Charity audit threshold checker (from 1 October 2026)

DCMS confirmed on 31 October 2025 that for accounting periods ending on or after 1 October 2026, the Charity Commission's headline thresholds rise broadly with inflation. Independent examination is now required from £40,000 gross income (was £25,000). The qualified-examiner threshold rises from £250,000 to £500,000. The receipts-and-payments option ceiling rises from £250,000 to £500,000. The audit threshold rises from £1m income / £3.26m assets to £1.5m income / £5m assets. Periods ending before 1 October 2026 still follow the old thresholds.

Yes, frequently. Many older constitutions require an audit even where the law doesn't, or specify a particular qualification for the examiner. Check your governing document before commissioning examination work. If you want to drop a self-imposed audit, that usually requires a constitutional amendment with Charity Commission approval (for England & Wales charities).

Major funders — Big Lottery, statutory funders, large grant-makers — frequently require audited accounts as a grant condition regardless of legal thresholds. Always check the small print of grant agreements before deciding scrutiny level. Some funders are flexible if you can show why an IE is sufficient, others aren't.

An independent examination is a limited-scope review by a competent person, who confirms that the accounts agree with the underlying records and that there's nothing materially wrong. It's cheaper and quicker than an audit. An audit is a full Companies Act-equivalent process — sampling transactions, testing internal controls, providing an independent opinion on whether the accounts give a true and fair view. Audits cost £3,000–£15,000+ for small charities; an IE typically £600–£2,500.

For income up to £500k, any competent person independent of the charity. Many trustees use a local accountant, retired finance professional, or charity-experienced bookkeeper. For income above £500k (the qualified examiner threshold), the examiner must hold a qualifying accountancy qualification (ICAEW, ICAS, ACCA, AAT MAAT, CIPFA, AIA, ICAEW affiliate, or similar — Charity Commission CC32 lists the recognised bodies). For audit, the auditor must be a registered auditor with one of the recognised supervisory bodies.

Independent examination and audit thresholds yes — they're set by the Charities Act 2011 and apply to all registered charities in England & Wales regardless of structure. But charitable companies must always prepare accruals accounts under the Companies Act 2006 — receipts and payments is never an option, no matter how small. Charitable companies also have a separate audit-exemption regime under the Companies Act with different (lower) thresholds, but charity audit thresholds take precedence where they're stricter.

The threshold test is annual, so a single high-income year can trigger audit even if the charity is normally well below. Plan ahead: if you know a one-off grant or legacy will push income above £1.5m, commission an audit early (auditors get booked up). If your income normally hovers near a threshold, consider building in scrutiny one tier up so you're not switching providers every year.

Different regimes. Scottish charities follow OSCR's rules under the Charities and Trustee Investment (Scotland) Act 2005 — the IE threshold is £25k, audit is £500k, with no near-term increase planned. NI charities follow CCNI under the Charities Act (Northern Ireland) 2008 — IE/audit triggers are tied to registration status and income, currently under review. Use the regulator's site for current thresholds.