New charity audit and examination thresholds from 30 September 2026

Charity trustees reviewing their accounts against the new audit and examination thresholds

The charity audit thresholds and independent examination rules change on 30 September 2026. The new figures apply to charities in England and Wales, for financial years ending on or after that date.

Most coverage will focus on the audit and independent examination figures. Those matter, but they are not the changes most likely to alter what your charity does. This guide covers all of them, including the four that get less attention: receipts and payments accounts, who can examine your accounts, group accounts, and the income band where you need no scrutiny but must still file.

As sector specialists, Enaid Accountancy ensured they responded to the government’s consultation that led to these changes last year (DCMS, government response, 31 October 2025, Annex A).

What is changing

The changes are made by The Charities Acts 1992 and 2011 (Substitution of Sums) Order 2026, made on 17 April 2026.

ThresholdOldNew
Independent examination requiredIncome over £25,000Income over £40,000
Examiner must be professionally qualifiedIncome over £250,000Income over £500,000
Receipts and payments accounts allowed (non-company charities)Income up to £250,000Income up to £500,000
Audit required: income testIncome over £1 millionIncome over £1.5 million
Audit required: assets testAssets over £3.26 million and income over £250,000Assets over £5 million and income over £500,000
Group accounts and group auditGroup income over £1 millionGroup income over £1.5 million

The government estimates the changes will save the sector an average of £47 million a year (DCMS, 31 October 2025).

It depends on when your year ends

The Order does not apply to any financial year ending before 30 September 2026 (article 5(6)). So the test is your year-end date, not your year start date.

This is the opposite of the new Charities SORP, which applies to reporting periods that start on or after 1 January 2026. A charity with a year from 1 October 2025 to 30 September 2026 will use the new thresholds but the previous SORP. Our plain English guide to the Charities SORP 2026 explains the SORP side.

The government’s response originally gave 1 October 2026 as the intended start. The final legislation uses 30 September 2026. Some older articles still quote the earlier date.

Receipts and payments: the change most people will miss

Non-company charities in England and Wales can prepare simpler receipts and payments accounts instead of full accruals accounts if their income is below the threshold. That threshold doubles from £250,000 to £500,000.

The government says more than 5,130 non-company charities could now choose receipts and payments accounts (GOV.UK, 31 October 2025).

Two limits apply:

Who can examine your accounts?

If your income is over £40,000 and you do not need an audit, your accounts must be independently examined. Above a certain income, the examiner must also belong to one of the professional bodies listed in the Charities Act 2011.

That qualified examiner threshold rises from £250,000 to £500,000. The government estimates that around 9,000 charities will no longer need a qualified examiner, saving the sector £23 million a year (DCMS, 31 October 2025).

Below £500,000, trustees can appoint an independent examiner who is not professionally qualified. The examiner must still be independent of the charity and have the ability and practical experience to do the work. As charities move towards the £500,000 mark, the accounts often become more complex, particularly under the new lease and income rules in SORP 2026. The choice of examiner deserves the same care as before, and you must ensure, regardless, that your independent examiner is competent to complete the work required under CC32.

The new charity audit thresholds

A charity needs an audit if either test is met:

The government estimates the audit threshold change affects around 2,000 charities drawn into audit since the threshold was last updated in 2015 (DCMS, 31 October 2025).

Charitable companies. If company law requires a charitable company’s accounts to be audited, the Charities Act audit and examination rules do not apply to it (Charities Act 2011, section 147). Where a charitable company is exempt from audit under company law, the charity thresholds above decide what scrutiny it needs.

Group accounts

A parent charity must prepare group accounts, and have them audited, where group income is above the threshold. The threshold rises from £1 million to £1.5 million. If your charity has a trading subsidiary, check where your combined income now sits.

The gap between £25,000 and £40,000

This is the one most likely to catch people out.

A charity with income between £25,000 and £40,000 no longer needs its accounts independently examined. It must still send its Trustees’ Annual Report and accounts to the Charity Commission. The filing threshold stays at £25,000, and the annual return threshold stays at £10,000 (DCMS, 31 October 2025).

The requirement for scrutiny has moved. The requirement to file has not.

“Not required” is different from “not worth it”

Falling below a threshold does not automatically mean a charity should stop having an audit or examination. Three checks come first.

  1. Your governing document. Some governing documents require an audit or examination regardless of the legal threshold. Trustees must follow the governing document unless it is formally amended.
  2. Your funding agreements. Many grants require audited or examined accounts as a condition. Read the terms before you change anything.
  3. Your board’s own needs. An examination gives trustees independent assurance that the accounts are right. For a charity that has had a change of treasurer, a difficult year or a growth in income, that assurance has value beyond compliance.

Scotland and Northern Ireland

These changes apply only in England and Wales.

Scotland. Separate regulations raised the Scottish audit threshold from £500,000 to £1 million, for financial years beginning on or after 1 January 2026 (Charities Accounts (Scotland) Amendment Regulations 2025).

Northern Ireland. An audit is required where income is over £500,000, and the examiner must be qualified where income is over £250,000 (Charities Act (Northern Ireland) 2008, section 65).

Not every source has caught up

On 16 September 2026 the Charity Commission published new guidance on preparing annual accounts, with separate guides for trusts and unincorporated associations, charitable companies and CIOs.

Not all websites have been updated to match. Some pages and articles online still quote the previous thresholds, or the 1 October date from the original government response. If you are checking a figure, the legislation and the Commission’s page on changes to charity accounting and reporting are the reliable sources.

Frequently asked questions

When do the new charity audit thresholds apply?

They apply to financial years ending on or after 30 September 2026. A year ending before that date uses the old thresholds.

What is the new independent examination threshold?

Charities in England and Wales with income over £40,000 need an independent examination, unless they need an audit. The previous threshold was £25,000.

What is the new charity audit threshold?

An audit is required where income is over £1.5 million, or where gross assets are over £5 million and income is over £500,000.

Do I still need to file accounts if my income is under £40,000?

Yes, if your income is over £25,000. The filing threshold has not changed.

Can a charitable company prepare receipts and payments accounts?

No. Charitable companies must prepare accruals accounts under company law.

Speak to us about your next year-end

Enaid Accountancy carries out independent examinations and prepares year-end accounts for charities across England and Wales. If you are not sure which thresholds apply to your next set of accounts, or whether dropping an examination is the right call, get in touch with the team.

Sources