Charity audit thresholds increasing from September 2026: What trustees need to know

On 31 October 2025 the Department for Culture Media and Sport (DCMS) announced changes to accounting thresholds for charities in England and Wales.

These changes aim to reduce costs and administrative effort for smaller charities. In May 2026, DCMS confirmed that these changes will come into effect on 30 September 2026 and will apply to financial years ending on or after 30 September 2026. 

The gross annual income threshold has been increased by 50% from £1 million to £1.5 million.  The government have reported that approximately 2,000 charities will now fall out of the requirement for an audit, reducing their administrative burden and decreasing their costs. 

 The asset threshold for an audit has also been increased from gross income over £250k AND assets of over £3.26 million to income over £500k AND assets of £5 million.  With the new SORP requirements for lease accounting (bringing these onto the balance sheet) this is a welcome increase too. 

 The audit threshold for Scottish charities currently applies to those with gross income of £500,000 or more but it is expected that this will rise to £1,000,000 in 2026. 

Several other thresholds will also be adjusted with effect from 30 September 2026:  

• Donation refunds – the threshold above which donors can request refunds in specific circumstances rises from £100 to £150. 
• Fundraising remuneration – thresholds for professional fundraisers and lower-paid collectors will increase from £10/day to £15/day and from £1,000/year to £1,500/year. 
• Charity Commission jurisdiction – the income limit for the Commission’s concurrent jurisdiction with the High Court to make certain orders increased from £500 to £1,000. 

Areas where there have not been any changes are as follows, to maintain public transparency:

• Charity registration threshold remains at £5,000;  
• Annual Return requirement remains at £10,000; 
• Annual Report requirement at £25,000.

As charities continue to navigate increasing regulatory requirements and stakeholder expectations, an independent examination can provide valuable assurance, transparency and confidence. Our experienced charities team works closely with trustees and management teams to deliver a robust, efficient and proportionate independent examination service, tailored to your organisation’s needs.

To find out how we can support your charity and help you meet your reporting obligations, visit our Charities and Not for Profit services page.