Running a charity is rewarding - but when it comes to accounts and reporting, it can sometimes feel like navigating a maze. The good news? Once you know the thresholds, it’s much easier to see which rules apply to your organisation.
Why thresholds matter
Charities come in all shapes and sizes, and so do the rules that govern them. Whether you’re a small community group or a larger charitable incorporated organisation, understanding the reporting and compliance requirements can save you time, stress, and even penalties. Think of thresholds as your roadmap: they show you when certain obligations kick in, so you know exactly what to do - and when.
The charity accounting “map”
Here’s a quick guide to the main activities and their thresholds:
Activity | Threshold |
| To register a charity | Over £5,000 |
| To register as a Charitable incorporated organisation | From start up |
| To prepare a charity accounts with trustees report | All charities |
| To submit accounts to the charity commission | Income over £25,000. Charities who are companies as well need to submit their accounts to Companies House |
| To submit an annual report to the charity commission | Some questions for all |
| To prepare receipts and payments accounts | Under £250,000 of income for non-company, from September 2026 this will increase to £500,000 |
| To prepare accruals accounts (following SORP) | Over £250,000 of income or a company, from September 2026 this will increase to £500,000 |
| To have an independent examination | Income over £25,000 but under £1m income or balance sheet under £3.26m and income under £250,000. From September 2026 this will increase to over £40,000, but under £1.5m income or balance sheet under £5m and income under £500,000 |
| To have an audit | Over £1m income or balance sheet over £3.26m and income over £250,000. From September 2026 this will increase to over £1.5m income, or balance sheet over £5m and income over £500,000 |
A quick note: some charities - known as exempt or excepted charities - don’t have to report results to the Charity Commission, but still need to prepare accounts in the required formats.
Making sense of it all
At first glance, thresholds can feel complicated. But once you know where your organisation sits, compliance becomes much simpler. And remember, these rules aren’t just bureaucratic hoops - they’re in place to help you maintain transparency, accountability, and trust with your supporters.
If you’re ever unsure what these thresholds mean for your charity, our team is here to guide you. From understanding whether you need an independent examination to helping you navigate the Charity Commission’s requirements, we can make compliance straightforward - so you can focus on making a difference.