Tax adviser

You'll need excellent analytical, problem-solving and communication skills, along with commercial awareness, to excel as a tax adviser

Tax advisers use their expert knowledge of tax legislation to provide advisory and consultancy services to clients, ensuring that they pay their taxes in the most efficient way and benefit from any tax advantages and exemptions.

They need to keep up to date with changing tax laws and explain complicated legislation and its implications to their clients in simple terms.

There are two main types of tax advice:

• corporate - working for business clients to make sure they aren't paying any more tax than is necessary
• personal - providing advice to individual clients, some of whom have large assets.

The work is detailed and complex, and tax advisers quickly develop expert knowledge in tax areas such as:

• corporate
• customs and excise duties
• employment
• inheritance tax, Trusts and estates
• international
• personal
• tax technology
• valued added tax (VAT).

Clients can include large and small companies, partnerships, trusts and individuals.

Responsibilities

Tax advisers can work in compliance, preparing and submitting tax returns and related documents, or in consultancy, advising clients on how to minimise their tax liabilities.

Graduates typically start by focusing on compliance activities, before moving into consultancy or specialist tax areas as their career progresses.

Typical work activities vary depending on your area of work, but you'll typically need to:

• meet with clients and collect information on their tax affairs
• check, prepare and submit compliance (tax) returns by the deadline
• liaise and negotiate with HM Revenue & Customs (HMRC) on behalf of the client to resolve any tax issues
• provide consultancy services to both private clients and businesses
• work out tax-efficient strategies to support clients' financial goals
• carry out detailed computations to calculate tax liability and advise on how to minimise a client's liability
• establish and structure family trusts (for private clients)
• advise on estate planning, tax residence and domicile matters
• provide guidance on indirect taxation relating to areas such as VAT, customs and excise duties, and environmental taxes
• research, analyse and interpret changes in tax legislation in both the UK and overseas
• produce reports and presentations for clients.

Some self-employed tax advisers also offer their clients a range of accountancy services, such as bookkeeping and payroll.

Salary

• Salaries for tax trainees typically range from £21,800 to £40,000, depending on your employer, experience and location.
• Qualified chartered tax advisers (CTAs) can expect an annual salary of between £35,000 and £65,000, depending on their location, level of experience and responsibility. Senior CTAs may earn more than this.
• Tax managers typically earn between £50,000 and £80,000 annually, rising to around £100,000 for some senior manager roles. There is potential for directors to earn between £70,000 and £150,000 a year or even higher in some regions, particularly London where salaries can reach around £200,000.

Salaries vary widely depending on your location and the type of employer, as well as your area of specialisation. Other factors affecting salary include your qualifications, experience and level of responsibility.

Salaries are towards the higher end of the scale in London and the South East, and tend to be lower in areas such as the East and West Midlands.

Additional benefits may include a pension and private medical insurance.

Salary figures are intended as a guide only.

Working hours

Working hours are mainly 9am to 5pm, Monday to Friday, with some extra hours during busy times, such as when tax returns are due (January) or the beginning of a new tax year (March and April).

At the start of your career, you'll also be studying towards a professional tax qualification, which can mean long hours. Some firms offer flexible working hours to help maintain a healthy work/life balance.

Working with private clients may involve home visits, sometimes out of hours, either in the evenings or at weekends.

There may be some opportunities for part-time or hybrid working.

What to expect

• You'll typically start your career as a trainee with a professional services firm. Once qualified, you can stay in this area of work or move to roles in financial services, commerce and industry, or with HMRC. With several years' experience, self-employment may be an option. Self-employed tax advisers typically work with individuals, self-employed traders, partnerships and small companies.
• Many graduate trainee opportunities are in London and other major cities, although roles are available across the UK.
• Work is often carried out in a team environment.
• The work involves strict deadlines, as tax return dates are non-negotiable.
• Local travel for client visits is common during the working day. Overnight stays and occasional overseas travel may be required, particularly for senior staff. There may also be opportunities to work abroad in areas such as corporate or expatriate tax.

Qualifications

Tax advising is open to graduates from any discipline, although subjects such as accountancy and finance, business, economics, law, management, mathematics and statistics are particularly useful.

You'll usually start in a trainee role and complete a professional tax adviser qualification while working. Trainee jobs are typically available with accountancy or law firms, in-house tax departments (in commerce and industry) or with HMRC. Some roles also exist in other public sector bodies, such as HM Treasury, or local government.

The main routes to qualifying are:

• If you have a degree or a professional qualification in accountancy or law, you can take the Chartered Tax Adviser (CTA) qualification through the Chartered Institute of Taxation (CIOT). This includes written exams, three Computer-Based Examinations (CBEs) and three years of practical tax experience.
• If you don't have an accountancy background, the CIOT recommends following the integrated Association of Tax Technicians/CTA Tax Pathway. This flexible route allows you to gain a grounding in tax and specialise early on, qualifying as both a taxation technician and a CTA.
• Other qualification routes include the ACA CTA Joint Programme (offered by the ICAEW and CIOT) and CA CTA Joint Programme (offered by ICAS and CIOT), which combine accountancy and tax training.
• It's also possible to undertake the Level 7 Taxation Apprenticeship, which combines paid work with part-time study to become a CTA.

