Which accounts your charity has to file
The thresholds that decide it, and the changes the government intends to make on 1 October 2026.
Two separate questions decide what your charity has to do at the year end: what kind of accounts you prepare, and who has to look at them. Both are set by your gross income, and for the audit test by your assets as well.
What has to happen now
| Gross income | What is required |
|---|---|
| Under £5,000 | No requirement to register with the Commission at all, in most cases |
| Under £25,000 | Accounts prepared, but no external scrutiny required |
| £25,000 to £250,000 | Independent examination. The examiner does not have to be professionally qualified |
| £250,000 to £1m | Independent examination by a member of an approved professional body, and accruals accounts |
| Over £1m | Full audit |
| Over £250,000 with assets over £3.26m | Full audit |
What the government intends to change on 1 October 2026
After a consultation that closed in 2025, the government confirmed on 31 October 2025 that it intends to raise most of these thresholds from 1 October 2026. A statutory instrument has to be laid before it takes effect, so check the position before you rely on it.
| Threshold | Now | From 1 Oct 2026 |
|---|---|---|
| Independent examination required above | £25,000 | £40,000 |
| Qualified examiner required above | £250,000 | £500,000 |
| Accruals accounts required above | £250,000 | £500,000 |
| Audit required above (income) | £1m | £1.5m |
| Audit required above (assets, with income over £250,000) | £3.26m | £5m |
The registration thresholds are not changing. The government put the saving to the sector at around £47m a year, with roughly 11,000 charities dropping out of examination altogether and about 9,000 no longer needing a qualified examiner.
Receipts and payments, or accruals
A non-company charity under the accruals threshold can keep it simple: a summary of money in and money out, plus a statement of assets and liabilities. Above it, and for every charitable company whatever its size, you need accruals accounts prepared under the Charities SORP, which means a statement of financial activities, a balance sheet and notes, with restricted and unrestricted funds shown separately.
What an independent examination actually is
It is a lighter check than an audit. The examiner confirms the accounts agree to the records, that they comply with the law, and that nothing has come to their attention suggesting otherwise. They do not give an opinion on whether the accounts are true and fair. That is the audit, it costs several times as much, and most small charities never need one.
England and Wales. Scotland (OSCR) and Northern Ireland (CCNI) set their own thresholds and they are not the same.