Our quarterly analysis of the UK tax recruitment market: hiring trends, salary movements, skill shortages, and what firms are planning for the next quarter.
The first quarter of 2026 has seen continued strength in the UK tax recruitment market, with demand for qualified professionals remaining high across all major specialisms. Here is our analysis of the key trends, movements, and outlook.
Overall Market Conditions
The UK tax recruitment market remains candidate-driven in Q1 2026. Firms across the board, from Big 4 to boutique practices, from Magic Circle law firms to FTSE in-house teams, are competing for a limited pool of qualified tax professionals. The fundamental supply-demand imbalance that has characterised the market since 2023 shows no sign of easing.
We have seen a 15% increase in the number of active briefs compared to Q1 2025, while the number of actively looking candidates has remained broadly flat. The result is predictable: longer time-to-hire, higher salary expectations, and an increasing willingness from firms to consider candidates who do not tick every box on the specification.
Specialism-Level Analysis
Private Client Tax remains the tightest market. Demand for qualified private client tax professionals at senior manager and director level significantly exceeds supply. The ongoing complexity around IHT reform, non-dom changes, and trust taxation continues to drive hiring, while the pool of genuinely experienced private client advisors remains small. We are seeing salary increases of 8–12% for candidates moving roles in this specialism.
Corporate Tax demand is strong but more balanced than private client. The Big 4 continue to hire at volume at manager level, while in-house corporate tax teams at FTSE companies are recruiting selectively for senior roles. Advisory-focused corporate tax professionals are in higher demand than compliance specialists.
Transfer Pricing continues to be the fastest-growing specialism. OECD Pillar Two implementation has created sustained demand for TP professionals with strong technical knowledge and international experience. We have seen a 25% increase in TP briefs compared to the same period last year. Salaries at manager level have increased notably, with experienced TP managers now commanding £65,000–£85,000 at top-tier firms.
Partnership Tax remains niche but critical. The small number of genuinely specialist partnership tax professionals in the market means that when a firm needs to hire in this area, it is often a protracted and competitive process. We have seen firms offer significant salary premiums, sometimes 20% above market, to secure the right candidate.
M&A and Deals Tax demand is closely tied to transaction volumes. With PE deal activity recovering through late 2025 and into 2026, demand for transaction tax professionals has strengthened. Big 4 firms and mid-tier advisory practices are both actively hiring at manager and senior manager level.
Salary Trends
Across all specialisms, we are seeing average salary increases of 5–8% for candidates moving roles, with premiums of up to 15% for candidates in the highest-demand specialisms (private client, transfer pricing). Firms are also increasingly competing on benefits beyond base salary, flexible working arrangements, enhanced pension contributions, and faster partnership tracks are all being used as differentiators.
Counter-offers remain common, with approximately 40% of candidates receiving a counter-offer from their current employer. We continue to advise candidates to think carefully before accepting counter-offers, our data shows that 60% of candidates who accept a counter-offer leave within 12 months.
Working Patterns
The hybrid working debate has largely settled in the tax profession. Most firms now require 2–3 days in the office per week, with genuine flexibility around which days and some accommodation for senior professionals with established client relationships. Fully remote roles remain rare in tax, though we are seeing more regional offices offering hybrid arrangements to attract talent away from London.
Outlook for Q2 2026
We expect the market to remain strong through Q2 2026. Several factors support continued demand: ongoing regulatory complexity driving the need for qualified tax advisors, the Pillar Two implementation wave creating TP and international tax demand, and the persistent undersupply of CTA-qualified professionals entering the market.
Firms that are planning to hire in Q2 should move quickly. The best candidates are typically off the market within 2–3 weeks of beginning their search, and firms that delay risk losing out on strong shortlists.
For a confidential discussion about current market conditions or to understand how these trends affect your hiring plans or career, please get in touch.