Tax – UK Finance Labour Market Trends Report, April 2025
UK Tax Hiring Surges Amid Reform and Regional Realignment
Key findings include:
- UK tax vacancies rose 14% year-on-year in Q1 2025, with demand spreading beyond London
- New fiscal policies, including higher NICs and VAT reforms, are fuelling hiring across private clients and corporate tax
- Accountancy and consulting dominate hiring activity, with Big Four firms showing sharp disparities
- Regional and sectoral shifts are reshaping the geography of tax talent demand
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Britain’s tax labour market is heating up. A sharp rise is matching Chancellor Rachel Reeves’ assertion that economic turbulence has passed in demand for tax professionals. A raft of policy changes, effective from April 2025, is prompting employers to bolster their advisory capabilities.
Employer National Insurance contributions have risen to 15%, the wage threshold has fallen to £5,000, and the end of the remittance basis has expanded the tax net. New VAT charges on private school fees and the scrapping of exemptions for electric vehicles further complicate the tax landscape.
In this context, Q1 tax vacancies increased 14% year-over-year and 19% quarter-over-quarter. While London is forecast to host 1,392 roles, the regions are growing faster, accounting for 61% of projected openings nationwide.
In-Demand Skills Reflect a More Complex Tax Environment
The composition of tax roles is evolving as employers confront a broader range of regulatory and geopolitical challenges. Generalist tax vacancies remain the largest category, set to hit 2,036 this year—an 11% increase that accounts for 58% of the total.
Corporate tax continues to expand, increasing by 25% year-over-year to 512 roles, amid growing pressure on corporate structures and compliance burdens. Transfer pricing, although smaller in volume, is forecast to surge by 50% to 204 vacancies, highlighting a rising demand for cross-border expertise.
Indirect tax, mainly driven by VAT reform, is expected to grow 23%, now making up 8% of tax vacancies. Though London remains dominant, growth is strongest in the East Midlands, West Midlands, and North West, where vacancy numbers are rising by 23% to 29%.
Sectors Split: Consulting Surges, Legal and Banking Retreat
Sectoral dynamics are diverging. Professional services continue to dominate, with tax vacancies in accounting and consulting projected to rise 26% to 2,296 roles, claiming nearly two-thirds of the market.
Retail and consumer goods are forecast to grow 27%, as firms seek in-house specialists to manage shifting tax obligations. Insurance is set to rebound by 22% after several flat years.
By contrast, banking is forecast to contract 9%, as institutions hold steady in the face of uncertainty. Legal firms face the steepest cut, with hiring expected to fall 41%, while technology, media, and telecoms are also in decline. These shifts reflect where firms see risk and where they see opportunity.
William Hepworth – Principal Consultant – Taxation, Morgan McKinley commented:
“One of the most notable trends across the sector in 2025 is the increased demand for tax professionals with Financial Services client experience, particularly in Corporate Tax, VAT, and Transfer Pricing. KPMG has emerged as a leader in recruitment activity, with a high volume of growth-driven vacancies spanning all areas of Tax. This reflects broader expectations within the Big 4 of a recovering deals market – though the rebound has been more gradual than predicted, likely due to continued uncertainty linked to the U.S. political climate.”
Diverging Strategies Among Firms Reveal the Shape of Recovery
The tax hiring landscape is marked by strategic divergence. KPMG leads the market with 296 projected roles in 2025, up 66% from last year. Deloitte is expected to grow hiring by 125%, recovering from a period of restructuring with renewed investment in ESG and digital services.
Mid-tier firms are capitalising on the moment. RSM is forecast to post a 155% increase, while PKF Francis Clark is set for 33% growth, bolstered by demand in energy and advisory fields.
Not all players are expanding. PwC is set to reduce tax hiring by 24%, and EY remains flat. In a market shaped by complexity and reform, agility appears to be the most valuable asset.
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