Independent examination · Trustee guide
Does my charity need an independent examination? The 2026 thresholds
For charities in England and Wales, the answer depends on the financial year end, gross income, gross assets and any separate audit requirement. There is a significant change on 30 September 2026. Use the date the charity's financial year ends, not the date its accountant starts work or the accounts are filed.
Select the correct set of thresholds
The enacted Order preserves the previous rules for years ending before 30 September 2026. SI 2026/427, article 5(6)
| Test | Year ends before 30 September 2026 | Year ends on/after 30 September 2026 |
|---|---|---|
| Statutory external scrutiny normally required | Gross income over £25,000 | Gross income over £40,000 |
| Examiner must meet specified professional qualification requirements | Gross income over £250,000 | Gross income over £500,000 |
| Audit required by income | Gross income over £1 million | Gross income over £1.5 million |
| Alternative audit trigger: both conditions apply | Gross income over £250,000 and gross assets over £3.26 million | Gross income over £500,000 and gross assets over £5 million |
Gross assets are measured before deducting liabilities. The wording “over” matters: reaching a figure exactly does not satisfy that particular “over” test. Charity Commission: current accounting and scrutiny requirements, 2026 changes
Apply the dates to your circumstances
Consider a charity with gross income of £35,000, no applicable audit requirement and otherwise straightforward circumstances. For a 31 March 2026 year end, its income exceeds the statutory scrutiny threshold. For a 31 December 2026 year end, the same income is below the new threshold.
A charity with £600,000 income and £6 million gross assets for a December 2026 year end exceeds both limbs of the new assets-based audit test. Being below £1.5 million income does not by itself make examination available. The income limb of this test follows the accounts threshold in section 133, which the Order raises to £500,000. Charities Act 2011, section 144
Check obligations outside the figures
A governing document, funder or regulator may require an audit. Charitable companies also need their company-law position checked. Charity Commission: trustee guidance, CC31
Use this table to prepare an enquiry, rather than treating it as an automatic legal determination. Subsidiaries, connected reporting requirements or an unusual accounting period may require further examination of the facts. Share those circumstances early.
Keep filing duties separate
Every CIO must file its annual return, trustees' report and accounts regardless of income. Other registered charities with income over £25,000 must file accounts and their report. A charity can therefore have a filing obligation even when examination is not required under the new income threshold. Prepare a charity annual return
Prepare a focused eligibility enquiry
Provide your charity number, legal structure, exact year end, gross income, gross assets and details of any audit clause. Identify all relevant charity registrations. Request an initial eligibility review if you need the position checked. For accounts close to a threshold, confirm the figures before trustees commit to a particular reporting timetable or engagement.
Apply this guidance to the right facts
This is general information, not advice or a completed eligibility assessment. Scotland and Northern Ireland have separate requirements. Check the relevant law, regulator, governing document, funding terms and accounting period before making a decision.
Any engagement and its scope must be agreed separately.