Tax Teams Escape The Worst Of The Recession

by Jason Gorringe, Tax-News.com, London

24 April 2009

Tax professionals are confident about their job security, according to GRS, a UK specialist tax recruitment firm.

When GRS asked the UK’s tax professionals how they thought their team would be affected by the recession over the next year, the majority of respondents said they expected the size of their team to increase. While 45.1% thought staff numbers would rise over the next twelve months, only 24.6% of the respondents thought they were going to fall - with 30.3% estimating that things would remain unchanged.

Although the majority of the respondents were positive about the prospects for the next year, the average expected headcounts to grow relatively modestly – by only 3.5%.

Angela Parker, a consultant with GRS Tax, said: “Although it is excellent news that the majority of the UK’s tax professionals are confident about the next 12 months, it looks as though they’re not being unrealistic – the average they expected headcounts to increase was only by 3.5%. This is a case of tax not being hit as hard as the rest of the financial services sector - rather than it escaping scot-free.”

Tax teams in the Banking sector were the most fearful, expecting their teams' numbers to fall by 5.6%. Those in Asset Management also expected falls – but only to the tune of 2.3%. But those in Commerce & Industry were more positive, expecting numbers to rise by 3.5% - while those in Financial and Professional Services were far more positive, expecting increases of 11.4% and 12.0% respectively.

Angela Parker said: “Tax and tax planning issues remain as important as ever – perhaps even more so, as in a downturn companies seek to ensure they are as tax efficient as possible. With the government continuing to implement new measures for both corporates and individuals, it looks as if tax expertise will continue to be in high demand for the foreseeable future.”

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