Why Is It So Taxing? Navigating the Tax Legal Hiring Dilemma
It’s one of the most common complaints from law firms and in-house tax teams alike: “We just can’t find the right people.” Despite a steady demand for tax legal expertise, and in many cases a growing pipeline of work, firms are struggling to hire and retain the talent they need.
The challenge isn’t just a numbers game. It’s a deeper dilemma rooted in shifting expectations, evolving skills requirements, and a market that no longer responds to traditional hiring formulas.
M&A Fatigue
A growing number of tax lawyers are expressing frustration with narrowly defined roles. The heavy focus on corporate support work, and constant cycle of M&A deals, once seen as a badge of prestige is starting to wear thin.
On the whole tax lawyers are seeking out roles that offer a broader range of work, as well as tax teams that are generating their own advisory work, and aren’t purely, or largely, corporate support functions.
Salaries Are Levelling – So What Sets You Apart?
Salaries across top-tier firms have risen significantly in recent years, making the baseline compensation for junior and mid-level tax lawyers highly competitive. Today, candidates can expect to earn strong salaries while also finding opportunities for a healthy work-life balance. Because pay is no longer the primary differentiator, firms need to focus on what truly matters to people.
Hiring is no longer just about interviewing and testing candidates’ technical skills — it’s a two-way process where firms must also actively sell themselves. Candidates are looking for breadth of work, variety, learning and development opportunities, intellectual stimulation, and a clear path to a long-term, fulfilling career. Firms that recognise the importance of people, offer diverse and challenging work, and engage authentically in the recruitment process will be best positioned to attract and retain top tax talent.
The Firms Getting It Right
A small but growing cohort of firms are already ahead of the curve:
Building multidisciplinary tax teams, and redefining the profile of a great tax team
Creating meaningful career progression options outside of the partnership model
Actively recruiting top talent from overseas markets, or smaller UK firms
Expanding their PSL and knowledge functions into engines for growth, not just support
These firms are treating talent as a strategic asset — not just a headcount to fill.
Conclusion: Time to Recalibrate
The tax legal hiring dilemma is not just a temporary blip. It’s a signal that the market has moved — and hiring strategies must move with it.
Firms that evolve will win not only in recruitment, but in client impact and long-term sustainability. Those that don’t risk losing their edge to more agile players who understand that tax is no longer just a support function — it’s a strategic driver. And it takes a new kind of team to lead the way.
In a profession built on precision, the path forward may require some creative thinking. But one thing is clear: the firms willing to break the mould will be the ones that build the tax teams of the future, with the best talent in the market.
Want to build a future-ready tax team?
The market has shifted — has your hiring strategy kept up? Whether you're struggling to attract the right talent or looking to redefine what great looks like in your tax team, now’s the time to take action.
💡 Contact Beth to explore how you can recalibrate your approach and start attracting the kind of tax talent that will set your firm apart.
