Charity Accounting Thresholds 2026: What Changes
New charity accounting thresholds apply to years ending on or after 30 September 2026. What changes for independent examination and audit, and for grant bids.
New accounting thresholds for charities in England and Wales came into force on 30 September 2026. They raise the income levels for independent examination, audit and simpler accounts, so many smaller charities need less scrutiny than before. Here is what changed, who it applies to, and what it means when a funder asks for your accounts. With Trustees' Week running from 9 to 13 November, it is a good month to check.
Last checked: 2 November 2026. All figures below come from the Charity Commission's pages on GOV.UK.
The new thresholds at a glance
| Requirement | Year ending before 30 Sep 2026 | Year ending on or after 30 Sep 2026 |
|---|---|---|
| Accounts must be independently examined | Income over £25,000 | Income over £40,000 |
| Examiner must be professionally qualified | Income over £250,000 | Income over £500,000 |
| Unincorporated charities and CIOs can use receipts and payments accounts | Income £250,000 or less | Income £500,000 or less |
| Accounts must be audited | Income over £1,000,000 | Income over £1,500,000 |
| Audit because of assets | Income over £250,000 and assets over £3,260,000 | Income over £500,000 and assets over £5,000,000 |
| Group accounts prepared and audited | Group income over £1,000,000 | Group income over £1,500,000 |
Some things have not changed. A registered charity with income over £10,000 still sends an annual return to the Commission, and one with income over £25,000 still sends its trustees' annual report and accounts. Source: Charity Commission threshold changes at a glance.
Who the new rules apply to, and from when
The changes apply to charities in England and Wales, for accounting years that end on or after 30 September 2026. What counts is when your financial year ends, not when you prepare the accounts.
- If your year ended on 31 March 2026, you are working to the old thresholds now.
- If your year ends on 31 December 2026 or 31 March 2027, the new thresholds apply.
Scotland and Northern Ireland have their own regulators and rules. Scottish charities should check with OSCR and charities in Northern Ireland with the Charity Commission for Northern Ireland.
Separately, Charities SORP 2026 brings three reporting tiers for accruals accounts, for periods starting on or after 1 January 2026. The Charity Commission's summary covers both changes.
Independent examination: what changes
A charity with income of £40,000 or less no longer needs an independent examination by law. Your accounts still need to be prepared and, above £25,000, sent to the Commission.
Two things can still require an examination:
- Your governing document. Some constitutions say accounts must be examined or audited. If yours does, that rule still binds you until you change it.
- Your funders. A grant agreement can ask for examined accounts whatever the law says.
Between £40,000 and £500,000, an independent examination is still needed, but the examiner no longer has to hold a professional qualification until income passes £500,000.
Audit: what changes
Audit now starts at income over £1.5 million, or over £500,000 if you also hold assets over £5 million. Charitable companies should check company law too, and anyone close to a threshold should speak to their accountant before dropping an audit.
What funders will ask to see
Most funders ask for your latest accounts, and some write their guidance around the old figures. Here is what four funders on GrantMatch ask for, checked on their own pages today:
- Garfield Weston Foundation Regular Grants (under £100,000) fund charities with at least one year of accounts. You send either examined or audited accounts, or a copy of your Charity Commission annual return. Its April 2026 guidelines still describe the old £25,000 examination threshold, so if your accounts are not examined under the new rules, say why.
- Esmée Fairbairn Foundation offers grants from £30,000 and does not fund organisations with a turnover under £100,000, as shown in the latest set of accounts.
- BBC Children in Need Core Costs wants accounts no more than 18 months old, signed by a trustee, with an income statement and a balance sheet. It does not accept micro accounts.
- National Lottery Awards for All England (£300 to £20,000) asks for your financial year end and latest annual income. Groups less than 15 months old without yearly accounts can still apply.
If your accounts will not be examined this year, check with the funder before you apply, rather than paying for an examination you may not need.
What to do this month
- Find your year end and work out which thresholds apply.
- Read your governing document for any rule about examination or audit.
- Check your grant agreements for reporting conditions.
- Talk to your examiner or accountant about this year's accounts.
- Minute the decision at your next trustee meeting, so the reasons are on record.
Questions people ask
Do small charities still have to send accounts to the Charity Commission? Yes, if income is over £25,000. That threshold has not changed.
We earn £35,000. Can we stop having our accounts examined? By law, yes, for a year ending on or after 30 September 2026, unless your governing document or a funder requires it. You can still choose to have one.
Does this apply to CICs? No. Community interest companies follow company law, not charity accounting rules.
For more on funding, see our guide to grants for charities or browse charity grants open now.
Want funding news like this as it happens? Create a free GrantMatch account and we'll email you new grants that fit your charity.
We check every figure on the official or funder website before publishing. Rules do change, so always confirm on GOV.UK or with your regulator before acting.