The charity thresholds will soon change – for UK charities with a year ending on or after the 30 September 2026:
- Gross income – increasing from £1m to 1.5m
- Assets test – increasing from £3.26m to £5m
The charity threshold for smaller charities that require an independent examinations also increases:
- Income – increasing from £25k to £40k
The threshold for charities to continue to prepare accounts on a cash basis:
- Cash basis – increases from £250k to £500k
Note that the new Charities SORP 2026 comes into effect for periods starting on or after the 1 January 2026. The new SORP divides charities into 3 tiers; with reduced reporting for smaller charities and more relevant reporting for mid sized charities and greater and more relevant reporting for larger charities.
Millet Audit are a London based audit firm with reach across the UK, focused on supporting not for profit and charitable organisations. To see how we can support your organisation feel free to reach out to Andrew Millet @ andrew@milletaudit.com
A relevant and important source: https://www.gov.uk/guidance/changes-to-charity-accounting-and-reporting#changes-to-the-charities-sorp-new-rules-for-charities-preparing-accruals-accounts
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