The Charity Commission's financial thresholds for England and Wales have gone up. For many small charities, the biggest change is that an independent examination is now needed only above £40,000 of income, up from £25,000. This guide sets out the new figures, which year they apply to, and what hasn't changed.
Which year the new thresholds apply to
The Commission's threshold changes at a glance (updated 16 September 2026) applies the new figures to financial years ending on or after 30 September 2026.
So a charity with a 31 December year end uses the new thresholds for the year ending 31 December 2026. A charity whose year ended 31 March 2026 uses the old ones for that year.
The figures
From the Commission's table (England and Wales):
| Requirement | Years ending before 30 Sep 2026 | Years ending on or after 30 Sep 2026 |
|---|---|---|
| Annual return to the Commission | income over £10,000 | income over £10,000 (unchanged) |
| Send trustees' annual report and accounts to the Commission | income over £25,000 | income over £25,000 (unchanged) |
| No independent examination or audit needed (unless the governing document says so) | income £25,000 or less | income £40,000 or less |
| Independent examination required | 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 may use receipts and payments accounts | income £250,000 or less | income £500,000 or less |
| Audit required | income over £1,000,000 | income over £1,500,000 |
| Audit required (income and assets test) | income over £250,000 and assets over £3.26m | income over £500,000 and assets over £5m |
Three things that catch people out
1. The £25,000 filing threshold hasn't moved. A charity with income between £25,000 and £40,000 may no longer need an examination. But on the table above it still sends its trustees' annual report and accounts to the Commission.
2. Your governing document can still require one. The table says no examination or audit is needed "unless the charity's governing document says you should". Some constitutions require an independent examiner or auditor whatever the income, and a funding agreement can too. Check both before you drop the examination.
3. Charitable companies follow company rules. The Commission's rules for charitable companies give their thresholds separately. The figures also move to £40,000, £500,000 and £1.5 million for years ending on or after 30 September 2026. But "all charitable companies must prepare accruals accounts", so they can't use receipts and payments.
Worked example (round numbers)
A village hall charity (unincorporated, 31 December year end) had income of £32,000 in the year to 31 December 2026.
- Old rules: over £25,000, so an independent examination was needed.
- New rules (year ends on or after 30 September 2026): £40,000 or less, so no examination, unless its constitution or a funder requires one.
- It's still over £25,000, so it still sends the trustees' annual report and accounts to the Commission.
- It's under £500,000 and unincorporated, so it can use receipts and payments accounts.
Scotland and Northern Ireland
These figures are for England and Wales. OSCR (Scotland) and the Charity Commission for Northern Ireland set their own rules.
FAQ
Has the change started? The Commission's guidance applies the new thresholds to financial years ending on or after 30 September 2026.
Our examiner always checks our accounts. Should we stop? That's for the trustees, after checking the governing document and any funding agreements. Funders or members may still expect one.
Does a lower requirement change how the accounts are prepared? No. The trustees still prepare and approve the accounts. At £40,000 or less they may not need an examiner to review them, if the governing document allows.
Preparing the accounts
Whether or not you need an examiner, treasurersheet drafts the receipts and payments account (Section A of the CC16 layout) and cash at bank from your bank statements. You add any other assets and liabilities. It runs a bank check, and lists every transaction so a trustee or examiner can follow the working. Your first statement is free. The trustees still check and approve the accounts.
This isn't accounting or legal advice. Check the Charity Commission's threshold guidance or an independent examiner for your charity, and check the figures before you submit or file anything.