Tax Interim Market Update - Start of 2011

Last year saw substantial improvements in the interim market with almost all areas experiencing growth and demand. Whilst specialist areas of indirect tax and transfer pricing were in strong demand throughout 2010, towards the close of the year corporate tax experienced a rebound. People services (including expatriate & employment taxes, global mobility and compensation & benefi ts) has been another area of signifi cant growth.

With the banks the first to emerge from the recession, the financial services sector was a strong performer throughout 2010. As consumer confi dence stabilised, the fast moving consumer goods sector was also a strong performer over the past year.

The Pure Taxation Interim team helped tax professionals secure 130 placements throughout 2010. Compared with 2009 which saw placements peak in the second and third quarters, in 2010, placements were in steady growth. This sustained demand shows that the market is becoming more confi dent and hence private practice is closely following the recovery.

Looking at 2010, and the fi rst months of 2011, we see a number of trends. The Big 4 have begun to recruit in M&A as well as corporate tax across all levels which would indicate that corporates are more willing to spend on external help once again. Throughout 2009, companies with in-house tax departments would try to manage work internally in order to keep costs down. Pure interim are now increasingly receiving requests for additional support from interims to assist with in-house projects or workfl ow overload. As the Big 4 once again increase the cost of sending out secondees to assist internal departments, temporary workers become a far more economical option.

As the market becomes more attractive, we are already seeing the return of Antipodeans to the UK seeking to gain UK tax experience. Interim work has been an important part of the ‘working holiday’ for Antipodeans and we have historically been the fi rst port of call for tax professionals from Australia and New Zealand.

Demand for contractors within specialist areas such as transfer pricing, VAT and people services is set to remain strong in 2011, remaining high on corporates’ and governments’ agendas.