Research
UK Charity Scrutiny Cliff-Edge Monitor
How many charities are close to crossing a threshold that changes what they must file? A live count of England and Wales charities within 10% of each statutory scrutiny gate, compiled from Charity Commission open data. Updated 2026-07-20. The gates tracked here apply to financial years ending before 30 September 2026; they rise to £40,000, £500,000 and £1.5m for years ending on or after that date.
Charities approaching each threshold
Across all three scrutiny thresholds, 6,266 active charities have latest reported income within 10% below a gate that would trigger new compliance obligations. These are not theoretical future charities; they are organisations on the register today whose next financial year, or next grant, or next fundraising push, could take them across a threshold that changes what they must file and who can sign their accounts.
| Threshold | Cliff zone | Charities in cliff (below) | Just crossed (above, within 10%) |
|---|---|---|---|
| Independent examination gate (£25,000) | £22,500 to £25,000 | 3,472 | 2,401 |
| Accruals / qualified examiner gate (£250,000) | £225,000 to £250,000 | 1,874 | 1,468 |
| Audit gate (£1,000,000) | £900,000 to £1,000,000 | 920 | 465 |
Source: Charity Commission full-register extract (OGL v3.0), 2026-07-20. Active, main charities only. "Just crossed" = charities within 10% above the threshold who have recently become subject to the higher scrutiny requirement.
What each threshold triggers
Independent examination gate
Above £25,000 gross income, a charity must have its accounts examined by an independent examiner before filing with the Commission. The examiner does not need to be a qualified accountant at this level, but must be independent. Currently 3,472 charities sit in the £22,500 to £25,000 zone. For financial years ending on or after 30 September 2026 this gate rises to £40,000.
Accruals and qualified examiner gate
Above £250,000 gross income, two things change at once: the charity must switch from receipts and payments accounts to full accruals accounts, and the independent examiner must be a qualified accountant. This is often the most disruptive threshold for growing charities. Currently 1,874 charities sit in the £225,000 to £250,000 zone. For financial years ending on or after 30 September 2026 this gate rises to £500,000.
Statutory audit gate
Above £1m gross income (or if gross assets exceed £3.26m alongside income over £250,000), a charity needs a full statutory audit by a registered auditor. An audit is substantially more demanding and expensive than an independent examination. Currently 920 charities sit in the £900,000 to £1,000,000 zone. The true number approaching audit is higher because the asset test cannot be applied from the public register extract. For financial years ending on or after 30 September 2026 the audit gate rises to £1.5m income (asset trigger £5m alongside income over £500,000).
Not sure which band your charity is in? Use our independent examination vs audit checker.
Frequently asked questions
What is the scrutiny cliff edge?
The Charities Act 2011 sets income thresholds at which a charity's external scrutiny obligation changes. For financial years ending before 30 September 2026: below £25,000 gross income, a charity needs no external scrutiny. Above £25,000 it needs an independent examination. Above £250,000 it needs an independent examination by a qualified examiner and must prepare accruals accounts rather than receipts and payments accounts. Above £1,000,000 (or if gross assets exceed £3.26m alongside income over £250,000) it needs a statutory audit. For financial years ending on or after 30 September 2026 these gates rise to £40,000, £500,000 and £1.5m (asset trigger £5m). Each of these thresholds is a cliff edge: crossing one triggers a materially more demanding (and more expensive) compliance regime. Many charities sit just below these gates without realising how close they are.
How is the cliff-edge count calculated?
We take each active charity's latest reported gross income from the Charity Commission register and count those with income between £22,500 and £25,000 (the 10% window below the independent examination gate), between £225,000 and £250,000 (below the accruals gate), and between £900,000 and £1,000,000 (below the audit gate). We also count charities just above each threshold (within 10%) who have recently crossed and may still be planning their first examination or audit. The income figure used is latest_income from the charity table in the Charity Commission full-register extract.
What happens when a charity crosses £25,000?
Once a charity's gross income exceeds £25,000 in a financial year ending before 30 September 2026 (£40,000 for years ending on or after that date), it must have its accounts independently examined before they are filed with the Charity Commission. An independent examiner does not need to be a qualified accountant (unless the charity also exceeds the qualified-examiner threshold), but must be independent of the charity and its trustees, and must have the skills to carry out the examination. The examiner checks whether the accounts are consistent with the charity's records; this is not an audit. Charities often underestimate how much preparation this requires the first time, particularly if they have been operating on receipts and payments accounts.
What changes at £250,000?
At £250,000 gross income (£500,000 for financial years ending on or after 30 September 2026), two obligations change at once. First, the charity must prepare accruals accounts (a full income and expenditure account and balance sheet), rather than the simpler receipts and payments account. This typically requires more sophisticated bookkeeping and usually professional help. Second, the independent examiner must be a qualified accountant, defined by the Charity Commission as a member of one of the recognised accountancy bodies. Together these changes often represent a significant cost step for growing charities.
When is a full audit required?
For financial years ending before 30 September 2026, a statutory audit is required when a charity's gross income exceeds £1,000,000, or when gross income exceeds £250,000 and gross assets exceed £3,260,000. For financial years ending on or after 30 September 2026 the audit gates rise to £1,500,000 income, or £500,000 income with gross assets over £5,000,000. This page counts charities approaching the income threshold only; the asset test requires data not available in the public register extract, so the true number approaching audit is somewhat higher than shown. An audit must be carried out by a registered auditor (a firm or individual registered with a recognised supervisory body under the Companies Act 2006).
How are the scrutiny thresholds changing on 30 September 2026?
Following a DCMS consultation, the thresholds rise for financial years ending on or after 30 September 2026: independent examination is required above £40,000 gross income (previously £25,000), accruals accounts and a qualified examiner above £500,000 (previously £250,000), and a statutory audit above £1.5m income or £500,000 income with gross assets over £5m (previously £1m and £3.26m). Financial years ending before 30 September 2026 keep the old thresholds. The counts on this page track the pre-change gates, which remain the ones charities filing 2025/26 accounts must meet.
Methodology and sources
'In cliff' = active charities with latest reported income between 10% below a threshold and the threshold itself. 'Just crossed' = active charities within 10% above the threshold. Income is latest_income; charities without a reported income are excluded. Thresholds: independent examination £25,000; accruals/qualified examiner £250,000; statutory audit £1,000,000 (income test; asset test not available in this extract). Main charities only (linked charities excluded). These thresholds apply to financial years ending before 30 September 2026. For financial years ending on or after 30 September 2026 the gates rise to £40,000 (independent examination), £500,000 (accruals/qualified examiner) and £1,500,000 (audit income test; asset trigger £5,000,000), per https://www.gov.uk/guidance/changes-to-charity-accounting-and-reporting.
- Charity Commission full register extract (OGL v3.0) (Charity Commission for England and Wales, Open Government Licence v3.0)
Download the cliff-edge data as CSV (free to reuse with attribution to Trustee Tax).
Related: UK Small Charity Finance Index | UK Charity Survival and Longevity Index
Is your charity approaching a threshold?
6,266 charities are within 10% of a compliance gate that changes what they must file. If your income is approaching £25,000, £250,000, or £1m (£40,000, £500,000, or £1.5m for financial years ending on or after 30 September 2026), we can tell you what to prepare and when.