If you are engaged in public practice in the UK, you need to hold an ICAEW practising certificate (PC), but when you work for yourself, it can be difficult to know if you require a (PC, especially if your work isn’t strictly financial in nature. With changes to the statement on members engaging in public practice due to kick in in January 2024, these five scenarios will help to shed some light on the situation.

You’re a self-employed consultant

If you are a self-employed consultant providing consultancy services to a firm of accountants, but are not held out as a principal and the firm supervises and controls your work and accepts responsibility for it, then a PC is not required.

In a situation where you’re working with a firm of accountants where you used to be a principal, you should consider clarifying your role in writing with the firm, explaining that your role has changed, it does not require a PC and that you do not have professional indemnity insurance. 

In all scenarios it would also be best practice to have a formal subcontractor agreement in place. ICAEW has produced guidance on acting as a subcontractor to a firm, which includes an outline agreement.

You’re a principal in a consultancy group

If you are a principal of a number of entities in a consultancy group where the group’s main activity is to offer management consultancy on non-accounting matters, but the group also includes a small subsidiary that provides tax compliance services, the situation will require further investigation. 

Members who provide accountancy services that are incidental to the non-accountancy related core business services (or who are principals in a firm providing accountancy services that are incidental to non-accountancy related core business services) may not require a PC. 

Accountancy services would only be considered incidental if all of the following criteria are met:

• The accountancy services are incidental, complementary to, integral to and arising out of the core services being provided which are not, themselves, accountancy services.
• The accountancy services should not result in a separate income stream nor be charged to clients separately from the non-accountancy core services being provided.
• The firm does not market itself, or hold itself out as an accountancy practice and accountancy services are not marketed as a separate service.
• The volume and incidence of accountancy services is not substantial.

For any cases where ‘incidentality’ is not considered to be met, a PC will be required. This can be a complex area and if in doubt, members should consult the ICAEW Advisory Services team, who will discuss your circumstances against the above criteria.

You have a portfolio career

If you have a portfolio career, where you work for different businesses doing different activities, you need to assess each role against the guidance in the ICAEW Statement on members engaging in public practice. You will need a PC if you are acting as a public practitioner in any of your roles. 

For example, if you are carrying out audit cold file reviews for audit registered accountants, you will need a PC for this role. Providing compliance services (including file reviews) to firms of accountants is included in Annex 1 of the ICAEW statement, so you are considered to be in public practice.

However, the following roles do not require you to hold a PC:

An unpaid trustee for a local charity – you do not need a PC if you undertake this role gratuitously or receive no more than a token non-monetary reward or benefit.

A published author of technical accountancy papers – if you write technical papers on financial reporting and accountancy matters for training organisations, and the technical papers are generic (i.e, not offering client specific advice) you are not in public practice and do not need a PC for this role. 

A subcontractor to a public practitioner – if you are acting as a subcontractor to a public practitioner, you do not need a PC provided that you are not ‘held out’ as a principal and the firm supervises and controls your work and accepts responsibility for it.

You’re a portfolio finance director

If you’re a portfolio FD – a sole practitioner providing an outsourced finance director role for a number of companies – it is likely you’ll need a PC as you’ll be a principal in a public practice. 

Portfolio FDs usually provide accountancy services for multiple clients, such as providing tax advice and/or compliance work, financial statement preparation and/or management accounting, or other accountancy services outlined in Annex 1 to the ICAEW Statement.

You’re an interim finance director

If you’re working full-time as an interim finance director for an entity on a temporary contract, the need for a PC depends on whether you are a principal or are being held out as a principal. 

If you are providing the service as an employee (even if only on a temporary contract or via an agency) you do not need a PC unless the entity is an accountancy firm and you will be a principal or held out as one.

If you are self employed (acting as a subcontractor), you do not need a PC provided that you are not held out as a principal and the entity supervises and controls your work and accepts responsibility for it.

• Find out more about how the practising certificate guidelines are changing and whether these changes affect you by visiting ICAEW’s Practising Certificates hub.