January is often seen as a “soft start” to the year. In reality, for in-house tax teams, it’s anything but. While the external perception is that hiring decisions will come later in Q1 or even Q2, what we’re seeing on the ground tells a different story: many tax teams enter January already under pressure, under-resourced, and playing catch-up.

Budgets are signed off late – but the pressure is immediate

One of the biggest challenges each January is timing. Headcount budgets may only be finalised late in Q4 or even early January, yet the workload doesn’t wait. Reporting cycles, audits, business planning and regulatory obligations all land at once. The result? Teams start the year knowing they need additional support but without the luxury of a long lead time to hire. This creates a sense of urgency that isn’t always visible from the outside – but it’s very real internally.

Regulatory and reporting deadlines don’t move

Tax is one of the few functions where deadlines are immovable. Whether it’s compliance, reporting, governance or dealing with increased scrutiny, the demands of the role continue to rise year on year. In January, those pressures feel particularly acute. Teams that were already stretched in Q4 often carry that strain straight into the new year, especially if vacancies have been left open longer than planned.

Vacancies linger longer than expected

A common theme I continue to see is tax roles remaining unfilled for months longer than anticipated. Sometimes that’s due to cautious decision-making. Sometimes it’s driven by unrealistic expectations around the candidate market. And sometimes it’s simply because hiring tax talent takes longer than other finance roles. The unintended consequence is that existing team members absorb the workload – often quietly – which increases burnout risk and makes future hiring even harder.

Why reactive hiring leads to weaker outcomes

When hiring becomes reactive, compromises follow:

• Rushed processes
• Narrow candidate pools
• Over-reliance on the “perfect CV” rather than the right capability

Ironically, this often results in longer vacancies or sub-optimal hires, reinforcing the cycle of under-resourcing.

The positive shift we’re seeing for Q1 2026

The good news? There is a more constructive mindset emerging as we move into Q1 2026. More Heads of Tax are:

• Planning earlier, even if start dates are later in the year
• Using interim solutions to stabilise teams during peak periods
• Being more flexible on background, sector and skill mix
• Engaging with the market proactively, rather than waiting for applications

Interim and project-based tax hiring, in particular, has become a genuine strategic tool rather than a last resort – allowing teams to manage workload, change and risk without long-term commitment.

A better way forward

The most successful tax teams I work with are those that treat January not as a pause, but as a planning window. They use Q1 to:

• Sense-check the talent market
• Stress-test role requirements
• Decide where permanent, interim or hybrid solutions make sense

That approach doesn’t just ease immediate pressure – it leads to better hires, stronger teams and far less disruption across the year. January may be quiet on the surface, but for in-house tax teams, it’s one of the most important hiring periods of the year. Those who recognise that early are the ones best placed for a calmer, and more controlled, 2026.

get in touch

Looking to hire permanent or interim tax professionals? Contact James Rodgers, SRM's Head of Tax Recruitment, on jamesrodgers@srmrecruitment.com or call 07852 322955.