As more and more accountants become familiar with and start to use AI tools in their practice work, it is ever more important to be aware of and familiar with the ethical rules around use of such tools, especially in the field of any tax work, where incorrect advice can be very costly to the practice.

AI tools are systems that infer patterns and produce outputs (like predictions, recommendations, content) based on inputs. As the inputs determine what output is produced by the tools, these can vary in autonomy and complexity. Importantly, AI outputs on their own are not authoritative tax or legal advice and therefore appropriate safeguards should be put in place to avoid unrestricted or unchecked use of AI tools in practice.

The Professional Conduct in Relation to Taxation (PCRT) guidance provides a framework for professional behaviour and industry standards in tax matters. A new helpsheet, Topical guidance: the ethical use of AI tools in tax work, was issued in January, which complements, but does not replace, the main PCRT ethical framework.

This guidance is for use by members, regulated firms and staff using or considering using AI tools in UK tax-related work. It should be noted that this is ethical guidance, not technical instructions on how to operate AI. As such, it is designed to complement, not replace, the main PCRT ethical framework and members remain ultimately responsible for all work, including that supported by AI.