New financial thresholds for charities in England and Wales took effect on 30 September 2026, bringing significant changes to accounting and external scrutiny requirements.
Certain changes, including changes to the audit threshold and the option to prepare a receipts and payments accounts threshold, are available to charities for financial years ending on or after 30 September 2026. Other changes, such as change to the donation refund threshold, came into force on 30 September.
Updated Charity Commission guidance
The Charity Commission has now updated its guidance to reflect the changes, including separate guidance according to whether a charity is a trust or unincorporated association, charitable company, or Charitable Incorporated Organisation (CIO). Its revised reporting and accounting guidance was updated in September alongside other guidance following the threshold changes. The Commission’s ‘threshold changes at a glance’ table summarises all the changes to thresholds for charities in England and Wales.
Pro bono independent examinations
There is also a useful change for ICAEW members who volunteer their expertise as (unpaid) independent examiners of charity accounts. ICAEW has updated its statement on members engaging in public practice following the change in thresholds. The limit relevant to members undertaking pro bono independent examinations without a practising certificate has increased from £250,000 to £500,000. The revised statement was approved in July and became effective from 1 October 2026.
Find out more
Charity Community members can revisit our earlier article, ‘New charity financial thresholds: what accountants need to know,’ for more detail on the changes and their implications.
