I’ve commented before on the challenges that face accountancy firms that look to recruit their first full time dedicated tax partner. Recently I heard about an unexpected development – Tax specialists leaving general practice accountancy firms.
It’s a sign of the times. The reasons vary but include:
Tax partners’ reluctance to promote dubious tax schemes – to the disappointment of general practice partners (who naively consider their tax partners’ approach to be uncommercial);
Tax partners wanting a bigger share of the firm’s profits – to better reflect their contribution. The tax partners may perhaps be focusing on the level of their billings for tax advice. I hope that in such cases the tax partners are rainmakers and able to generate fees without the input of general practice partners who reel in new clients for recurring accounts and related work.
I’m told that at the CIOT Annual Conference last week there were a number of tax partners who have recently left their firms and set up by themselves. Clearly I welcome this development and hope that the better ones get in touch and join the Tax Advice Network.
I’d welcome feedback as to why you think tax partners are leaving firms and setting up as standalone tax practices. Do you think it will continue?