1. taxissues
taxcareers analysis
Routes to the top in VAT
Alex Curcio explores the current job market for VAT
professionals, and says that today’s business world
demands more than just technical know-how
although VAT staff are among the best and that their ‘client’ may be sitting several
rewarded in the tax profession. Big Four feet away, rather than at the end of a phone
managers earn upwards of £50,000 plus or email. And as the in-house sector is so
around £10,000 worth of benefits, while small, prospects for moving onwards and
senior managers earn £70-100,000 and upwards can be limited; career and salary
directors £110-150,000. Most employers progression tends to be steady rather than
With organisations of all sizes and in are unwilling to enter a bidding war, which dramatic. Many ambitious VAT specialists
all sectors seeking to drive down costs, could send pay spiralling upwards, when treat in-house as a short to medium-term
tax professionals who can use their there is so much economic uncertainty. move, returning to practice to chase the
prowess at interpreting technical and successful recruiters have instead focused on financial rewards of partnership – knowing
legislative aspects of indirect tax are emphasising issues such as work-life balance well that their ‘insider’ experience from the
in an ideal position to raise their own and training and development. client side is highly valuable.
profile with ingenious but legitimate Although efforts to contain costs are likely
ways of reducing liabilities. That means In-house concerns to drive an expansion of in-house teams, stiff
that the very best VAT specialists can Conversely, within in-house tax departments, competition for jobs will remain, so there’s
command premiums – yet employers VAT professionals are engaged in a ‘war no room for career complacency. While firms
want to see evidence of a wider for work’. somehow, the in-house career have compromised on their desire for wider
range of business and commercial option has become ‘sexy’; salaries match and business skills in recent years, there are signs
competencies. And those who want occasionally exceed those in practice, while that this is changing.
to reach the top will be called on share options and bonuses are now relatively
to demonstrate their leadership commonplace. Moving on, moving up
credentials before directorship or But the gap between practice and the The VAT workplace today is more complicated
partnership is likely to be offered. corporate sector remains narrow. – and the business of career progression is
One of the key motivations for a move increasingly challenging.
Practice matters in-house seems to be a belief that it will offer Those who seek managerial, partner or
Although large sections of the media keep a better work/life balance, because there is director roles will require much more than
telling us that the global credit crisis is just no inherent drive to clock up billable hours. technical competence and the ability to
a whisker away from pushing us into This is supplemented by a desire to work steer clear of trouble. They will need to
full-blown recession, the market for VAT for just one organisation, and identify more communicate effectively, network within
specialists at all levels remains defiantly closely with that company’s aims. But corporate environments and the wider tax
healthy within public practice. Competition in-house VAT teams are still relatively thin community and appreciate how their work
for the best people is intense; there are too on the ground – and small in headcount; integrates with and contributes to commercial
few trained professionals coming through, employers can afford to be highly specific operations.
while there is a general inertia, stemming about the skills, experience and cultural fit With modern employers, VAT professionals
from a belief among many that, with few required. often progress not just because of their grasp
exceptions, there is little to differentiate one How good in-house departments are at of technical issues but also their ability to
medium or large firm from another. fulfilling their, often unspoken, promise to build relationships. The ability to put together
Only a small number of ambitious, niche candidates is open to debate. Many who cross a group of individuals who can help you to
consultancies have entered into any form over from practice find that the demands of perform more effectively on both a tactical
of buying competition to secure staff, one can be as testing as those of several – and strategic level is becoming increasingly
12 www.taxcareersonline.co.uk TAX CAreers | July 2008

2. taxissues
important – and relatively simple to learn, Business school in London says: ‘We have
given the right motivation. The key is to come to the conclusion that the idea of the
realise that effective networking is based on “born leader” does not stand up; born to
two simple pillars – the fact that most people lead what, when and with whom? The idea ‘Those who want to
actually like being asked for their opinions of leaders being “made” is equally romantic –
and assistance, and an appreciation that nobody knows how to “make” a leader.’ reach the top will be
the process works best when it is based on Perhaps therefore, the best way to develop
mutual benefit. leadership skills is to recognise one’s own called on to demonstrate
successful networkers are not afraid to ask inherent abilities and then hone them in the
for help, and take every opportunity to offer front line of the workplace. The most efficient their leadership
assistance to those who could return the and effective way to do this is to watch for
favour. the successes and failures of those around credentials before
you.
Lead and inspire For those VAT specialists keen to take full directorship or
However, traditional management and advantage of the expansion of the in-house
communication skills may be insufficient to sector and the apparent resilience of indirect partnership is likely to
accelerate your career. If you have your sights tax services across public practice, developing
set on the boardroom or partnership table, wider business skills is set to become ever be offered’
you also need to be a leader. more important. For many years, both areas
But what exactly does that mean? One of the sector have compromised, settling for
dictionary describes a leader as ‘someone pure technical ability over broader commercial
who guides or inspires others’. At its best, and general managerial competencies. But
leadership can achieve much more than as initiatives such as the dedicated Big Four
simple management. research indicates a training schemes impact on the market,
direct link between effective leadership recruiters are likely to become much more
and commercial performance. strict in their requirements, and competition
so, given how important leadership for the best roles will hot up noticeably. You
qualities obviously are, do you have to be have been warned…
born with them – or can they be learned?
some of the world’s major business schools For more information, contact
have set up specific leadership departments, Alex curcio, MrL Financial
suggesting one can learn how to lead in alex.curcio@mrl-financial.com
the classroom. But the real picture is more 01273 320860
ambiguous. Professor David sims of the Cass
LeAdershIP checkLIsT
l CommuniCATion – the ability to get your message across in a clear,
effective and emotive way can take you a long way.
l ClARiTy – people like to know what is expected of them and what
objectives they and the wider organisation are aiming for.
l DeCision – good leaders don’t vacillate; be clear about what you think
and where you are going.
l ADApTAbiliTy – be flexible enough to react to new challenges and
opportunities.
l AppRoAChAbiliTy – be seen to be part of the team; an open-door
policy will encourage your team to communicate openly and honestly
with you at all times, making management and direction much easier.
l Vision – an ability to see the bigger picture, and identify the problems
of tomorrow today, is vital.
l exAmple – expect from others what you expect from yourself; leaders
belong at the front, not the back.
www.taxcareersonline.co.uk TAX CAreers | July 2008 13