Tax consultancy

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Taxation is an area that is intellectually stimulating, challenging and subject to constant change. The majority of opportunities are with accounting firms, ranging from the Big Four (Deloitte, Ernst & Young, KPMG, PwC) to small local practices, but taxation specialists also work for solicitors, barristers and within business and industry.

Changes to legislation mean this is a career of growing complexity. In the private sector tax consultants are involved in two main aspects. They must ensure their clients (individuals or organisations) comply with current legislation and pay the correct tax. The area of most growth is minimising tax liability. This can be done by various measures, including restructuring the clients’ business arrangements, for example by investigating tax regimes in various countries and organising liability to fall in countries where the tax bill will be the lowest. To some extent there is a constant struggle between the Inland Revenue and tax consultants, who set up often very elaborate (but legal) schemes to minimise the revenue their clients pay to Government.

What type of jobs are there?

In the private sector tax roles vary depending on the type of employer and form of taxation you are dealing with. In a firm of chartered accountants, for example, you could be a tax consultant in corporate or personal taxation, in employer tax, in VAT or in customs and excise taxation. You can also specialise in giving taxation advice to almost any organisation with a substantial finance function, or provide client tax advice through solicitors, banks and specialist tax practices. The website Tax Working provides a list of the types of employers recruiting for the tax profession.

In 2010, HM Revenue and Customs collected £435.1 billion in taxation. They have around 88,000 employees and various graduate recruitment programmes. These include:
•    The Tax Professionals Development Programme (TPDP)
•    The Management Fast Track Programme (MFT)
•    The Civil Service Fast Stream Programme

The TPDP recruits graduates to train as tax inspectors, and takes four years to complete. The MFT looks for internal leaders and managers, and is also a four-year programme to Chartered Manager status. The Fast Stream programme takes on graduates who have the ability to work on high-level tax policy issues at senior levels in the Civil Service. The TPDP involves starting out in a local tax office carrying out investigations into dubious returns. This could vary from a short analysis of the figures involved and tax legislation applied, through to extensive investigations into the business and the lifestyles of the owners. They also help new businesses establish tax routines and understand their tax obligations. Many of those entering public sector roles move to private sector roles after a few years of experience.

The MFT offers general management training in a tax environment, and involves project management, team management and/or resources management.

What skills do I need?

Tax consultants need to be able to undertake reasonably complicated numerical manipulations. They also need to be able to respect confidentiality, have a good attention to detail and operate both creatively and logically. The ability to understand complex legislation and apply it is essential, so very strong intellectual and analytical skills are necessary. Finally, it is crucial to be able to create good working relationships with clients and HM Revenue and Customs, for example. This will involve understanding the business or personal situation of the client, and communicating clearly and simply to those without detailed tax knowledge. To work as a tax inspector or similar, an inquisitive and challenging approach is required, as is high analytical ability. In addition to the many skills mentioned above, a robust personality is also important, if you are to defend legislative interpretations against tax consultants. You may need to interview individuals in difficult circumstances. With the potential for promotion to senior positions in the public sector, strong leadership skills are also key.

Salaries vary depending on the employer. The TPDP starts at £25,125 (national), £27,311 (London), and rises to £43,864 (national), £49,167(in London), four to six years after joining, providing performance expectations are met. Graduate tax trainees in the larger City firms typically start on £24,000 to £28,000, rising to £44,000 to £48,000 on Chartered Institute of Taxation (CIOT) qualification, which is generally after three or four years. Tax partners can earn in excess of £170,000 in a Big Four firm.

What are the entry points?

Most tax professionals enter their roles directly from undergraduate study. Accountancy firms provide a number of routes to consider. Those entering corporate taxation would study for the Chartered Accountancy examinations, and probably follow that with the CIOT qualification. This would be completed alongside client work over the first four or five years. ACA involves a three-year training contract and two sets of examinations - a professional stage and an advanced stage - each taking a year. The CIOT qualification can be completed in the year after the ACA training contract, but more realistically a break is taken, and the CIOT qualification is achieved within 18 months of ACA qualification. Those focusing on areas of taxation such as personal tax, employer tax, customs and excise, VAT, often start directly on specialist taxation qualifications: the Association of Taxation Technicians (ATT) followed by the CIOT qualification. These two sets of exams are normally achieved in just over three years.

Those working in the public sector on the TPDP will undertake internal examinations. There are three years of core professional training. This involves studying at the Inland Revenue training centre plus private study each week followed by examinations. This training normally takes three years to complete and includes six modules. The final year involves a period of training in a specialist post, dealing with more complex cases. Visit HM Revenue and Customs online for more information.

How do I get experience?   

All the big accountancy firms, many of the medium-sized firms and some of the small ones offer opportunities to find out more about the profession. This can be through insight courses, work-shadowing, or paid work experience. Competition for places is strong, so take action in October/November prior to that summer. Within HM Revenue and Customs, the Inland Revenue offers an eight-week summer internship open to all students, including postgraduates in their penultimate study year. Locations and types of work will depend on business needs, but it's likely there's a vacancy near you. Alternatively try some applications to firms, if you would like some temporary work experience.

How do I get a job?

The most common private sector tax recruitment takes place in the autumn during the milkround. You should apply during this period to make sure you get the specific position that interests you, although some taxation roles, often within smaller firms or regional locations, may be available later in the year. The various schemes to work within the Inland Revenue all have early deadlines (usually late November) so do check the relevant websites carefully for up-to-date details. Most organisations will expect you to complete online employer application forms, and will typically have detailed websites.

