Charity accounting thresholds rise for September 2026 year-ends

Three Charity Commission pages now warn that charity accounting thresholds are changing for financial years ending on or after 30 September 2026 — the annual-return guide, the trustees' independent-examination guide (CC31) and the examiners' guide (CC32)GOV. The pages themselves carry only the warning and a pointer; the new figures sit in the Commission's changes-to-charity-accounting-and-reporting guidance, following a Department for Culture, Media and Sport announcement after public consultation.

The new thresholds, expected to take effect on 30 September 2026GOV and applying to accounting years ending on or after that dateGOV, raise every boundary:

Accounts must be independently examined: income over £25,000 becomes income over £40,000GOVGOV. Examination by a professionally qualified independent examiner: income over £250,000 becomes income over £500,000GOVGOV. Non-company charities' option to prepare receipts-and-payments accounts: income below £250,000 becomes income below £500,000GOV. Full audit: income over £1,000,000 becomes income over £1,500,000, and the assets limb rises from £3,260,000 to £5,000,000GOVGOV. Group accounts preparation and audit: aggregate group income £1,000,000 becomes £1,500,000GOVGOV. The stated aim is to reduce costs and administrative effort for smaller charities.

What the three changed pages do with this is signposting, with one substantive cut. The annual-return page drops its old full-audit triggers (£1m income; £3.26m gross assets with £250k income) and its unconditional "get your accounts checked" duty, recasting the filing requirement as providing an independent examiner's or auditor's report only if the charity is required to have its accounts examined or audited — and adds the banner pointing to the new-figures guidance for years ending on or after 30 September 2026. CC31 replaces its opening statement of the £25,000 examination duty and the £250,000 qualified-examiner rule with the same banner, noting the printed figures apply only to years ending before 30 September 2026. CC32 gains the equivalent banner at the top.

Separately, charities preparing accruals accounts face SORP 2026 for reporting periods starting on or after 1 January 2026GOV, with new income and lease rules, three reporting tiers (income up to £500,000; £500,000 to £15 million; over £15 million)GOV, refreshed trustees' annual report requirements on reserves, future plans, impact and environmental, social and governance matters, plus simplified social-investment and provisions reporting.

A charity with a 30 September 2026 year-end is the boundary case: its year ends on the effective date, so the new thresholds applyGOV. Trustees should check which side of each new boundary their charity falls on before commissioning an examination or audit — a charity with £30,000 income, previously needing independent examinationGOV, will not; one with £300,000 income keeps examinationGOV but no longer needs a qualified examinerGOV.

Legal basis: Charities Act thresholds as changed by DCMS following the consultation on financial thresholds in charity law, expected in effect 30 September 2026GOV; Charities SORP 2026 for periods starting on or after 1 January 2026.