The Charity Commission is urging charity trustees and professional advisers to familiarise themselves with updated accounting guidance following changes taking effect during 2026.
The updated guidance reflects the introduction of SORP 2026, which applies to financial years beginning on or after 1 January 2026, alongside changes to the financial thresholds that determine how charities in England and Wales must prepare and scrutinise their accounts.
For financial years ending on or after 30 September 2026, the new thresholds include:
- Accruals accounts: required for charities with income above £500,000, increased from £250,000.
- Independent examination: required above £40,000 income, increased from £25,000.
- Audit: required where gross income exceeds £1.5 million, or where income exceeds £500,000 and gross assets are over £5 million.
The Charity Commission has also introduced separate guidance covering the three main charity structures: trusts and unincorporated associations, charitable companies and Charitable Incorporated Organisations (CIOs).
Trustees are encouraged to check which requirements apply to their charity, particularly where their financial year ends on or after 30 September 2026.
Read the full Charity Commission announcement and access the updated guidance