Looking towards tax trends in 2022
Amy Ferguson, Tax and Treasury specialist at Rutherford Cross, explores more about tax trends and the tax market in 2022
There is lots going on in the world of tax coming into 2022. As we move on from the trials of the last couple of years with pace, tax has stayed at full speed throughout 2021 and this doesn’t look likely to settle.
The impact of Brexit and the pandemic
2021 saw many businesses bolstering their customs capabilities and expertise due to the uncertainty surrounding the changes and challenges Brexit would bring. We also saw the continued rise of successful remote working, which has opened up previously untapped talent pools for many businesses.
This year there will be further interest from governments across the globe to seek out their “fair share” of taxes from companies they have supported throughout the pandemic. Undoubtedly there will continue to be further public scrutiny of corporate profits and tax arrangements. A strong relationship between tax professionals and finance teams will be important.
HMRC has made it clear that they will no longer be making any exceptions in 2022. This means continued investigations into furlough fraud are confirmed and pausing tax investigations are a thing of the past. In addition, HMRC will be continuing their effort with Making Tax Digital (MTD) with all VAT-registered businesses required to follow suit by April this year.
Change and digitisation
There is also the constant consideration of the future of tax in an ever changing and progressing digital world. Technological advances are rapidly transforming businesses, and the tax function will likely be no exception. Research by Deloitte has shown that businesses are accelerating investments in big data and artificial intelligence (AI) found that tax executives generally believe that unprecedented change driven by digital advancements and transformation is coming to tax within the next five years. Although tax-technical knowledge will continue to be critical, flexibility, adaptability and strong collaboration skills will all become crucial in the future of tax and tax professionals should be given opportunities to prepare for this.
Outside of the digitalisation sphere, in a push to encourage use of recycled resources in packaging, the Plastic Packaging Tax will come into effect on 1 April, with the aim to provide a clear economic incentive for businesses that use recycled plastic in the manufacture of plastic packaging.
What does 2022 have in store for tax professionals
The market looks set to continue to be buoyant this year. Opportunities in professional services will continue to rise to catch up with the hiring freezes we saw in 2020, and demand for manager level talent seems to be continuing at pace, with demand for senior tax talent also growing.
As the war for talent continues, and as many tax professionals consider their next move in 2022, packages for new talent coming into businesses are likely to remain extremely competitive. Professionals will continue to consider their careers in line with their personal values and it will be important for employers to be aware of the need for increased flexibility in working patterns.
It will be interesting to see how organisations will incorporate hybrid working into the new normal. With an increasing number of remote and hybrid opportunities, the potential for a much larger talent pool exists. Remote opportunities will also improve opportunities for increased diversity in teams and will open up international tax expertise talent pools.
About Amy Ferguson
Alongside working on numerous opportunities in the profession, I am also currently working on several opportunities within industry, including senior roles with Dana Petroleum and Capricorn Energy and have recently placed a senior tax role with AGS Airports. If you are considering your career and looking for your next move, or if you are keen to have a conversation around market trends and opportunities, please reach out to me at amyferguson@rutherfordcross.com.
This blog is one of a series of articles from our commercial partners.
The views expressed are those of the author and not necessarily those of ICAS.