Depending on the pathway you take, it typically takes four to six years to qualify as a CTA.

Most graduate schemes require a 2:1 degree or above, although some employers may accept a 2:2. Competition for training places is strong, especially with large accountancy firms. Smaller firms and public sector employers may offer more flexibility in entry requirements.

Entry without a degree is also possible. You'll typically need A-levels or equivalent to get a trainee role with a professional services firm and will then study towards one of the tax qualifications while working.

Find out more about the routes to becoming a CTA.

Skills

You'll need to have:

• excellent numeracy and analytical skills
• strong communication skills to explain complex tax legislation clearly to non-tax specialists
• interpersonal skills to build rapport with clients
• attention to detail and a methodical approach to work
• planning and organisational abilities
• good time management and the ability to meet strict deadlines
• problem-solving skills and a logical mindset
• commercial awareness and an understanding of business needs
• discretion and integrity, as the work is confidential
• adaptability and a flexible approach to changing regulations and workloads
• IT and technology skills
• a commitment to continual learning and development.

Work experience

Vacation placements are a good way of getting experience and improving your chances of securing a trainee tax adviser role. These are typically offered by larger accountancy or tax firms and may feed directly into their graduate recruitment.

Work shadowing is another useful way to learn about the day-to-day work of a tax adviser. You can also attend familiarisation events or networking sessions hosted by employers or professional bodies such as the CIOT or ATT, which are good opportunities to meet professionals and build connections.

Experience in related fields such as accountancy, banking or financial services can also be beneficial. Part-time work or internships in these areas can help you develop transferable skills such as communication, problem-solving, organisation and attention to detail.

Other options include volunteering, attending careers fairs and joining relevant university finance and law societies. You should also keep up to date with tax and economic developments by reading the specialist press to show your commercial awareness and motivation.

Find out more about the different kinds of work experience and internships that are available.

Employers

Most tax advisers work for:

• professional accountancy firms
• tax consultancies
• in-house tax departments within large companies.

Opportunities also exist with law firms, banks, investment firms, HMRC, public sector bodies and in the finance departments of large companies.

Firms in sectors such as energy, construction, the financial services, IT, media and manufacturing offer opportunities for those who are keen to work in compliance, planning or project and advisory work.

Some large companies and financial institutions have their own taxation departments and employ staff with an in-depth knowledge of the market sector. These firms usually offer the chance for greater specialisation and rapid promotion. Roles in smaller firms are usually more varied but less specialised.

Self-employment is also possible for qualified and experienced tax advisers. You'll typically provide a combination of tax, accountancy and financial services for individuals and small businesses.

Look for job vacancies at:

• Accountancy Age
• eFinancialCareers
• Financial Times
• Taxation-Jobs

Jobs are also advertised on LinkedIn and the websites of large accountancy and tax firms.

Recruitment agencies, such as Hays Taxation, Michael Page and Pro-Tax (part of Pro-Recruitment) also advertise vacancies.

Professional development

Graduates working as tax trainees in accountancy firms typically gain early experience in business operations and client work. This may be within a corporate tax team at a 'Big Four' accountancy firm (Deloitte, EY, KPMG or PwC), a top 20 accountancy practice or a large independent firm. Trainees usually assist with tax returns, compliance processes and client queries, and conduct research to support advisory work.

You'll need to balance this with study for professional tax qualifications. To qualify as a chartered tax adviser (CTA) and become a member of the Chartered Institute of Taxation, you must complete the CTA qualification and have three years of relevant professional experience.

Many trainees, particularly in small to medium-sized firms, follow the integrated Association of Tax Technicians/CTA Tax Pathway, which provides a strong foundation in technical tax knowledge and a flexible route to becoming both a taxation technician and a CTA. You will often be given time off to study for the qualifications.

You must keep up to date with changes in tax legislation throughout your career. Members of the CIOT and ATT must undertake continuing professional development (CPD) annually. These professional bodies offer a range of CPD activities, including conferences and events, as well as access to the latest tax news, resources and networking opportunities.

Career prospects

There are good opportunities for progression, particularly for those who gain professional qualifications and demonstrate technical ability, commercial awareness and strong client skills.

In public practice, for example, you can progress from trainee to CTA and then senior CTA. Further promotion can be to manager, senior manager, director and eventually partner. Larger firms often provide opportunities to specialise in areas such as corporate finance, mergers and acquisitions, international tax, VAT or private clients. Smaller firms tend to offer broader, more varied roles.

Secondments to overseas offices, client businesses or government bodies are more common in larger firms and can support both specialisation and career development.

Once CTA qualified, it's possible to move between tax consultancy, commerce and industry, the legal profession, financial services and HMRC. Some advisers also take on roles in policy, training or compliance with professional bodies or regulators.

There are also opportunities, if you're working in public practice firms, to work overseas, particularly if you have experience in expatriate, international or corporate tax.