We held focused discussions with tax professionals across our network and analysed tax vacancy data across Commerce and Industry, Financial Services and Professional Services. The data compares hiring activity in January 2026 with January 2025 to assess current market conditions and likely trends for the year ahead.
The headline finding is clear: Tax recruitment activity increased by approximately 30 percent year-on-year. The defining driver behind this growth is the continued acceleration of private equity investment. PE capital is reshaping recruitment behaviour across both professional services firms and in-house tax teams. Capital investment, consolidation and value creation agendas are translating directly into sustained demand for tax talent at all levels. Private equity is no longer a peripheral influence in the tax recruitment market. It is now one of the central structural drivers.
Private Equity and Professional Services
The professional services market has entered a new phase following significant private equity investment into established firms and challenger platforms. A headline example remains Interpath Advisory, carved out from KPMG and acquired by HIG Capital in 2021 for approximately £380 million. The business is now reportedly valued at around £800 million following renewed interest from Bridgepoint. This type of value creation story is materially shifting sentiment across the mid-tier and challenger market. In recent years, several established firms have secured private equity backing. These include S&W by Apax Partners, Grant Thornton by Cinven and Moore Kingston Smith by Waterland. At the same time, new entrants such as Unity Advisory, backed by Warburg Pincus, have entered the market with clear growth mandates. Our view is that this valuation narrative is making PE-backed firms more bullish in 2026. Many are investing ahead of revenue, expanding service lines and increasing headcount to accelerate market share. Tax is a core beneficiary of this strategy.
Market Response and Competitive Dynamics
The influx of private equity capital has created clear knock-on effects across the wider market. A recent Times article highlighted that pay for mid-tier accounting partners has reached record levels. In some cases, remuneration now matches or exceeds Big 4 benchmarks. This has sharpened competition for senior tax talent and increased attrition risk across traditional firms. In response, Big 4 firms are hiring in volume across core tax service lines. Hiring is driven both by attrition management and by the need to protect future growth plans. Hiring spans Manager through to Partner level and remains geographically broad. We are also seeing increased merger activity across the mid-tier. This includes
the recent merger of Blick Rothenberg and Azets, alongside RSM UK confirming a merger with its US counterpart. Scale, consolidation and international capability are becoming increasingly important differentiators. Each continues to drive incremental tax hiring.
In-House Tax and Private Equity
Private equity influence is not limited to the advisory market. It is increasingly shaping in-house tax recruitment. Our vacancy data shows continued strength across both Commerce and Financial Services, with PE-backed and sponsor-owned businesses particularly active. These organisations are strengthening tax capability to support acquisitions, restructurings, carve-outs, refinancing and exit planning. In-house hiring remains weighted towards Corporate Tax, International Tax, VAT and transaction-focused skillsets. There is growing demand for tax professionals who can operate in fast-moving, deal-driven environments. Tax governance, reporting and technology capability also continue to feature prominently as PE-backed groups scale.
Key Hiring Trends from Our Data
Across the full market, several consistent themes are emerging:
• Overall tax hiring activity is up approximately 30 percent year-on-year.
• Professional services hiring remains intense, driven by PE-backed expansion and Big 4 response hiring.
• In-house roles continue to represent a significant share of vacancies, with PE-backed corporates a major source of demand.
• Regional hiring is growing faster than London, supported by hybrid working and national growth strategies.
Outlook for 2026
Looking ahead, we expect private equity to remain a major influence on tax hiring throughout 2026. Investment activity, consolidation and competitive pressure continue to translate into sustained demand across both practice and in-house environments.
If you would like to discuss our findings in more detail, please contact:
Graham Young | Director | 020 3826 8832 | graham.young@capitaltaxrecruitment.com