Changes in Charity Assurance: What Trustees Need to Know
27th April 2026
For charities and their Trustees, keeping pace with changing reporting requirements is essential for maintaining transparency and public trust. With major changes to charity financial thresholds for England & Wales expected to come into force from 1 October 2026, now is the ideal time for Trustees to prepare.
One of the most impactful changes is the rise in the independent examination requirement. From 2026, only charities with income over £40,000 will need external scrutiny, up from the long standing £25,000 threshold.
Larger organisations will also feel the benefit. The statutory audit threshold will increase from £1 million to £1.5 million, with the asset threshold rising from £3.26 million to £5 million where income exceeds £500,000. This means fewer charities will require a full audit, often the costliest form of scrutiny. This is hoped to free up charity resources without compromising oversight.
A further important development is the rise in the accruals accounting threshold. Non company charities will be able to use receipts and payments accounts up to £500,000 income, instead of the current £250,000 limit. This gives many mid sized charities a simpler option, particularly helpful for organisations with straightforward financials.
Despite these increases, trustees must still check their governing documents and funder agreements, as these may mandate audits or specific scrutiny regardless of income.
As always, choosing an accountant, independent examiner or auditor with robust charity sector expertise will help ensure compliance and provide valuable insights.
With the new rules applying to accounting periods ending on or after 1 January 2026, now is the time to review your expected income, assess your future scrutiny needs, and plan ahead.
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For more information or advice please contact your usual Whitings LLP contact or your local Whitings LLP office and we will be happy to help you.
Disclaimer - All information in this post was correct at time of writing.
