Charity accounting services.

In England and Wales, charities with gross income between £25,000 and £1 million normally have their accounts independently examined rather than audited. There is a second audit trigger to check: an audit is also mandatory once gross income exceeds £250,000 and gross assets exceed £3.26 million, so a charity inside that income band can still need an audit. For financial years ending on or after 30 September 2026 the same structure applies on higher figures: £40,000 and £1.5 million, with the combined trigger at £500,000 of income and £5 million of gross assets. The examination provides trustees and the Charity Commission with assurance that the accounts are presented fairly and comply with the Charities SORP.

Charity accounts must be prepared in accordance with the Charities Statement of Recommended Practice (SORP). The SORP requires specific presentation of restricted and unrestricted funds, a trustees annual report and a statement of financial activities. Getting this right matters: the Charity Commission publishes your accounts and they are publicly searchable.

Charity bookkeeping is not the same as commercial bookkeeping. Restricted funds must be tracked separately, grants allocated correctly and management accounts presented in a format trustees can actually use. Getting the underlying records right makes accounts preparation, independent examination and funder reporting straightforward.

Gift Aid allows charities to reclaim 25p for every pound donated by UK taxpayers, at no cost to the donor. The Gift Aid Small Donations Scheme (GASDS) extends similar benefits to small cash and contactless donations where no declaration is held. Together they are among the most valuable sources of additional income for eligible charities, yet many claim less than they are entitled to.

Charity VAT is genuinely complex. Charities can access zero-rating on certain goods and services, but partial exemption rules apply where they have both taxable and exempt activities. Many charities pay more VAT than they need to, or fail to reclaim what they are entitled to, because the rules require specific analysis of their income mix.