Across Sevenoaks, Kemsing, Otford, Seal and the surrounding villages, local life relies on small charities: village hall committees, church and community trusts, sports clubs, school associations and local support groups. Most of them are run by volunteer trustees who give their time freely and would rather not worry about accounting rules.

So here’s some welcome news. For financial years ending on or after 30 September 2026, the government has raised several of the income thresholds that decide what kind of accounts a charity in England and Wales must prepare and whether they need an independent examination or an audit. Many smaller charities will find their requirements are now lighter.

The key changes at a glance

• Independent examination: now required where gross income is over £40,000 (previously over £25,000).
• Receipts and payments accounts: unincorporated charities and CIOs can now use this simpler format if income is £500,000 or less (previously £250,000).
• Accruals (SORP) accounts: now required where income is over £500,000.
• Professionally qualified examiner: needed where income is over £500,000 (previously £250,000).
• Audit: required where income is over £1.5 million, or income is over £500,000 and gross assets are over £5 million (previously £1 million, and £250,000 with £3.26 million of assets).

Some things haven’t changed. Registered charities with income over £10,000 must still submit an annual return to the Charity Commission. Those with income over £25,000 must still send their trustees’ annual report and accounts. Every charity must still prepare accounts, and registered charities must still prepare a trustees’ annual report.

Which year do the new limits apply to?

It depends on when your financial year ends, not when it starts. A charity with a 31 December year end will apply the new thresholds to its accounts for the year ending 31 December 2026. A charity with a 31 March year end will first use them for the year ending 31 March 2027. Accounts for years that ended before 30 September 2026 still follow the old limits.

Check your governing document

This is the point trustees most often miss. The law sets the minimum requirement, but your constitution, trust deed or articles may ask for more. Many older governing documents say the accounts must be “audited” or “examined” whatever the charity’s size. Funders, grant-makers and some local authorities also attach their own conditions. If your charity’s income has dropped below £40,000, don’t drop the independent examination until you’ve checked that nothing else requires one.

If your governing document is out of date, trustees can often amend it by following the procedure it sets out. Charity Commission guidance explains the options.

The new Charities SORP

Separately, a new version of the Charities Statement of Recommended Practice (SORP 2026) applies for financial years starting on or after 1 January 2026. It mostly affects charities that prepare accruals accounts. It brings changes to how certain income and leases are recognised, plus more reporting for larger charities. Smaller charities using receipts and payments accounts are not usually affected.

What is an independent examination?

An independent examination is a lighter-touch review than an audit. The examiner, who must be independent of the trustees, checks that the accounts agree with the records and that nothing has come to light that should be reported. The examiner then provides a report to go with the accounts. It gives trustees, members and funders reassurance without the cost of a full audit.

Even where an examination is no longer a legal requirement, some charities choose to keep one. It’s good practice and it supports grant applications.

Practical steps for trustees this autumn

• Note your financial year end and expected gross income for the year.
• Check your governing document and any funding agreements for audit or examination requirements.
• Decide whether receipts and payments accounts or accruals accounts are right for you.
• Diary the Charity Commission deadline. Annual returns and accounts are generally due within 10 months of your year end.

Frequently asked questions

Our village hall has income of about £30,000. Do we still need an independent examination?

Under the new law, not for financial years ending on or after 30 September 2026, unless your governing document or a funder requires one. You’ll still need to prepare accounts and file the right information with the Charity Commission.

Do these rules apply to charitable companies?

Charitable companies follow company law for their accounts and file them at Companies House. The charity thresholds still matter for audit and examination, though, so ask us to check your situation.

Do the changes apply in Scotland?

No. These thresholds apply to charities in England and Wales. Charities registered in Scotland or Northern Ireland follow their own regulator’s rules.

Friendly help for local charities

Coplestons is a long-established, personal practice in Kemsing, near Sevenoaks, and we’re glad to support local charities and their treasurers. We can prepare your accounts, carry out independent examinations where required, and help trustees understand what the new thresholds mean. See our services, find out more about us as accountants in Sevenoaks, or call 01732 762886 (Monday to Friday, 9am to 5pm). You can also contact us online.

Correct as at 20 October 2026 for charities in England and Wales. This is general information, not advice on your charity’s specific requirements.