Upcoming reporting and examination changes
There are a number of changes coming into effect over the next few months, affecting different types of VCSE organisations. We’ve summarised the changes below, but for more detail, please view the linked documents.
Registered charities - New thresholds
| Requirement | Existing threshold | New threshold |
|---|---|---|
| Independent examination required | Income over £25,000 | Income over £40,000 |
| Examiner must be professionally qualified | Income over £250,000 | Income over £500,000 |
| Receipts-and-payments accounts permitted for a non-company charity | Income up to £250,000 | Income up to £500,000 |
| Statutory audit based on income alone | Income over £1 million | Income over £1.5 million |
| Asset-based audit test |
Income over £250,000 and assets over £3.26 million |
Income over £500,000 and assets over £5 million |
| Group accounts and group audit | Aggregate group income over £1 million | Aggregate group income over £1.5 million |
The new thresholds apply to accounting years ending on or after 30 September 2026. Different rules may apply to charitable companies, non-company charities and charity groups.
The charity registration threshold remains at £5,000; the Annual Return requirement stays at £10,000 and the Annual Report threshold continues to be £25,000 to maintain public transparency.
These new thresholds come into effect for financial years ending on or after 30 September 2026 (so if your current financial year ends on 31 March 2027, these new thresholds will apply).
SORP 2026
SORP 2026 applies to charities preparing accruals accounts for periods beginning on or after 1 January 2026.
Major changes include:
three reporting tiers (these tiers define what your organisation must report)
Tier 1: income up to £500,000
Tier 2: £500,000–£15 million
Tier 3: over £15 million
new accounting for income and leases
revised trustees’ annual report requirements, particularly reserves, future plans, impact and relevant environmental, social and governance matters
simplified requirements for social investments
revised treatment and explanation of provisions and contingencies
You can find webinars and guidance here: ICAEW New Charities SORP Guidance
Companies House filing changes - now April 2028
In June, Companies House announced that it would proceed with accounts reforms including:
Small and micro companies must file profit and loss accounts but can opt out of their publication.
All companies (including CICs) will need to file accounts via commercial software. You can check which software you can use here: Find software for filing company accounts - GOV.UK
If you intend to file accounts yourself (rather than using an accountant), Companies House have provided some guidance to make sure you’re ready: Using software to file your company's information - GOV.UK
To allow companies more time to make the changes, these will now come into effect from April 2028 (later than the planned April 2027).
We will provide further reminders and information through our News Bulletin.