EMPLOYMENT RIGHTS AND EQUALITY

For information about your employment rights, including the National Minimum Wage, please visit: http://www.direct.gov.uk/en/Employment/Employees/index.htm and http://www.direct.gov.uk/en/Governmentcitizensandrights/Yourrightsandresponsibilities/DG_10014458

Postgraduate students

For tax roles, beyond the advantages mentioned above, recruiters rarely look specifically for people with postgraduate qualifications, although are happy to consider postgraduates alongside undergraduate applicants. Some students consider first gaining a relevant professional qualification before looking for employment, but this is not usually something we recommend, as most employers prefer to take on trainees before they have commenced professional examinations.

International students

For roles in the Inland Revenue you should check the Inland Revenue and Fast Stream websites, which give comprehensive information about who can apply. Company websites also contain good information aimed at international applicants.

There are frequent changes to the rules affecting international students and recent graduates wishing to work in the UK. Until April 2012 the Tier 1 Post-Study Work category of the Points-Based System to work in the UK will be in operation. Under this scheme, international students can apply for leave to live and work in the UK for a maximum period of two years, provided they meet the eligibility criteria. In April 2012 this will be replaced with a new route in Tier 2 which will require a job offer, a minimum salary and students will need to apply within the UK. It is recommended that, for the most up-to-date information, you check the UKCISA: UK Council for International Student Affairs website which offers independent information and advice about immigration, finance and working in the UK, and also the UK Border Agency website. Please refer to our Diversity files at the Careers Service for more information, or consult the University's Student Information and Advisory Service.

Relevant events

For full details of events, check the What’s On section of our website and log in to CareerConnect. The Big Four run a number of events in Michaelmas Term, and these usually include information about careers with them in taxation.

•    How to Prepare for Psychometric Tests, Monday 10 October, 14.15, Careers Service.
•    The Finance Sector Fair, Thursday 20 and Friday 21 October in Oxford Town Hall, 14.30-18.00.
•    Also running short employer panel discussions before the fair:
Thursday 14.00-14.30, Demystifying the Finance Sector’.
Friday 14.00-14.30, Finance for Arts Students.

Resources available

OXFORD CAREERS NETWORK (OCN)

The OCN is a database of Oxford alumni who are willing to be contacted about their career. Read their case studies for behind-the-scenes insights into an organization or occupation, and contact volunteers for more advice and information via CareerConnect.

ONLINE INTERVIEW FEEDBACK

The careers website includes access to online interview feedback forms completed by Oxford students; please see the link below to access.

https://www.careers.ox.ac.uk/auth/interview_feedback/

RESOURCE CENTRE

The Careers Service also has an extensive resource centre at 56 Banbury Road, Oxford, where you can drop in to browse during opening hours (visit our website for details).

FILES
•    Occupational Files (green): J5 Taxation
•    Employer Files (red): Accountancy and Financial Services; Civil Service, Government Departments and Agencies: A-Z

JOURNALS
•    Tax Adviser, monthly, in Occupational File (green): J5 Taxation

BOOKS
•    Getting Started in Tax Consulting

BROCHURES
•    How to Become a Chartered Tax Adviser, CIOT, in Occupational File (green): J5 Taxation

TO TAKE AWAY
•    Inside Careers: Chartered Tax Advisers
•    Targetjobs: City and Finance
•    Career Choice: City and Finance

PODCASTS
The Careers Service has recorded a series of podcasts.  Subscribe in iTunes or find a full list here: http://podcasts.ox.ac.uk/#career-unit

Useful websites

In addition to the websites listed below, all companies and organisations mentioned throughout this Briefing can be found via a web search.

VACANCIES AND OCCUPATION INFORMATION
•    www.prospects.ac.uk
•    www.targetjobs.co.uk
•    www.jobs.ac.uk
•    www.economist.com
•    www.jobs.guardian.co.uk
•    www.jobs.telegraph.co.uk
•    www.jobs.thetimes.co.uk
•    www.thejobcrowd.com

SECTOR VACANCIES
•    www.taxworking.org gateway site for tax careers.
•    www.hmrc.gov.uk HM Revenue and Customs recruitment
•    www.faststream.gov.uk Tax Fast Stream opportunities
•    www.hm-treasury.gov.uk HM Treasury recruitment
•    www.insidecareers.co.uk careers booklet, The Tax Adviser’s Profession
•    www.michaelpage.co.uk useful for salary surveys.
•    www.accountancyage.com professional accountancy magazine plus careers information.

ORGANISATIONS
•    www.fssc.org.uk Financial Services Skills Council
•    www.theiit.org.uk Institute of Indirect Taxation
•    www.step.org Society of Trust and Estate Practitioners
•    www.tax.org.uk Chartered Institute of Taxation
•    www.att.org.uk Association of Tax Technicians

Social media

Twitter is a quick way to develop your knowledge about the sector and find opportunities.  You can read and search it without an account.  We’ve made 20 handy lists, so that you can see at a glance information tailored to your interests.  See http://twitter.com/#!/OxfordCareers/lists

If you’d like to join Twitter, remember to ‘follow’ us (www.twitter.com/OxfordCareers) as well as your chosen lists to keep receiving useful information to help your career.

See our Finance & Management Consultancy list at: http://twitter.com/#!/OxfordCareers/finance-mancon

Page last edited: 02 October 2011

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