Should you hire a fractional or interim Head of Tax?
We’ve already discussed why you should consider hiring a permanent Head of Tax for your start-up, but as an alternative, could your business benefit from hiring a fractional or interim professional?
If your business is navigating complex tax challenges but isn’t ready for a full-time hire, a fractional or interim Head of Tax could be the strategic solution you need. In this article, we explore the differences between fractional and interim tax leadership, their benefits, and how to determine which is right for your organization.
What does an interim hire do?
An interim professional is someone hired on a temporary basis to fill a leadership or specialist role during a period of transition, such as a vacancy, restructuring, or project implementation. Unlike permanent hires, interim professionals are typically brought in for their ability to quickly stabilize operations, manage urgent challenges, and maintain continuity until a long-term solution is found. They bring deep expertise and are often overqualified for the role, allowing them to make an immediate impact without a long onboarding process.
What does a fractional hire do?
A fractional hire is a professional who works with a company on a part-time, contract, or project basis, rather than as a full-time employee. This arrangement allows businesses to access specialized expertise – often at a senior or executive level – without the cost or commitment of a full-time role. Fractional hires typically support strategic functions such as finance, HR, marketing, or tax, and are ideal for companies that need ongoing guidance but don’t require someone in the role every day. Their flexibility makes them especially valuable for startups, scale-ups, or businesses undergoing change.
Interim vs fractional Head of Tax: which is right for your business?
Deciding between hiring an interim or fractional Head of Tax depends on your organization’s specific needs and circumstances.
Interim Head of Tax
An interim Head of Tax is usually brought in for a fixed period, often to cover for a vacancy or during a transitional phase. Key advantages of hiring an interim professional include:
- Immediate availability: They can step in quickly to manage urgent tax issues or fill a gap during a transition
- Focus on stabilization: An interim leader often focuses on ensuring compliance, stabilizing operations, and addressing immediate challenges
- Project-based expertise: They can lead specific projects, such as audits or system implementations, and then depart once objectives are met
However, the nature of an interim hire means that it is not for them to set long-term strategy, which may limit their overall impact.
Fractional Head of Tax
A fractional Head of Tax works on a part-time or flexible basis, providing ongoing expertise and support. Key advantages of hiring a fractional Head of include:
- Long-term strategy: They focus on developing and implementing tax strategies that align with the company’s long-term goals
- Cost efficiency: Businesses can access high-level expertise without the costs associated with a full-time hire
- Scalability: Fractional roles can be adjusted based on the company’s evolving needs, making it a flexible option
Ten benefits of hiring a fractional or interim Head of Tax
- Cost-effectiveness – Fractional executives allow businesses to access high-level expertise at a fraction of the cost of a full-time hire
- Flexibility – Companies can scale their tax resources based on current needs, avoiding overhead costs
- Expertise on demand – Fractional Heads of Tax often bring extensive experience across various industries, providing insights that in-house teams may lack
- Current knowledge – They stay updated on the latest tax laws and regulations, ensuring compliance and optimized tax strategies
- Long-term planning – A fractional Head of Tax can help develop and implement tax strategies that align with the company’s overall business goals
- Risk management – They can identify potential tax risks and create mitigation strategies to avoid costly penalties
- Transition and training – A fractional executive can train existing staff, enhancing the overall capability of the team
- Smooth transitions – They can help during periods of change, such as mergers or acquisitions, ensuring tax compliance and efficiency
- Adaptability to business size – Startups to Enterprises: Fractional tax leaders can benefit businesses of all sizes, tailoring their approach based on specific needs and challenges
- Networking and resources – Industry Connections: Fractional Heads of Tax often have a broad network of contacts, providing additional resources and support for the business
How Brewer Morris can help you source an interim or fractional Head of Tax for your start-up or portfolio business
A senior tax professional will always be an asset to businesses looking to enhance their tax strategy without the commitment of a full-time role. By providing expertise, flexibility, and strategic insights, they can help organizations navigate complex tax landscapes effectively.
If you are looking to hire a Head of Tax for your start-up, please don’t hesitate to submit a brief and a member of our team will be in touch.
Alternatively, if you are looking for a new Head of Tax opportunity, look at our latest opportunities.