s economic health that it continues to deliver, while rising to these clear challenges.” From the outset, Core-Asset carved its reputation within Scotland’s globally renowned asset management sector. However, the success of its model allowed it to expand across the wider financial services market. It now boasts dedicated accounting, investment operations and finance teams and also works in Scotland’s thriving legal sector. Its teams pride themselves on fully understanding client briefs thanks to being intimately associated with their specialist sectors and - by combining that with the latest tools and systems - can source the exact talent to thrive in the role. Formed in 2005, now 30-strong Core-Asset was born out of Betsy’s desire to take the best of her experience of large corporate recruiters, applying the focus on infrastructure and training to a more sector-specialised business. It proved both an instant and enduring success, with the business securing market dominance north of the border. Core-Asset Consulting is a leading independent recruitment company dedicated to financial and professional services in Scotland. A specialist recruiter based in Edinburgh, it offers its clients tailored solutions for permanent, temporary, contract and interim positions. For more information on Core-Asset Consulting, please visit: http://www.core-asset.co.uk/

Search the Latest Jobs in Tax

Browse Jobs
by Discipline

Popular
Job Titles

Popular
Locations

Premium Jobs

Job of The Week

Recruitment Consultant

Direct Employer

Upload CV

Job Alerts

Our Partner Magazines

News, Insights and Advice