Accountancy Capital places VAT Directors, Heads of Indirect Tax and Indirect Tax Directors at £95,000 and above for in-house tax functions across the UK. The VAT Director is the most senior specialist in the in-house indirect tax function. As well as the routine compliance and advisory work a VAT Manager handles, the Director sets the strategic direction of indirect tax, takes on complex and non-routine advisory matters, manages significant HMRC enquiries and inspections, and leads and develops the indirect tax team.
The two roles differ in scope, seniority and the kind of issues handled. The VAT Manager runs day-to-day compliance and standard advisory questions; the VAT Director owns the complex, contested and strategically significant matters that need deep technical judgement and real experience of dealing with HMRC. For Manager-level searches, see VAT Manager recruitment; for every tax role we recruit, see our tax recruitment hub. To brief a VAT Director search, call 0204 553 8893 or email recruitment@accountancycapital.co.uk.
What a VAT Director Does That a VAT Manager Does Not
Partial exemption method design and negotiation
Businesses with a mix of taxable and exempt supplies, most commonly in financial services, healthcare, education and property, can apply to HMRC for a Partial Exemption Special Method (PESM) where the standard method does not give a fair result. Negotiating a PESM is a lengthy, evidence-heavy exercise that needs a thorough understanding of the business’s activities, the law and HMRC’s approach, set out in its guidance on partial exemption (VAT Notice 706). The VAT Director leads that negotiation at a technical depth and level of HMRC engagement beyond the typical VAT Manager’s scope.
Strategic input on business change
The VAT Director gives VAT input to acquisitions, disposals, new products, international expansion and digital service models at the design stage, not after the event. A business that launches a new product line without understanding its VAT treatment finds the problem after the commercial model has been built and priced. Property transactions, the option to tax, VAT grouping, the capital goods scheme and transfers of a going concern are common areas where Director-level input changes the outcome.
Managing significant HMRC enquiries
VAT enquiries at large businesses and financial services firms can run for a long time and involve large disputed assessments. The VAT Director decides how to respond, which points to concede, which positions to defend and when to bring in external advisers or counsel, and manages the relationship with HMRC, including the Customer Compliance Manager in larger groups. A VAT Manager is not usually expected to run this independently.
Team leadership and capability
The VAT Director leads the indirect tax team, usually a small group of VAT Managers and analysts, setting technical standards, reviewing the most complex work before it is filed or sent to HMRC, developing the team and managing the external advisers who supplement in-house capability. Our guide to managing external tax advisers covers how that relationship works best.
Board reporting and tax governance
The VAT Director reports to the CFO, Finance Director or board on indirect tax performance, the risk profile and significant open matters, translating complex positions into clear language a board can act on. In groups within the Senior Accounting Officer regime, the Director is responsible for the indirect tax controls that support the annual certification, and contributes to the controls that address the corporate offence of failure to prevent the facilitation of tax evasion.
VAT Director vs Head of VAT vs Head of Indirect Tax
The three titles are largely used interchangeably. Head of VAT and Head of Indirect Tax are the most common at the senior in-house specialist level; VAT Director is more often used at listed companies and larger financial services businesses where the Director title reflects the grading structure. In most organisations all three describe the same job: the most senior in-house indirect tax specialist, leading the VAT function and reporting to the Head of Tax or CFO. Head of Indirect Tax tends to signal responsibility for customs duties, excise or overseas sales taxes as well as UK VAT. We recruit all three under the same senior indirect tax search service.
VAT Director Qualifications
The role at £95,000 and above typically calls for the CTA with an indirect tax focus, built through a senior career in the indirect tax team of a Big Four or specialist indirect tax practice. The CTA is awarded by the Chartered Institute of Taxation, and its indirect tax papers are the most direct route to the technical depth the role needs. ACA or ACCA combined with extensive indirect tax advisory experience at senior manager or director level is also represented, particularly in financial services, where the accounting training adds value alongside the specialism. Many senior VAT specialists began with the ATT before progressing to the CTA.
The experience that most differentiates VAT Director candidates: involvement in a PESM negotiation with HMRC; managing a significant HMRC VAT enquiry from opening to settlement; complex supply chain and cross-border advisory work; and leading a team of two or more VAT professionals.
VAT Director Salary Benchmarks
| Role | London | South East | Midlands and North |
|---|---|---|---|
| Head of VAT / VAT Director | £95k–£135k | £81k–£115k | £72k–£103k |
| Senior Head of VAT / Indirect Tax Director | £120k–£165k | £102k–£140k | £91k–£126k |
| Head of Tax with indirect tax specialism | £130k–£200k+ | £111k–£170k | £98k–£151k |
Figures are typical base salaries. Financial services firms with partial exemption complexity, property businesses with significant option-to-tax positions and groups with complex international VAT footprints typically pay at the upper end. The premium over the VAT Manager at a business of similar size reflects both seniority and the scarcity of candidates with PESM and HMRC enquiry experience. Manager-level figures are on our VAT Manager job description and salary benchmarks page, and the wider picture is in our in-house tax salary guide.
Brief a VAT Director Search — 0204 553 8893
VAT Directors and Heads of Indirect Tax across the UK at £95,000 and above. A consultant will respond the same working day, or email recruitment@accountancycapital.co.uk.
When to Appoint a VAT Director Rather Than a VAT Manager
A VAT Director is justified when indirect tax complexity has outgrown Manager-level ownership. Typical triggers: an HMRC enquiry that has moved beyond a routine compliance check and needs strategic handling; a PESM to be negotiated for the first time or substantially restructured; a business model change that has created a VAT position the current team cannot manage alone; or a growing indirect tax team that needs someone to develop and review VAT Manager-level work.
