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Overview of the Financial Services sector 2017

Matthew Gravelle Tax in Banking & Financial Services, Market Insight

Despite the consequences of Brexit still not fully known, 2017 has seen a significant increase in recruitment within all areas of tax, specifically at the Tax Manager and Head of Tax. The salary for a Head of Tax is very broad and can vary from £120,000 to £300,000 (or more in some organisations). The salary range does depend on several factors including: size of the organisation, the complexity of tax within the group and,
most importantly, the value the CFO places on the Head of Tax. One of the biggest shifts within financial services recruitment has been at the entry level. A lot of in-house tax functions have either outsourced or off-shored the more basic compliance work meaning the entry level role now requires a more experienced candidate to manage this process. The other knock-on effect of this compliance work being outsourced or off-shored is that it
has freed up a lot of time for the tax team to spend on valueadd work.

The Big 4 have also moved a lot of the compliance work to low-cost areas which has created a lack of candidates with the sought-after compliance background. This lack of supply coupled with the increased demand has resulted in a more challenging process to attract the right talent, an increasing number of buybacks when candidates resign and organisations paying over market rate which has, in turn, inflated the market rate. We are seeing organisations make offers anywhere between £60,000 to £85,000 for Tax Managers where previously this would have been £55,000 to £65,000. Due to this increase, we are trying to partner, as often as possible, with HR and Heads of Tax to benchmark the roles before they have been signed-off at salary ranges below the new market-rate.