More and more businesses are now bringing their tax functions in-house. With the need for more robust risk control frameworks around tax, it is important for tax to partner with the business, meaning that companies are increasingly looking for tax professionals with both technical expertise and strong commercial acumen and understanding.
So, what are the benefits of moving your tax function in-house?
In the current economic climate, the tax outsourcing model is expensive for many businesses. If you don’t have an in-house tax team you will be outsourcing work to a tax practice, most of which charge substantial outsourcing fees which has caused a marked trend across medium to large-sized companies towards bringing parts of their tax function in-house.
Internal resources and compliance come at a fixed and predictable cost. It can be economically effective to bring your tax function in-house and pay someone a fixed salary as opposed to paying tax professionals outside your company on an ad-hoc basis, which can be unpredictable.
Collaborative working environment
Having that ‘go-to’ person or team within your business can really benefit your workplace. Other areas of the business will notice there is a tax function and use it for queries or issues that they may not have raised before, which could potentially save your business money on tax - both outsourcing fees and problems further down the line. Having dedicated tax professionals with real face-time with the business and working in the offices alongside other parts of the business can create a collaborative working environment.
An in-house tax team will be solely focused on your company mission and goals which can be beneficial in comparison to someone from a tax practice whose focus is split across multiple clients. They would be fully immersed in your business and therefore able to react quickly to it’s changing needs, and will have a deeper knowledge and shared understanding of your businesses operational and end goals.
One of the biggest benefits of moving your tax function in-house is that your business will have greater control of its tax affairs and tax risk. Under Senior Accounting Officer legislation, the individual responsible (usually the CFO) is required to personally certify that their company’s systems are fit for the purpose of reporting taxes. By moving your tax function in-house, as a business you will be able to oversee and have more control over the tax systems in place. An in-house tax professional would be able to establish strong relationships with HMRC and work towards improving existing systems and controls that generate efficiencies in internal processes.
Not only this, but companies with a lot of investors can benefit by bringing tax in-house. Doing this shows to investors - both current and potential - that you are dedicated to saving money while also running your business in an effective, accountable way and could in turn encourage them to invest more.
Here at Pro-Tax within our Commerce & Industry team, we have seen a significant rise in the number of tax professionals wanting to move in-house and work within fast-growing, exciting and dynamic businesses. From a career point of view, moving in-house gives you the opportunity to broaden your experience and gain valuable commercial experience. For those organisations who believe that bringing their tax in-house would be beneficial, the talent pool available across industries has diversified and we often find that candidates are actively seeking an in-house opportunity to develop their career.