Ryan FowlerThe UK tax labour market recorded strong growth in the first quarter of 2025, with vacancies up 14% year-on-year and 19% quarter-on-quarter, according to Morgan McKinley and Vacancysoft’s latest report. The rise reflects demand for specialist tax expertise following major fiscal reforms introduced by Chancellor Rachel Reeves.
New policies, including higher NICs, VAT on private schools, and the removal of tax exemptions for electric vehicles, have driven firms to expand their tax advisory teams. Corporate tax, indirect tax and transfer pricing roles have all seen significant growth.
William Hepworth, principal consultant – taxation at Morgan McKinley, said: “The UK tax hiring landscape in 2025 has been shaped significantly by evolving demands in financial services, particularly in corporate tax, VAT, and transfer pricing, driven by regulatory complexity and market shifts. Notably, we’ve observed considerable volatility within the tax technology market, marked by heightened activity that peaked in early 2025 but has since slowed, especially due to restructuring at firms such as PwC. However, market conditions are projected to recover through the summer months.
“Additionally, key growth areas like employer solutions including mobility, equity & reward, and employment tax are experiencing substantial hiring increases. Firms continue to face challenges recruiting at the senior manager level, as many experienced professionals transition into industry roles, creating critical experience gaps and intensifying competition for talent who can mentor junior and international staff. Despite a cautious start to the year, we anticipate increased recruitment momentum as we move into mid-2025.”
While London remains the largest market for tax roles, accounting for 1,392 vacancies, regional hiring is growing faster, representing 61% of projected openings nationwide. The East Midlands, West Midlands, and North West have seen vacancy growth of 23% to 29%.
Generalist tax roles still dominate, accounting for 58% of vacancies, but corporate tax vacancies rose 25% year-on-year, and transfer pricing vacancies grew 50%.
Consulting and accountancy firms continue to dominate tax hiring, with vacancies in professional services expected to grow 26% in 2025. In contrast, banking tax vacancies are forecast to decline by 9%, while legal sector hiring is expected to fall 41%.
The Big Four firms are showing divergent strategies. KPMG is forecast to grow tax hiring by 66% to 296 roles, and Deloitte by 125%, while PwC is expected to reduce tax hiring by 24% and EY remains flat.
Mid-tier firms are expanding rapidly, with RSM forecast to grow tax hiring by 155% and PKF Francis Clark by 33%.
