The new thresholds are in. Here's what to check.
The new thresholds are now in force
The accounting thresholds for charities in England and Wales went up on 30 September. The new figures apply to any financial year ending on or after 30 September 2026.
| What it decides | Old threshold | New threshold |
|---|---|---|
| Independent examination needed | Income over £25,000 | Income over £40,000 |
| Examiner must be professionally qualified | Income over £250,000 | Income over £500,000 |
| Receipts and payments accounts allowed (not charitable companies) | Income under £250,000 | Income under £500,000 |
| Audit needed | Income over £1m, or assets over £3.26m where income is over £250,000 | Income over £1.5m, or assets over £5m where income is over £500,000 |
So if your year ended on 30 September, you're one of the first to be covered. If it ends on 31 March, the new figures will apply to the year you're in now. There's a fuller guide on the threshold changes.
Three things worth putting on the agenda for your next meeting:
- Find your income figure and see which row you now fall in. A charity with income of £32,000, for example, no longer needs an independent examination by law, for a year ending on or after 30 September 2026.
- Check your governing document before you change anything. Some constitutions name their own figure, or just say the accounts will be examined, and that wording still binds you until you change it. Funders and grant conditions can ask for the same.
- If you are a non-company charity with income between £250,000 and £500,000, you can now choose the simpler receipts and payments accounts. Talk to your examiner before you decide, as the accounts will look quite different from last year's.
If you're registered with OSCR in Scotland or the Charity Commission for Northern Ireland, these changes don't apply to you, as each has its own rules.
One job for this month: charitable companies, get every director verified before 18 November
If your charity is a company limited by guarantee, every director (that's every trustee) needs to have verified their identity with Companies House. Existing directors do this in time for the company's next confirmation statement, and the one-year window for that closes on 18 November 2026.
Each director verifies once, for free, through GOV.UK One Login, and gets a personal code. The company then gives that code when it files the confirmation statement. Have photo ID, such as a passport or driving licence, to hand.
The practical job is to ask at your next meeting: has everyone done it? If you're a CIO or an unincorporated charity, this doesn't apply to you.
Looking ahead: year-end in December? You'll be first under the new SORP
The new Charities SORP applies to financial years beginning on or after 1 January 2026. For charities with a 31 December year-end, that means the accounts you close this December will be the first prepared under it.
It only matters if you prepare accruals accounts. If you use receipts and payments, the SORP doesn't apply to you. Most small charities will sit in Tier 1 (income up to £500,000), which carries the lightest requirements. Have a word with whoever prepares your accounts before the year-end.
The minute-taker's tip: minute what happened after a declaration
Most minutes say something like "Jane declared an interest in item 6" and stop there. They should also say what she did next: whether she left the room, whether she took part in the discussion, and that she didn't vote. For example:
Jane Smith declared an interest in item 6 as a director of the supplier. She left the meeting for this item and took no part in the discussion or decision.
That one sentence shows how the decision was made. Add the declaration to your register of interests too, if it isn't already there.
Free on the site
- Managing conflicts of interest, a plain-English guide to declarations, the register and what to minute
- A pack for treasurers, including guidance on the treasurer's report to the board
- The deadline checker, which works out your filing dates from your year-end
Rachel Wall ACG, The Committee Room
Sources: GOV.UK, Changes to charity accounting and reporting; GOV.UK, When you need to verify your identity for Companies House. This is governance guidance rather than legal advice.