Tax Hiring Resets After Record 2025 Surge

• UK tax hiring to fall by ~10% in 2026 following a 19% surge in 2025 
• London share rises to ~43% as regional hiring declines ~15% 
• Core tax roles remain dominant at around 60% of demand 
• Specialist demand shifts toward employment tax, indirect tax and tax technology, highlighting growing skills gaps

Hiring Slows as London Regains Control

The UK tax labour market is entering a period of normalisation following a sharp expansion in 2025. Vacancies rose by around 19% last year and are now projected to decline by roughly 10% in 2026, signalling a rebalancing rather than a downturn. This shift is being driven by regional activity, while London remains relatively resilient, increasing its share of overall demand.

The slowdown in tax hiring is being driven primarily outside London, reinforcing a clear regional divide. Regional markets, after strong growth in 2025, are now expected to contract, while London demand remains broadly stable following double-digit growth last year.

As a result, the capital’s share of hiring is rising, underlining its continued role as the centre of tax recruitment. Short-term indicators also point to easing momentum, with early-year growth now reversing into a modest decline.

Core Tax Roles Hold Firm as Specialists Diverge

Hiring remains heavily concentrated in core tax roles, which grew by around 18% in 2025 before easing by roughly 11% in 2026, yet still account for just under 60% of total demand. Within specialist areas, the divergence is more pronounced.

Corporate tax rose by approximately 35% before falling by around 26%, indicating a cyclical spike rather than sustained growth. Indirect tax, however, is continuing to expand, rising by around 30% in 2025 and a further 10% into 2026, increasing its share to roughly 10%.

Employment tax is accelerating fastest, jumping by around 160% and then a further 78%, albeit from a low base. In contrast, tax advisory is declining, with a 5% drop followed by a further 8% fall, showing reduced appetite for non-essential functions.

Professional Services Drives Market Direction

Professional Services continues to dominate tax hiring, accounting for close to 70% of vacancies at its peak in 2025 before easing back to around 65% in 2026. Growth of 27% last year has been followed by a 16% decline, closely mirroring national trends and confirming its role as the primary driver of demand.

Financial Services is moving in the opposite direction, with hiring falling by around 17% in 2025 and a further 10% in 2026, reducing its share from approximately 15% to 10%. Elsewhere, expansion is more fragmented - consumer goods and services rose by 42% and is expected to grow by a further 6%, while industrials surged by roughly 150% before adding another 10%. Despite this, both remain relatively small contributors, limiting their overall market impact.

Firms Shift From Expansion to Precision Hiring

Hiring strategies across leading firms are diverging following the 2025 peak. KPMG, the largest employer, increased hiring by around 32% before reducing activity by roughly 13%, indicating a move away from volume recruitment.

PwC shows a sharper cycle, with a 45% decline followed by a projected 30% rebound, reflecting a pause and reset approach. Deloitte is expanding aggressively, with growth exceeding 200% and a further 68% increase expected, signalling a sustained build-out.

EY follows a similar but more moderate pattern. Among mid-tier firms, volatility is more pronounced. BDO declined by around 11%, while MHA and Francis Clark experienced sharp growth in 2025 followed by notable pullbacks.

The shift is clear, hiring is becoming more targeted. Despite the slowdown, competition for experienced tax professionals remains high in key specialist areas.

William Hepworth, Principal Consultant, Tax at Morgan McKinley commented: "The market is shifting from volume hiring to targeted capability, with firms prioritising professionals who combine technical expertise with strong commercial and client-facing skills. Tax technology is fast emerging as a critical gap, particularly for those who can bridge tax, data and AI.

Top Companies: Tax Vacancies, All Sectors, UK, 2024 - 2026 (Jan/Mar) - Estimated

The table below highlights vacancy volumes across the five largest tax hirers in the UK, illustrating the diverging strategies firms have adopted following the 2025 peak.

For more information, contact Sharmee Mavadia on smavadia@morganmckinley.co.uk or Anastasiia Bohush on anastasiia.bohush@vacancysoft.com.

The full report, produced by Morgan McKinley and Vacancysoft, is available to download [here].

NOTES TO EDITORS

• The data contained within the report is gathered solely and specifically from the career pages of company websites, not job boards.
• Before publication, job postings are de-duplicated and verified as unique. Every vacancy is assigned up to 20 data points through Vacancysoft’s proprietary algorithm, which is double-checked for validity by a data quality control team.

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