Is 2010 the year for overseas tax candidates?

Last year was one which shall remain firmly etched into all of our memories. It saw the end of lavish spending, big bonuses for bankers (still out for debate) and more importantly, a decline in opportunities within the UK interim market for overseas tax candidates. If you are an overseas candidate, you may be anxious to find out what will happen in 2010; Marisa Hari outlines what the Pure Taxation Interim team has witnessed in 2008 and 2009, as well as describes the conditions that may see a return of demand for overseas candidates.

The conditions that affected all tax candidates

The scene was set at the end of 2008 with many redundancies from the Profession and Financial Services institutions flooding the tax candidate market. The number of new candidates continued to increase throughout 2009 whilst we witnessed a decline in the number of interim corporate tax roles available to candidates. This influx of immediately available, UK qualified candidates to the market had not been seen for many years and this instantly altered the dynamics of the tax recruitment market.

Businesses were now more meticulous with the type of candidate they brought in to assist on an interim basis and consequently the criteria for short term requirements became even more stringent. In some cases, companies would be unable to obtain budget approval for interim assistance unless specific skills and experience requirements had been met.

Overseas tax candidates have been affected in corporate tax disciplines

Unfortunately, these market conditions have had a profound effect on overseas candidates without UK experience or qualifications. The interim tax market was once dominated by Antipodean candidates who were considered ‘the next best thing’ when a shortage of UK candidates was evident. The similarities in the two tax jurisdictions meant that Antipodeans could make an easy transition into the UK market with little or no training at all required. Now, increased competition amongst UK qualified candidates has meant that Antipodeans and other overseas tax candidates have increasingly been squeezed out of the market and consequently, the number of overseas candidates arriving in the UK to work has declined significantly throughout 2009.

Despite all of this and in contrast to roles within Corporate Tax, the demand for candidates with specialist experience such as VAT, Employee and Expatriate taxes and Transfer Pricing has still been apparent. Overseas candidates who have specialist skills in these areas have been able to obtain an interim role with less difficulty. Others who have been less successful finding a suitable role with a tax focus have accepted roles within finance and product control.

Change in the mood

A distinct change in sentiment within the interim tax recruitment market became evident towards the end of 2009 initiated predominantly by an increased appetite for tax professionals within the financial services sector and notably, the Big 4 have also started to offer secondments to overseas tax candidates again. With commerce and industry looking set to follow the same trend, overseas candidates can only become more sought after as the year goes on due to continued pressure from regulatory demands and headcount freezes.

If you are an overseas candidate who has been affected by the market conditions in 2008/09, and is keen to know how 2010 will affect your career, please contact Marisa Hari, our Executive Consultant specialising in interim appointments within commerce.