Members and students of the Chartered Institute of Taxation (CIOT) and the Association of Taxation Technicians (ATT) must follow the Professional Rules and Practice Guidelines (PRPG), which set five fundamental principles and specific obligations on insurance, anti money laundering, CPD, reporting to the bodies and handling clients. Breaches are dealt with by the independent Taxation Disciplinary Board, and tax work must also follow Professional Conduct in Relation to Taxation.

What are the PRPG and who must follow them?

The PRPG are the joint conduct rules of the CIOT and ATT. The edition listed as current on the CIOT website is the one effective from 9 November 2018, updated on 1 January 2021, with a further change to the definition of member in practice from 1 April 2021. Paragraph 1.5 applies them to:

  • members and students of the CIOT;
  • members and students of the ATT; and
  • international tax affiliates of the CIOT (ADIT affiliates).

They apply to a member employed in professional practice whether or not the employer is itself a CIOT or ATT member, and parts apply to members in commerce, industry and other sectors. Paragraph 1.8 stresses that members should observe the spirit as well as the letter, because no set of rules can cover every situation. The CIOT lists the PRPG alongside PCRT, the PII Regulations, the CPD Regulations, anti money laundering rules and the Taxation Disciplinary Scheme Regulations as the member rules.

What are the five fundamental principles?

Chapter 2 requires every member to comply with:

Integrity
Being straightforward and honest. A member must not knowingly or recklessly supply false or misleading information, must not be party to illegal activity, and must keep clients’ money properly accounted for and separate.
Objectivity
Not allowing bias, conflicts of interest or undue influence to override judgement.
Professional competence and due care
Not taking on work the member is not competent to do unless they obtain the advice, training or help needed.
Confidentiality
Not disclosing client information without specific consent unless there is a legal or professional right or duty to disclose, with no time limit on the duty.
Professional behaviour
Complying with laws and regulations and avoiding conduct, including in private life, that discredits the profession.

These mirror the principles in the accountancy codes, explained in the fundamental principles of the code of ethics, but the PRPG apply them specifically to tax advisers.

What obligations sit alongside the principles?

Paragraphs 2.7 to 2.13 set out members’ obligations:

  • PII: a member in practice must hold cover that complies with the CIOT and ATT PII Regulations. Since 1 April 2021 a member in practice includes any director registered at Companies House of a company providing taxation services, whether or not they hold shares; the old 5% equity test was removed.
  • Annual return: submitted within the advised time limits.
  • PCRT: all tax work must be carried out in accordance with Professional Conduct in Relation to Taxation.
  • Anti money laundering: members must follow the CCAB guidance including its tax practitioner appendix, and a member in practice must either register with the CIOT or ATT for supervision or tell them who their supervisor is.
  • CPD: a compulsory scheme applies to members, though not to students who are not members.
  • Cooperation: members must answer the bodies and the Taxation Disciplinary Board without unreasonable delay, normally within 30 days for the Board.

Both the CIOT and ATT are listed as professional body supervisors in Schedule 1 to the Money Laundering Regulations 2017. How supervision works across the profession is covered in AML supervision for accountants.

What must a member report to the CIOT or ATT?

Paragraph 2.14 requires written notice to the Head of Professional Standards within 2 months if a member is arrested on suspicion of, charged with or convicted of a criminal offence in the UK or abroad. From 1 January 2021 this extends to summary only road traffic offences, such as careless driving, driving without insurance or speeding, and to accepting a caution. A speeding offence need not be reported where the member attends a driving awareness course or accepts a fixed penalty.

The same 2 month deadline applies if a member is disciplined by another professional body or regulator, dismissed for misconduct, disqualified as a director or trustee, given a dishonest tax agent conduct notice, or given a monitoring notice under the promoters of tax avoidance schemes rules. Under paragraph 2.15, a member who enters an IVA or is made bankrupt must notify within 2 months; if they do not, membership ceases automatically when that period expires.

What do the PRPG say about clients and fees?

  • Taking on clients: a member should ordinarily contact the previous adviser before accepting an appointment (paragraph 4.4), which is the process described in professional clearance.
  • Engagement letters: strongly recommended at the outset, setting out scope and the basis of fees, with a new letter when the scope changes significantly (paragraph 4.5).
  • Client money: members should think very carefully before agreeing to hold it. Where they do, it must be kept in an account with “client” in its title, separate from firm money, and used only for agreed purposes. Paragraph 7.6.9 recommends a separate interest bearing designated account where more than £10,000 of one client’s money is held, or expected to be held, for more than 30 days, and reconciliation records must be kept for at least six years.
  • Contingent fees: permitted, but the member must be seen to meet integrity and objectivity, should set out in the engagement letter what happens if the benefit is later lost, and should consider whether a contingent fee could be a premium fee under DOTAS (paragraph 8.2). See contingent fees for tax work.
  • Ceasing to act: a member should not stop acting part way through unless legally or professionally obliged, the client requires it, or reasonable notice is given, and a disengagement letter covering deadlines and outstanding work is strongly recommended (chapter 10).

Can a Chartered Tax Adviser give investment or insurance advice?

Paragraph 3.9 says membership of the CIOT or ATT alone gives no authority to carry on regulated activities under the Financial Services and Markets Act 2000, which include investment and pension advice and advice on general insurance contracts. A member must be with a firm authorised by the FCA or a member of a Designated Professional Body. The CIOT and ATT are not on the list of Designated Professional Bodies in the PRPG, and carrying on regulated activities without authorisation or exemption is a criminal offence.

How do the PRPG relate to PCRT?

The PRPG are the CIOT and ATT’s own rules on conduct and practice management. PCRT deals with the relationship between the adviser, the client and HMRC, including the Standards for Tax Planning, and is issued jointly by seven bodies: AAT, ACCA, ATT, CIOT, ICAEW, ICAS and STEP. The current revision of PCRT took effect on 1 January 2026. The PRPG make compliance with PCRT a member obligation, so a breach of PCRT is also a breach of the PRPG. See Professional Conduct in Relation to Taxation, and for the equivalent regime at AAT, AAT licensed accountants.

What happens when a complaint is made?

Complaints against members are handled by the Taxation Disciplinary Board, which the PRPG describe as legally and operationally independent of the CIOT and ATT. It runs the Taxation Disciplinary Scheme, investigates complaints and appeals, and can make orders including costs and fines. Failing to respond to the Board or to comply with its order is itself a disciplinary matter. Paragraph 9.1 also strongly recommends that a member in practice has a complaints procedure, telling each new client in writing, ideally in the engagement letter, who to contact and that they can complain to the Board.

Illustration only

Priya is a CTA and the sole director of a small tax practice company owned entirely by her husband. Before April 2021 she might have argued she was not a member in practice because she held no shares. Under the current definition she is a registered director of a company providing taxation services, so the company must hold PII that complies with the regulations. If Priya accepts a police caution, she must report it to the CIOT in writing within 2 months.

What mistakes come up most often?

  • Directors without shares assuming the PII rules do not reach them.
  • Missing the 2 month reporting deadline, especially for cautions and road traffic offences.
  • Using the CTA or ATT designations, or describing a firm as Chartered Tax Advisers, without meeting the conditions in paragraph 12.4.
  • Holding client money casually without a properly designated client account.
  • Treating PCRT as guidance rather than a membership obligation.

Solar Protect runs fee protection schemes for accountancy and bookkeeping practices. See how our accountant schemes work or read fee protection schemes for accountants.

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Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 8 October 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.