Charity accounts route checker (England and Wales): examination, qualified examiner or audit, and receipts and payments accounts

The rules, in their own words

Source: The Charities Acts 1992 and 2011 (Substitution of Sums) Order 2026, S.I. 2026/427, as made, legislation.gov.uk. Read 29 October 2026.

The Charities Acts 1992 and 2011 (Substitution of Sums) Order 2026, article 3 (amendment of the 2011 Act):

3.—(1) The 2011 Act is amended as follows.

(3) In section 133 (account and statement an option for lower-income charities), in the words before paragraph (a), for “£250,000” substitute “£500,000”.

(4) In section 144 (audit of accounts of larger charities)(8), in subsection (1)—

(a) in paragraph (a), for “£1 million” substitute “£1.5 million”;

(b) in paragraph (b), for “£3.26 million” substitute “£5 million”.

(5) In section 145 (examination of accounts an option for lower-income charities)(9)—

(a) in subsection (1), in the words before paragraph (a), for “£25,000” substitute “£40,000”;

(b) in subsection (3), in the words before paragraph (a), for “£250,000” substitute “£500,000”.

Article 5(6) of the same Order, the transitional rule:

(6) The amendments made by articles 3(3) to (5) and 4 do not apply in relation to any financial year of a charity ending before 30th September 2026.

Article 1(1) of the same Order:

1.—(1) This Order may be cited as the Charities Acts 1992 and 2011 (Substitution of Sums) Order 2026 and comes into force on 30th September 2026.

The transitional rule is article 5(6). It turns on the day the financial year ends, not on the day the accounts are prepared or signed.

Source: Charities Act 2011, section 133, legislation.gov.uk (consolidated text). Read 29 October 2026.

Section 133 (account and statement an option for lower-income charities), as the consolidated page showed it on 29 October 2026, the substitution listed as yet to be applied to its text:

If a charity's gross income in any financial year does not exceed £250,000, the charity trustees may, in respect of that year, elect to prepare—

(a) a receipts and payments account, and

(b) a statement of assets and liabilities,

instead of a statement of accounts under section 132(1).

The same page's note under "Changes and effects yet to be applied to Section 133":

s. 133 sum substituted by S.I. 2026/427 art. 3(3)

So for a financial year ending on or after 30 September 2026 the section 133 sum is £500,000 (article 3(3) above); the consolidated page had not yet applied that to its text when we read it. Section 133 is not open to a charitable company.

Source: Charities Act 2011, section 144, legislation.gov.uk (consolidated text, as in force from 30 September 2026). Read 29 October 2026.

Section 144 (audit of accounts of larger charities), as in force from 30 September 2026 (the page's amendment markers F1 and F2 omitted):

(1) Subsection (2) applies to a financial year of a charity if—

(a) the charity's gross income in that year exceeds £1.5 million, or

(b) the charity's gross income in that year exceeds the accounts threshold and at the end of the year the aggregate value of its assets (before deduction of liabilities) exceeds £5 million.

“The accounts threshold” means the sum for the time being specified in section 133 (account and statement an option for lower-income charities).

(2) If this subsection applies to a financial year of a charity, the accounts of the charity for that year must be audited by a person who—

(a) is eligible for appointment as a statutory auditor under Part 42 of the Companies Act 2006, or

(b) is a member of a body for the time being specified in regulations under section 154 and is under the rules of that body eligible for appointment as auditor of the charity.

For a year ending before 30 September 2026 the sums in section 144(1) were £1 million and £3.26 million (article 3(4) above), and the accounts threshold was £250,000.

Source: Charities Act 2011, section 145, legislation.gov.uk (consolidated text, as in force from 30 September 2026). Read 29 October 2026.

Section 145 (examination of accounts an option for lower-income charities), as in force from 30 September 2026 (the page's amendment markers F1 to F3 omitted):

(1) If section 144(2) does not apply to a financial year of a charity but its gross income in that year exceeds £40,000 the accounts of the charity for that year must, at the election of the charity trustees, be—

(a) examined by an independent examiner, that is, an independent person who is reasonably believed by the trustees to have the requisite ability and practical experience to carry out a competent examination of the accounts, or

(b) audited by a person within section 144(2)(a) or (b).

(3) If subsection (1) applies to the accounts of a charity for a year and the charity's gross income in that year exceeds £500,000 a person qualifies as an independent examiner for the purposes of subsection (1)(a) if (and only if) the person is independent and—

(a) a member of one of the bodies listed in subsection (4), or

(b) a Fellow of the Association of Charity Independent Examiners.

(4) The bodies referred to in subsection (3)(a) are—

(a) the Institute of Chartered Accountants in England and Wales;

(b) the Institute of Chartered Accountants of Scotland;

(c) the Institute of Chartered Accountants in Ireland;

(d) the Association of Chartered Certified Accountants;

(e) the Association of Authorised Public Accountants;

(f) the Association of Accounting Technicians;

(g) the Association of International Accountants;

(h) the Chartered Institute of Management Accountants;

(i) the Institute of Chartered Secretaries and Administrators;

(j) the Chartered Institute of Public Finance and Accountancy.

(k) the Institute of Financial Accountants;

(l) the Certified Public Accountants Association.

