A Career in Tax [Insert name and info of the member giving the presentation and the audience] Who would want to work in tax? Who would want to work in tax? • The tax profession is full of the most charming, eloquent, intelligent & modest people you could wish to meet! • [INSERT PICTURE OF THE MEMBER VOLUNTEER(S) GIVING THIS PRESENTATION] My Career • • • • • • • • [if desired, presenter to insert background or speak to the following points:] My educational career (school / university / degree / or other) My first job My first tax job My qualifications (tax, accountancy, other) My current role(s) My current and former clients (where and if relevant) My “thing I wish I knew then that I know now” nugget for you to share What is it about tax? • • • • • The tax industry is an incredibly stable profession, regardless of boom or bust, depression, recession or growth People often joke about death and taxes being the only thing you can count on in life! After all, regardless of the economic climate – the government still collects taxes The UK has the most complex tax system in the world Guide just for students! www.taxguideforstudents.org.uk Tax and Society • Tax is collected from every person or organisation which receives or buys something of value For example: salary, business revenue, fuel, inheritance, home, etc • • Tax is then used to pay for a wide variety of public services The Government has a website you can visit for more information to better understand tax: www.taxmatters.hmrc.gov.uk Where taxes come from • • • • • • • There are many types of tax that contribute to the UK Government budget They include: Income Tax A personal tax on your personal income, above a certain amount That income usually includes wages, pensions and interest on savings Corporation Tax Paid by companies on their profits Excise Duties There are various excise duties – they include Car Tax and tax on goods such as alcohol and tobacco Value Added Tax (VAT) You pay VAT when you buy goods and services in the European Union (EU), including the UK It's normally included in the price of the goods or service you buy VAT is not payable on some things Council Tax Helps pay for local services like policing and rubbish collection It’s a tax on the value or size of the home you live in whether owned or rented People also pay National Insurance contributions This is the money you pay to build up your entitlement to state benefits such as Jobseekers’ Allowance, Incapacity Benefit and the State Pension In’s and Out’s of tax in the UK Source: Guardian infographics – 2014 Budget Taxes and the Moral Issues • • • • So the money is collected in through taxes and then the government  spends it? That’s the theory, but it isn’t that straightforward! Some people make mistakes and don't pay the right amount of tax Tax professionals and HMRC spend a lot of time helping people to get their tax right Not everyone plays by the rules The moral dimension – considerable media discussion Have you been aware of the publicity around Starbucks, Amazon, HSBC, etc? Why a need for tax jobs? • • • • • Politicians decide on the taxes and pass them into law (Finance Bill is decided every year) Someone has to take the law and decide how much tax people should pay (HMRC) Someone has to collect the taxes due (HMRC) Some people need help figuring out how much tax to pay so they go to specialists who are tax technicians and tax advisers Organisations need to have people working for them who know about taxes to figure out and pay the taxes that are due What would I actually do? A tax trainee typically starts out with training to show you how to basic duties such as entering client information into a tax preparation software program Then, under supervision, progress on to: • • • • • • • • • • Preparation of tax accounting calculations Analysis of data Carry out tax research and summarise findings Meet clients as part of the tax team Learning about corporation tax and helping businesses comply Learn about PAYE and draft PAYE advice Respond to HMRC correspondence and assisting with enquiries Preparation of tax notes for accounts and reporting Respond to queries from finance functions and auditors Study for professional qualifications (ATT, CTA or others) The Rewards - What can a job in tax offer me? • • • • • • • • Intellectual stimulation – never being bored! Early responsibility Job satisfaction A key role in the financial world Excellent remuneration and prospects Travel Involvement with people The flexibility to work in a variety of different environments How much can I earn in tax? 2014 figures In-House Role From Average To Head of Tax 110k 180k 250k Group Tax Manager/Senior Manager 80k 100k 125k International/EMEA Tax Manager 70k 80k 100k Tax Compliance/Planning Manager 60k 75k 95k UK Tax Manager 60k 70k 85k Tax Accountant 45k 50k 58k Tax Assistant 25k 40k 45k Practice Role From Average To Senior Tax Managers (5-10 years PQE) 55k 70k 80k Junior Tax Managers (2-3 years PQE) 40k 46k 52k Tax Seniors (CTA Newly Qualified) 33k 38k 45k Tax Semi-Seniors (ATT Qualified, CTA Part Qualified) 25k 28k 33k Tax Juniors (ATT Part Qualified) 18k 24k 28k *PQE – Post-qualified experience www.michaelpage.co.uk/minisite/salary-survey/accounting-audit-and-advisory-tax-and-treasury Myth busting Myths stopping you from a great career Myth Reality I will have to work with numbers all day Problem solving, interacting with people, communication and understanding business is the most important Working with numbers can be a small part of the job Myth busting Myth Reality I will have to work long hours during tax Yes, but they are predictable and you can season schedule your holidays and other commitments around them Myth busting Myth Reality Tax changes all the time True but that is what makes it interesting Most of the tax laws remain the same so when you have a good foundation in tax – changes keep it interesting Myth busting Myth Reality I will have to work with auditors and other In tax there is a lot of room for error and people who don’t understand tax mistakes are costly Your work will be reviewed by numerous people which is a regular part of the job This is why communication skills are also important Myth busting Myth Reality You have to spend time and money to become There is no question that a prestigious a qualified tax professional profession takes time, money and work However if you want to greatly expand your job opportunities and earn money – it’s worth it Myth busting Myth Reality It takes too long to qualify as a tax Actually, in as little as two years, working part- professional time or full-time in a tax role, and passing five exams, you can then become a Tax Technician and member of the Association of Taxation Technicians (ATT) Why work towards a professional qualification? • • • Badge of quality • • Better job prospects – improve your employability Professional esteem and status Gain the knowledge, skills and ability faster than just working and learning on the job Ethics - Code of ethics is assumed if you belong to a professional body – fundamental principles: – Integrity – Objectivity – Professional competence and due care – Confidentiality – Professional behaviour What is the role of a professional body? Acting as the voice of the Leading the debate profession Protection of the public Discipline Badge of quality Professional Providing networking opportunities Body Input into policy and operational implementation Interaction with other professional bodies Support for members Helping to ensure the right amount of tax is paid • • • Standards Practical guidance and advice Access to resources The only UK professional tax bodies The leading professional body for qualified taxation technicians who provide UK tax compliance services and related activities The leading professional body concerned solely with taxation Members have the practicing title of ‘Chartered Tax Adviser’ Entry Requirements To be eligible to register as a student you must be at least 16 years old with a reasonable standard of English and Mathematics To be eligible to register as a student, you must hold a previous professional qualification (ATT is one of several choices) How it works Want to know more? For more information go to: www.taxguideforstudents.org.uk/careers ... of tax that contribute to the UK Government budget They include: Income Tax A personal tax on your personal income, above a certain amount That income usually includes wages, pensions and interest... know about taxes to figure out and pay the taxes that are due Benefits of a Career in Tax • • • • Fast changing industry – tax law is updated every year with the Finance Bill, combined with European... means that there is a growing demand for people to enter and develop their careers in the tax field Business (local, national and international) Running your own tax business HM Revenue & Customs