New Charity Accounts Thresholds: What Changes for Your Church

The new limits start with this year’s accounts

The Charity Commission has raised the income limits that decide how a charity’s accounts are checked and prepared. They apply to financial years ending on or after 30 September 2026, in England and Wales.

If your church’s year ends on 31 December 2026, the new limits apply to that year’s accounts.

When your accounts need checking

If your church’s income is £40,000 or less, its accounts don’t need an independent examination. The limit used to be £25,000.

Above £40,000, an independent examiner needs to look at your accounts. Above £500,000, that examiner must be professionally qualified. A full audit is needed above £1.5 million of income, or above £500,000 of income if you also have £5 million or more of assets.

Simpler accounts for more churches

A church that isn’t a charitable company can prepare receipts and payments accounts if its income is up to £500,000. That limit was £250,000. These accounts show money in and money out, rather than the fuller accruals format.

If you do prepare accruals accounts, the 2026 Charities SORP applies to financial periods starting on or after 1 January 2026.

The annual return hasn’t changed

Registered charities with income over £10,000 still file an annual return, within 10 months of the end of their financial year. Every CIO files one, whatever its income.

If your income is over £25,000, the annual return asks you to confirm that all serious incidents have been reported to the Commission. That includes significant data breaches.

Excepted churches are still charities

Many churches in England and Wales with income under £100,000 are excepted from registering with the Charity Commission until 31 March 2031. They’re still charities, and the Commission can still act on concerns about them.

Being excepted doesn’t stop you claiming Gift Aid. You register with HMRC for tax purposes separately.

Keep your records for six years

Charity law says accounting records must be kept for at least 6 years from the end of the financial year they cover. Gift Aid records follow the same 6-year rule, so it makes sense to keep them together.