Where the function does not yet justify a full-time Director, a Head of Tax with strong indirect tax capability, supported by an external specialist on a project basis, may be more cost-effective. Our view on hiring your first in-house tax manager covers the earlier stage of that journey, and Corporate Tax Director recruitment covers the direct tax equivalent.
The Compliance Environment a VAT Director Owns
The rules have tightened, and the VAT Director is accountable to the board for keeping up. Making Tax Digital for VAT became mandatory in April 2019 for VAT-registered businesses with taxable turnover above the registration threshold and was extended to all VAT-registered businesses from April 2022. The VAT registration threshold has been £90,000 since April 2024. A points-based regime for late submission, with new late payment penalties and interest, replaced the default surcharge from January 2023, so missed or late returns are now more visible.
At Director level the question is not whether returns are filed but whether the controls behind them hold up: digital links from ERP to return, review of manual adjustments, error correction and disclosure, and a documented tax risk policy. Legislative change keeps coming, from the domestic reverse charge for construction services introduced in March 2021 to VAT on private school fees from January 2025, and the Director decides what each change means for the business. Our VAT guide for finance teams covers the basics for non-specialists.
PESM Experience in the London Market
Partial exemption special method experience is one of the most sought-after and least available capabilities in the London senior indirect tax market. Relatively few indirect tax professionals have taken a PESM from initial proposal to written agreement with HMRC, because only businesses with complex partially exempt activities need one and each negotiation can run for a long time. That scarcity means PESM-experienced candidates usually command the upper end of the salary range and attract competing interest when they move. We can advise on their current market value and availability; our London tax recruitment page covers the wider market, and FCA-regulated firms recruitment covers the financial services employers where most PESMs sit.
Reporting Line Considerations
Where indirect tax is the most senior tax specialism, with no separate corporate tax lead, the VAT Director is effectively the Head of Tax and may report straight to the CFO or Finance Director. Where there is a dedicated Head of Tax, the VAT Director reports to that role and provides indirect tax depth within the wider function. The distinction matters to candidates: a Director reporting to the CFO carries broader governance and leadership responsibility and usually expects pay to reflect it. We confirm the reporting line on every brief before the search begins.
International VAT and Global Indirect Tax
UK businesses with overseas operations face indirect tax obligations well beyond UK VAT: EU VAT registrations and the One Stop Shop schemes, GST and HST in North America, GST in Australia and New Zealand, and VAT regimes in the Middle East and Asia, all subject to frequent change. Post-Brexit, movements of goods between Great Britain, Northern Ireland and the EU add customs and import VAT questions. The VAT Director at an internationally active group usually oversees global indirect tax compliance and advisory work, coordinating local advisers and making sure obligations are handled consistently. This is an increasingly common requirement in Director briefs, and we recruit for it alongside our international tax recruitment.
How We Run a VAT Director Search
A consultant from our recruitment team takes the brief: the VAT profile of the business (fully taxable, partially exempt, cross-border), any PESM in place or planned, open HMRC matters, systems, team size and the reporting line. We give a straight view on salary and availability before you commit, and fees are agreed in writing before the search starts. We respond the same working day, and permanent shortlists typically follow within one to two weeks. Interim indirect tax specialists, for enquiry support or cover during a vacancy, are typically available within days through our interim tax recruitment service.
Registering as a VAT Director Candidate
CTA-qualified indirect tax specialists at senior VAT Manager, Head of VAT, Indirect Tax Director or VAT Director level who are considering a move, from practice to in-house or between in-house roles, are invited to register. We keep an active senior indirect tax candidate network and contact registered candidates directly when a brief matches their PESM, HMRC enquiry and leadership background. Registration is confidential: register here or call 0204 553 8893. Our guide to moving from practice tax to in-house covers what changes.
Frequently Asked Questions
What is the difference between a VAT Director and a VAT Manager?
The Manager runs compliance and routine advice; the Director owns PESM negotiation, significant HMRC enquiries, strategic input on business change, team leadership and board reporting.
What does a VAT Director earn?
Typically £95,000 to £135,000 in London for a Head of VAT or VAT Director, rising to £120,000 to £165,000 for a senior Indirect Tax Director. See the table above for regional figures.
Does a VAT Director need the CTA?
It is the usual qualification at this level, though ACA or ACCA with extensive indirect tax experience is also seen, particularly in financial services.
What does a search cost and how quickly will you respond?
Fees are agreed in writing before a search starts. We respond the same working day.
Adrian Lawrence FCA — Founder, Accountancy Capital
Fellow of the ICAEW | Chartered Accountant holding an ICAEW practising certificate | Part of FD Capital Group
Adrian founded Accountancy Capital, one of the five specialist firms of FD Capital Group, after serving as Finance Director of a listed company, and holds a BSc from Queen Mary College, University of London. A VAT Director’s judgement on a PESM or an HMRC enquiry has a direct and measurable financial outcome, and our recruitment team assesses every candidate on that experience.
Related Pages and Resources
Indirect Tax Roles
VAT hiring below Director level.
Tax Recruitment
Every tax role we recruit.
Salaries and Rates
Tax pay benchmarks.
For Candidates
Senior indirect tax moves.
VAT Director Recruitment — 0204 553 8893
Permanent and interim VAT Directors and Heads of Indirect Tax across the UK at £95,000 and above. Same-working-day response on every brief, or email recruitment@accountancycapital.co.uk.