Tax hiring in tech: skills UK startups need but struggle to find
The tech market continues to expand, with startups scaling rapidly across the United Kingdom.
As they grow, tax is becoming a core strategic function rather than a purely compliance-driven task. From managing HMRC interactions to preparing for investment or exit, tax now touches every part of the business.
Yet despite this increasing importance, many startups and small businesses struggle to access the tech talent they need within tax. The skills gap is widening as regulatory change, digital reporting and international growth reshape expectations of the tax system.
At Brewer Morris, we see these challenges playing out across the market. Here are the key tax skills startups need and why they remain difficult to hire.
Startups need forward-looking tax expertise
Startups are moving beyond basic tax compliance. While core tasks such as managing corporation tax returns, calculating tax provisions for year-end and quarterly reporting, and VAT compliance remain essential, businesses increasingly need forward-looking advice.
Growing companies must plan for:
- Managing corporate tax exposure as revenues increase
- Structuring equity and incentive schemes for senior managers
- Supporting employment taxes for scaling teams
- Preparing for capital gains tax events and exit scenarios
This requires tax managers who understand both technical tax law and the commercial implications of decisions. Many candidates have developed their careers in large organisations, where systems are established and risk is tightly controlled.
Moving into a startup requires a different mindset, contributing to the skills gap.
The impact of UK compliance and regulation
Startups must navigate HMRC requirements, changing tax rates and the ongoing rollout of Making Tax Digital, which is transforming how taxpayers interact with the system.
For scaling businesses, this creates pressure to bring expertise in-house earlier. Priorities include:
- Maintaining accurate tax compliance
- Managing reporting across each tax year
- Avoiding unexpected tax bills
- Keeping pace with evolving tax law
Professionals with up-to-date knowledge of income tax, corporate tax and emerging regulatory requirements are increasingly valuable.
International growth creates added complexity
Many startups expand internationally early in their lifecycle which introduces further complexity, including:
- Transfer pricing requirements
- Cross-border VAT obligations
- Local tax system variations
- Managing global taxpayers
The challenge is not just technical knowledge, but finding individuals with the agility to operate in fast-moving environments. Larger organisations frequently attract this talent, leaving startups competing for a limited pool.
Tax technology and automation skills
Technology continues to reshape the tax function. Automation and artificial intelligence are increasingly central to improving efficiency, reducing risk and supporting compliance.
Startups are looking for professionals who can:
- Implement automation across reporting and compliance processes
- Work with financial systems and data
- Improve forecasting and visibility of tax liabilities
- Support digital transformation linked to Making Tax Digital
These hybrid skillsets are still rare. Candidates often bring strong technical skills or technology expertise, but not both. As a result, demand for tech-enabled tax talent continues to outstrip supply.
VAT and digital business models
For tech startups, particularly in SaaS, e-commerce and digital services, VAT remains one of the most complex areas of tax compliance.
Key challenges include:
- Managing multiple VAT jurisdictions
- Adapting to digital tax rules
- Handling platform reporting obligations
- Ensuring accurate cross-border transactions
Errors can lead to significant financial risk and reputational damage. Because of this, VAT specialists with experience in automation remain in increasingly high demand.
Commercial awareness and stakeholder influence
Startups need tax professionals who can operate as business partners, not just technical specialists. This includes the ability to:
- Explain tax implications to non-specialists
- Support board-level decision-making
- Work closely with founders and investors
- Align tax strategy with growth plans
For example, understanding how to maximise tax relief opportunities can directly impact cash flow and investment outcomes. Candidates who combine technical expertise with commercial awareness are highly sought after, but often drawn to larger organisations.
Employment tax considerations
As startups scale, employment requirements become more complex. Key areas include:
- Managing self-employed contractors and IR35
- Supporting employees with self-assessment obligations
- Advising on income tax and benefits
- Handling cross-border mobility
Mistakes can result in compliance issues with HMRC and unexpected costs. This makes experience across both corporate and employment tax increasingly valuable.
Structural pressures on the talent pipeline
The skills gap is not only driven by demand. Structural changes are also limiting the supply of tax professionals entering the market.
In recent years, several shifts within accountancy firms have reduced the flow of talent:
- Reduced graduate intake following Covid, particularly over the last few years
- Increased outsourcing of tax work to other countries
- Greater adoption of artificial intelligence reducing entry-level roles
This has narrowed the pipeline, particularly at junior and mid levels, and is starting to affect hiring across the board.
At the same time, tax is often benchmarked against broader finance roles when organisations set salaries. This creates additional challenges such as:
- Tax roles are compared to general finance positions
- The specialist nature of tax is underestimated
- Salary expectations do not reflect demand
We regularly see CFOs and finance leaders underestimate the premium required for tax expertise. In a constrained market, this makes it harder for startups to secure the talent they need.
Interim solutions and alternative hiring strategies
To address these gaps, many startups are adopting more flexible hiring strategies. Interim professionals can:
- Support peak periods such as the end of the tax year
- Assist with system and automation implementation
- Provide expertise during funding rounds
- Bridge gaps while permanent hiring continues
This approach allows businesses to access specialist skills without long-term commitment, which is particularly valuable in fast-moving sectors.
Why the skills gap persists
The shortage of tax talent is driven by a combination of factors:
- Increased demand across startups and small businesses
- Growing regulatory complexity within the tax system
- Competition from larger organisations
- Fewer professionals entering the market
- Jobseekers prioritising stability
As tax law, automation and reporting requirements continue to evolve, the gap is unlikely to close quickly.
How startups can attract the right talent
Despite the challenges, there are practical steps businesses can take:
- Position roles around impact and growth
- Highlight opportunities to build functions from the ground up
- Benchmark salaries appropriately for specialist roles
- Consider candidates with transferable skills
- Use content such as webinars to engage passive talent
Building visibility and communicating the value of these roles is key to attracting the right candidates.
Looking ahead
Tax will continue to play a central role in the growth of the tech sector. As Making Tax Digital evolves and HMRC modernises its approach, expectations on businesses will increase.
Startups need strong tax capability to manage risk, control costs such as credit card liabilities and prepare for growth.
At Brewer Morris, we work with startups across the UK to connect them with the specialist talent they need to succeed. Get in touch today to discuss how we can help.
