A practising certificate is a professional body’s permission for a member to engage in public practice. An ICAEW member needs one to be a principal in an accountancy firm or to offer accountancy services to the public independently, whatever the firm is called; ACCA and AAT apply similar rules through a practising certificate and a licence respectively. The certificate does not by itself permit audit, insolvency, probate or investment business work, which need separate authorisation.

What is a practising certificate for?

Each professional body regulates its own members who work for the public. A practising certificate (PC) is how ICAEW knows which members are offering services to the public and brings them within its Practice Assurance monitoring, its Professional Indemnity Insurance Regulations and its anti money laundering supervision. ICAEW’s guidance on engaging in public practice says members in public practice will usually need a PC and PII and fall within Practice Assurance. Failing to hold a PC when one is required can lead to disciplinary action.

When does an ICAEW member need one?

ICAEW’s guidance says a PC is needed when a member engages in public practice, typically by becoming a principal in an accountancy firm or independently offering accountancy services to the public. It is also required to be a responsible individual for audit, or an appointment taking insolvency practitioner licensed by ICAEW, whether or not the member is a principal. ICAEW is explicit that a PC is needed:

  • whatever the member and the firm are called, including where “chartered accountants” is not used
  • whether or not a fee is charged, and whether the work is done in person or indirectly
  • even if the member holds a PC from another body such as ACCA or CIOT, subject to limited exceptions
  • whether or not the member does any work in the regulated areas

ICAEW’s scenarios show how this works. A member whose only role is marketing principal of a practice, providing no client services, still needs a PC because the role is irrelevant once someone is a principal. An employee with the title “Tax Partner” who is not a director or LLP member needs one if there is no professional accountant senior to them, or if clients are led to believe they are a principal. A principal of a business offering only company secretarial services, such as formations and registered office addresses, does not need a PC, although that business must register for AML supervision as a trust or company service provider.

How do you qualify and keep an ICAEW certificate?

ICAEW’s practising certificate guidance notes say a member is eligible only if they have been a member for two years, comply with the CPD bye law, understand the fundamental principles in the Code of Ethics, undertake to comply with the PII Regulations, are fit and proper, apply and pay the fee, and pass an aptitude test where relevant. ICAEW aims to process applications within 21 days. Certificates are renewed each year by paying the fee and continuing to meet the PII, CPD and competence requirements, with section 113 of the Code (professional competence and due care) singled out.

A new sole practitioner, or the sole director and shareholder of a practice company, who has not held a PC in the previous three years can apply once for a fee exemption covering the first application and the first renewal on 1 January. ICAEW also expects a sole practitioner to appoint an alternate before starting.

What are the ACCA and AAT equivalents?

Body What is held Main triggers
ICAEW Practising certificate Principal in a firm, independently offering accountancy services, audit responsible individual, ICAEW insolvency licence
ACCA Practising certificate Setting up a practice, joining a firm as a principal, holding 5% or more of a firm, becoming a UK statutory auditor
AAT Licence (AAT Licensed Accountant or Licensed Bookkeeper) Self employed bookkeeping or accountancy services to clients, including as partner, LLP member or director with 5% or more of the shares

ACCA’s guidance asks applicants to show three years of relevant experience, either through an Approved Employer with practising certificate development status or by completing experience forms. ACCA’s Global Practising Regulations exempt members who do bookkeeping only (GPR 4(2)), but ACCA points out that membership alone does not bring AML supervision, so such members must be supervised by ACCA through a PC or register with HMRC.

AAT says all self employed members offering bookkeeping or accountancy services must hold a licence, which brings PII, client money, continuity of practice and Practice Assurance requirements. AAT exempts members who are authorised by a recognised chartered or certified body, those working only as subcontractors under another firm’s PII and AML procedures, and those doing unpaid work for family, friends or small charities.

Does a certificate allow audit, insolvency or probate work?

No. ICAEW’s guidance says statutory audit, insolvency, probate and investment advice are reserved by legislation and need further authorisation. For audit, section 1212 of the Companies Act 2006 makes an individual or firm eligible for appointment only if it is a member of a recognised supervisory body and eligible under that body’s rules. Audit experience may help a member qualify for a PC, but it does not give the audit qualification, responsible individual status or registered auditor status for the firm.

What about accountants who belong to no body?

They need no PC, but they are not unregulated. HMRC’s guidance says accountants providing accountancy services to clients must register with HMRC for money laundering supervision unless a professional body already supervises them. If they deal with HMRC for paying clients they must also register as a tax adviser through an HMRC agent services account, which requires approved AML supervision first. See AML supervision for accountants.

What happens when a partner retires but stays on?

ICAEW’s retiring from practice helpsheet says a retiring principal who stays as a consultant without a PC must not be held out as a principal. Under section 14 of the ICAEW statement on engaging in public practice, that means making the position clear in letters and emails to clients and removing the person from the partners section of the website. Roles taken on after retirement, such as accounts for friends, independent examination of a charity, or acting as executor or attorney, each need their own assessment. The steps for an exit are covered in selling or closing an accountancy practice.

What mistakes come up most often?

  • Believing a PC from one body covers membership of another; ICAEW requires its own.
  • Giving senior employees partner titles without checking whether they are held out as principals.
  • Starting to trade before the PC, PII and AML supervision are in place; ICAEW says you should have the PC before you commence.
  • Assuming a PC allows audit or probate work.
  • Letting PII lapse; certificate holders must comply with the PII Regulations, covered in professional indemnity insurance for accountants.

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.