Chapter 16: PRPG CPD regulations and guidance notes Flashcards
16.1 CPD regulations
The regulations came into force on 1 Jan 2017. Membership obligations are part of the PRPG. Compliance is compulsory for CIOT/ATT and ADIT members who provide tax compliance services, advice and consultancy in tax. Also applies to people who use the designation CTA and ATT. Members are required to self-certify annually they complied, and breach of the regulations may constitute grounds for disciplinary action.
Principles - CPD is the requirement to maintain skills necessary to carry out professional duties competently. When planning CPD, members need to consider the fundamental principles of the PRPG. This ensures protection of the public, protection of the CIOT/ATT’s reputation and the protection of the member’s professional standing.
Recording CPD – CPD year runs 1 Jan to 31 Dec. Member must keep a record of all CPD undertaken and the records must be kept for the current year plus a minimum of three previous complete calendar years. There is no prescribed form, members are responsible for their own records.
Compliance – If CIOT/ATT members breach CPD it could result in a deferral to the Taxation Disciplinary Board. The CIOT/ATT will make random checks to members to send in their CPD records. Members subject to disciplinary proceedings must retain their CPD records for the proceedings, any investigation of a complaint may include checking a member’s CPD records.
16.2 CPD Guidance Notes
CPD introduced in 1991 and was compulsory from 1996. In 2017 the regulations were updated; the two key changes were;
• recognising the variety of roles members have, the regulations apply to all members working in tax or holding themselves as members whether in the UK or overseas
• the CPD focus is on the learning outcome achieved rather than on the number of hours spent. The CIOT/ATT have also adopted this approach
The scheme ensures members maintain and build on technical knowledge obtained by studies and career progression. Maintenance of relevant competence and adherence to professional standards upholds the highest standards of practice and to enhance public confidence in the integrity of professional services in tax. Fully retired members and members not falling into the regulations are exempt from CPD.
Why are tax members required to undertake CPD – so members understand new tax legislation and develop their technical skills to meet the obligations necessary to provide services. The regulations apply to members in practice as well as employees. For the avoidance of doubt tax includes direct tax, indirect tax, levies, national insurance and any welfare or benefits issued by HMRC, devolved tax authorities and overseas equivalents.
Non-tax members undertaking CPD – members holding themselves as belonging to the CIOT/ATT/ADIT must maintain their CPD in order to uphold the professional standards of these bodies and maintain public trust in those using the designations. In these cases, the CPD expected would be the CPD relevant to the member’s role.
Designation – this means the use of the following after the name of the individual, CTA, ATII, ATT, ADIT affiliate etc. This includes but is not limited to the use of letters, business stationary, websites, emails and social media. Honorary members who use designated letters are not required to undertake CPD unless they fall within the definition in the regulation.
16.2 Guidance Notes part 2
CPD Step One – Planning: Members should consider their CPD objectives each year and consider CPD opportunities available to them. In determining what they need for CPD, members should plan based on existing knowledge and skills that need to be maintained to carry out duties competently. They should consider areas identified for development as a result of changing legislation and client feedback.
Step two – undertaking CPD: members will meet requirements by completing step one and performing CPD as is appropriate to their duties. Members should include an element of professional standards material in their annual CPD. The current trend is to move away from the hours-based approach to CPD and plan their CPD requirements based on individual member’s circumstances. The CPD hours approach (2016: CIOT 90 hours and ATT 45 hours) is still relevant to the work undertaken by the member.
Step three – outcome: having recorded the CPD during the year, members should consider the outcome and effectiveness of the CPD undertaken. This may lead to the preparation of the individual CPD plan for next year.
What activities count as CPD:
• attendance at talks, conferences, committee meetings and similar events organised by CIOT/ATT and similar training issued by other professional bodies, professional firms and companies
• computer based training packages
• learning at work, firms training meetings, coaching and mentoring
• technical discussion on client matters, new legislation and case law
• studying for a relevant further qualification
• developing and presenting tax-relevant training material
• writing books, articles and reviews
• reading technical journals such as Tax Adviser
• researching the answer to a technical query
• reading material relevant to your role, such as AML or data protection guidance
• nontax technical subjects such as practice management, soft skills and IT skills relevant to your role
16.2 Guidance Notes (queries)
If you are not able to undertake the required CPD one year, you should aim to rebalance it the following year. For members who continue to record their CPD hours you will be considered to have met CPD requirements if you average out the requirements over three consecutive years.
At a minimum you should keep these CPD records, the date the CPD was undertaken and details of learning or activity and they expect members to be able to explain why the level of CPD undertaken is appropriate.
Members may suspend CPD when they are temporarily not working. But the ATT/CIOT recommends they meet the CPD requirements on a voluntary basis as a means of ensuring that they keep up to date, which is important when the member returns to work.
It is likely that compliance with the CPD requirements of your other professional body and in-house training by employers will count towards your CIOT/ATT requirements. However, to count towards the CIOT/ATT requirements it must be relevant to your work.
If you are retired and carry out voluntary work for charities, you need to assess your training needs to ensure your technical knowledge is up to date. The CIOT/ATT however do not consider members solely assisting family or friends needing to perform CPD, providing they are not paid and do not hold themselves out to HMRC or their family and friends using the designatory titles.
All members are required to make a declaration on-line as part of their annual return. alternatively, a paper return can be downloaded from the websites. The declaration asks you if you have completed your CPD obligations.
