March 2026 Tax Market Update

As we make our way into the next quarter, hiring activity for tax professionals within accountancy practices remains strong and highly competitive.

What started as an unusually active January continued throughout the quarter, with firms maintaining a clear focus on securing experienced tax talent early.

This aligns with wider trends across practices, where demand is increasingly concentrated on professionals who can offer more than traditional compliance.

Firms are prioritising candidates with advisory capability, commercial awareness, and the ability to translate technical tax issues into actionable insight, reflecting the ongoing shift towards broader, value‑added service delivery.

Regulatory changes, including the upcoming rollout of MTD for Income Tax in April 2026, are reinforcing this need for hybrid skill sets, with firms seeking tax specialists who understand digital systems, reporting processes, and the operational impact of reforms.

This has kept mid‑senior hiring particularly active, especially in areas where advisory work and systems knowledge intersect.

While overall hiring across accountancy practices remains robust, firms are becoming increasingly selective.

Broader labour‑market trends for early 2026 point to more deliberate, quality‑focused recruitment, with employers emphasising long‑term fit, structured evaluation, and candidates who can address immediate business needs.

At the same time, the profession continues to be shaped by candidate expectations around flexibility, culture, development, and work–life balance- factors that remain central to attraction and retention.

For candidates exploring the market in Q2, demand remains high, interview processes continue to move quickly, and firms are keen to engage early to avoid missing out on strong tax talent.

Private Client Tax

Hiring across Private Client and Personal Tax has remained steady post–busy season, and demand signals remain strong.

Firms continue to recruit from Assistant Manager through to Senior Manager level, driven by rising advisory workloads and ongoing succession planning.

Advisory complexity - particularly involving international clients, non‑UK domicile issues, offshore structures, and cross‑border succession - continues to intensify.

Market commentary shows increasing demand for specialists with international private client expertise as firms report growth in complex structuring, residence planning, and trust‑related work.

Competition for experienced hires in London remains high, but regional and boutique practices are becoming far more assertive, with many delivering sophisticated advisory work comparable to that of larger firms.

These smaller teams often offer earlier exposure to technical advisory matters and closer partner collaboration, which is attracting mid‑senior talent seeking accelerated development.

Broader accountancy‑practice hiring data also reinforces the shift towards advisory‑led skill sets over pure compliance, with firms increasingly valuing commercial insight and client‑facing capability.

Rising workloads and skill shortages across audit, tax, and accounting continue to put pressure on mid‑sized practices, especially in regions where demand for advisory‑capable staff has outpaced supply.

Across the wider tax market, hiring has become more proactive, with firms planning ahead rather than waiting for turnover.

Demand remains high for technically strong advisers, and in some areas, more traditional hybrid working arrangements are giving way to an increased expectation of being in the office four to five days a week for high‑value roles.

At senior levels, Director and Partner recruitment continues to be a priority for many Top 10 and mid‑tier firms in 2026, reflecting ongoing investment in strengthening leadership teams and deepening advisory capacity.

Overall, the market remains favourable for candidates - particularly those with strong advisory credentials or international client experience- while firms continue to compete actively for talent capable of navigating increasingly complex private client landscapes.

Corporate Tax and M&A

There remains consistently strong demand for corporate tax professionals, and this momentum shows no sign of slowing as we move into Q2.

Hiring needs are particularly concentrated at Manager and Senior Manager levels, with firms of all sizes - from the Big 4 and Top 10 to mid‑tier and boutique practices - actively competing for talent across a wide range of specialisms.

The market continues to be highly candidate‑driven, prompting firms to introduce new and innovative approaches to attract and retain experienced hires.

Regionally, demand is especially strong across major cities, with Cambridge, Bristol, Leeds, Newcastle, Scotland, and the Home Counties surrounding London all experiencing notable growth and elevated hiring activity.

The M&A tax market continues to expand, with steady hiring activity across both the Big 4 and Top 10 firms.

The Big 4, in particular, are prioritising senior‑level recruitment and are actively seeking Associate Directors and Directors to support continued deal‑driven growth and increased transactional demand.

For candidates with a general corporate tax advisory background who are considering a transition into M&A, now remains a strategically important time to move.

As hiring surges of this kind are typically cyclical, this may represent one of the last clear windows of opportunity before recruitment activity normalises and competition for entry into M&A teams intensifies.

Transfer Pricing

Since the start of 2026, demand for Transfer Pricing professionals has continued to grow.

While a number of roles carried over into this year, teams are now finalising budgets and headcounts for the new financial year, with many planning to hire an additional four to five professionals during 2026.

There is also increased demand for HMRC professionals with strong controversy experience, particularly across the Big 4 and several other large practices.

In addition, established mid‑tier firms are seeking to capitalise on their existing client bases and are looking for specialist leaders — such as FS Directors — to build and lead these offerings.

VAT

Recruitment activity in March remained strongest at Manager and Senior Manager levels, with firms continuing to prioritise individuals who can deliver complex advisory work while supporting business development and strengthening client relationships.

Director‑level hiring has also picked up this month, particularly among mid‑tier and boutique firms that are actively expanding their indirect tax offerings and looking to compete more closely with larger practices.

Regionally, March saw broader search activity beyond London, with practices across the UK accelerating their hiring plans and widening their focus across all grades.

Competition for experienced VAT specialists remains high, and firms are continuing to show strong interest in candidates with compliance‑to‑advisory transition experience - valuing the versatility such individuals bring to both delivery and revenue‑supporting roles.

Overall, March reflected VAT’s continued position as a key growth area for 2026.

Firms are placing clear emphasis on candidates who pair strong technical capability with commercial awareness and confident client‑facing skills - qualities that remain essential as advisory demands intensify.

US Tax

Private Client Tax
Demand for EA/ATT‑qualified dual handlers at Assistant Manager level and above continues to remain steady as we head into Q2 2026.

Additionally, dual‑qualified handlers with a focus on trust‑related work are particularly in demand at Manager and Senior Manager level.

The shift to a residence‑based inheritance tax system means that individuals who become long‑term UK residents may bring their worldwide estate within scope of UK IHT, making early trust planning essential.

When combined with the US system of worldwide taxation, stricter FATCA reporting, and increased scrutiny around foreign tax credit claims, experienced dual handlers are becoming increasingly essential.

Their ability to navigate treaty relief, optimise foreign tax credit utilisation, and manage evolving compliance obligations is critical for internationally mobile clients who now face more fragmented and faster‑changing rules on both sides of the Atlantic.

Corporate Tax
There remains strong demand for Manager‑level and above candidates with US funds tax experience within private equity, real estate, and partnerships as we head into Q2 2026.

Firms require individuals capable of managing integrated tax advisory work across international PE transactions, fund structuring, and allocation modelling.