Timing of charity financial threshold changes in England and Wales confirmed

For charities in England and Wales, new financial thresholds will apply to periods ending on or after 30 September 2026.

About the threshold increases

The higher thresholds are meant to reduce the regulatory burden on charities while keeping things transparent. We, along with the charity sector and the accountancy profession, welcome these changes. 

Earlier this year we set out details on the key financial threshold increases in our article Update of charity financial threshold changes in England and Wales, but at that time, we were awaiting confirmation that these would apply to periods ending on or after 30 September 2026. 

Secondary legislation 

Secondary legislation has now been laid before the UK parliament implementing the threshold increases announced by the Department for Culture, Media and Sport (DCMS) on 31 October last year. 

Cross border issues

Cross border charities – for example, those based in England and Wales but registered in Scotland with OSCR, must still follow the Charities Accounts (Scotland) Regulations 2006. This includes the rules on how accounts are prepared and checked. 

Financial thresholds under Scottish charity law are lower and will continue to be lower than financial thresholds under English charity law and the Companies Act 2006. 

While fewer financial thresholds apply to charities registered with OSCR, those thresholds remain unchanged with the exception of the charity audit threshold and the threshold for the preparation of consolidated (group) accounts, which have both increased for accounting periods beginning on or after 1 January 2026. 

The audit threshold for gross income has increased to gross income of £1 million or more a year, up from £500,000. There’s no change to the assets’ criterion. 

Therefore, for accounting periods beginning on or after 1 January 2026, a Scottish charity, including a cross-border charity, will require an audit if any of the following apply: 

• It has gross income of £1 million or more, or 
• the aggregate value of its assets (before deduction of liabilities) at the end of the financial year exceeds £3,260,000; or 
• it is required to do so by the constitution of the charity, any other enactment, or on the instruction of its trustees (for example, due to a request from a funder). 

The group accounts threshold has increased from gross income of £500,000 or more (after consolidation adjustments) to gross income of £1 million or and therefore continues to align with the gross income criterion of the audit threshold. 

The increase in these Scottish charity financial thresholds coincides with the implementation date for the revised edition of FRS 102 and the Charities SORP 2026.