For a year ending before 30 September 2026 the sums in section 145(1) and (3) were £25,000 and £250,000 (article 3(5) above).

Source: Threshold changes at a glance, the Charity Commission on gov.uk, updated 16 September 2026. Read 29 October 2026.

Threshold changes at a glance (gov.uk): rows of its table, the three cells of each row separated by a bar:

Requirement | Threshold for financial years ending before 30 September 2026 | Threshold for financial years ending on or after 30 September 2026

Accounts do not need to be independently examined or audited (unless the charity’s governing document says you should) | Income £25,000 or less | Income £40,000 or less

Unincorporated charity and CIO can prepare receipts and payments accounts | Income £250,000 or less | Income £500,000 or less

Accounts must be independently examined | Income over £25,000 | Income over £40,000

Examination must be by a professionally qualified Independent Examiner | Income over £250,000 | Income over £500,000

Accounts must be audited | Income over £1,000,000 | Income over £1,500,000

Accounts must be audited | Income over £250,000; and Assets over £3,260,000 | Income over £500,000; and Assets over £5,000,000

Source: Charity accounts: rules for charitable companies, the Charity Commission on gov.uk, updated 16 September 2026. Read 29 October 2026.

Charity accounts: rules for charitable companies (gov.uk):

All charitable companies must prepare accruals accounts.

Charitable companies that are required to have an audit under the Charities Act 2011, but which do not require an audit under the Companies Act 2006, must include a statement on the balance sheet that the company is exempt from a Companies Act audit.

Some charitable companies must have an audit under the Companies Act 2006. Charitable companies that are exempt from a Companies Act audit must include a statement on the balance sheet

That is why this page gives no firm answer for a charitable company: Company law has its own audit rules; check them and take advice.

Source: Charity accounts: rules for Charitable Incorporated Organisations (CIOs), the Charity Commission on gov.uk, updated 16 September 2026. Read 29 October 2026.

Charity accounts: rules for Charitable Incorporated Organisations (CIOs) (gov.uk):

You can prepare receipts and payments accounts if your CIO’s gross income is £250,000 or less - unless your governing document says you must prepare accruals accounts or you choose to.

Your CIO can prepare receipts and payments accounts if its gross income is £500,000 or less - unless your governing document says you must prepare accruals accounts or you choose to.

How the page decides

• Which set: a financial year ending on or after 30 September 2026 takes the new sums; one ending before that takes the old sums (article 5(6)). Both sets are shown side by side, the applying one marked.
• Audit (section 144(1)): gross income over the audit threshold (£1.5 million new, £1 million old); or gross income over the accounts threshold (£500,000 new, £250,000 old) and gross assets before liabilities over the asset limb (£5 million new, £3.26 million old). The auditor is a person within section 144(2).
• Otherwise, examination by a qualified examiner (section 145(3)): gross income over £500,000 (new) or £250,000 (old); who counts is quoted from section 145(3) and (4).
• Otherwise, independent examination (section 145(1)), or an audit if the trustees choose one: gross income over £40,000 (new) or £25,000 (old).
• Otherwise, the Act requires no external scrutiny; a governing document or a funder may.
• Receipts and payments accounts (section 133): an option where gross income does not exceed £500,000 (new) or £250,000 (old); never for a charitable company.
• A charitable company gets no firm route on this page, only the company line and the gov.uk page quoted above.
• Boundary cases: gross income within 5% of a threshold in the applying set, or gross assets within 5% of the asset limb, add "close to a threshold: confirm with your examiner", and the result is not presented as settled.
• Over means exceeds: a figure exactly on a threshold is not over it. The sections themselves use the words exceeds and does not exceed.

How we check this rule

Every rule above is quoted character for character from one data file on this page, which names the source it came from, its address and the date we read it. Last checked against legislation 29 October 2026; statute version: Charities Act 2011 sections 133, 144 and 145 as amended by S.I. 2026/427, in force 30 September 2026, with the transitional rule in article 5(6). Nothing in quotation marks on this page is a paraphrase.

• S.I. 2026/427 as made: articles 1(1), 3 and 5(6).
• Charities Act 2011 section 133, section 144 and section 145, the consolidated text on legislation.gov.uk, read the same day. Section 133's page still carried the old sum, with the substitution listed as yet to be applied; sections 144 and 145 carried the new sums.
• gov.uk: Threshold changes at a glance, rules for charitable companies and rules for CIOs, each updated 16 September 2026.

Not worked out on this page, on purpose:

• Scotland and Northern Ireland: different regulators and different figures.
• Exempt and excepted charities, and charities with a principal regulator other than the Charity Commission.
• Group accounts and the group audit threshold (article 4 of the Order and the Charities Act 2011 (Group Accounts) Regulations 2015).
• Companies Act 2006 audit rules for charitable companies: this page gives no firm answer for a company.
• An audit the Charity Commission requires under its own powers, and anything a governing document or a funding agreement requires.
• How gross income and gross assets are measured: the figures are yours; the Charity Commission's pages set out what gross income includes.
• SORP 2026 tiers and the content of the accounts and the trustees' annual report.

If a rule changes or we find an error, we correct the page and record it here.