Does my charity need an independent examination or a full audit?

In England and Wales, for financial years ending before 30 September 2026: charities with gross income below £25,000 need neither. Between £25,000 and £1 million an independent examination is required unless income also exceeds £250,000 and gross assets exceed £3.26 million, or its governing document requires an audit. Above £1 million a full audit is required. For financial years ending on or after 30 September 2026 those gates rise to £40,000, £1.5 million, and £500,000 with £5 million of gross assets. Scottish and Northern Irish charities have different thresholds.

Who can carry out an independent examination?

For charities with income under the qualified-examiner threshold (£250,000, rising to £500,000 for financial years ending on or after 30 September 2026), the examiner must be independent and have the relevant knowledge and experience but does not need a specific qualification. Above that threshold, the examiner must hold a qualification from a list specified by the Charity Commission, which includes members of ICAEW, ACCA, CIPFA and certain other bodies.

Independent Examination

Independent examination for charities below the audit threshold.

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.

Get in touch

£25k

Examination threshold (£40k for years ending on or after 30 Sep 2026)

10 months

Filing deadline after year end (Charity Commission)

SORP

Accounting standard all charity accounts must follow

The problem

The challenges trustees face.

Finding a suitably qualified examiner

The Charity Commission requires examiners to be independent of the charity and to have the relevant knowledge and experience. For charities with income over £250,000 (£500,000 for financial years ending on or after 30 September 2026), the examiner must hold a specific professional qualification. Many trustees do not know where to start.

Accounts prepared to the right standard

The examiner reviews accounts that must already comply with the Charities SORP. Accounts prepared on a simple receipts-and-payments basis may be acceptable for smaller charities but need to be correctly structured. Fund accounting, restricted funds and designated funds all need correct treatment.

Timing and trustee availability

Trustee boards often have limited accounting knowledge and volunteer time. Coordinating the accounts preparation, the examination and the Charity Commission filing within the 10-month deadline requires planning that many small charities find difficult.

Charity Commission reporting requirements

The annual return, trustees annual report and accounts must all be filed correctly. Errors in the return or missing information can trigger follow-up from the Commission. We ensure the filing is complete and accurate.

The work

How we help.

Prepare for the independent examination

We prepare your charity's accounts with the examination in mind, check they comply with the Charities SORP, and connect you with an independent examiner who can produce the examiner's report required for Charity Commission filing.

Accounts preparation support

Where accounts need correction or restructuring before examination, we advise trustees on what is needed and, if required, assist with preparation.

Charity Commission filing

We assist with the full annual return submission to the Charity Commission, including the trustees annual report, accounts and the online return questions.

FAQ

Common questions

Does my charity need an independent examination or a full audit?: In England and Wales, for financial years ending before 30 September 2026: charities with gross income below £25,000 need neither. Between £25,000 and £1 million an independent examination is required unless income also exceeds £250,000 and gross assets exceed £3.26 million, or its governing document requires an audit. Above £1 million a full audit is required. For financial years ending on or after 30 September 2026 those gates rise to £40,000, £1.5 million, and £500,000 with £5 million of gross assets. Scottish and Northern Irish charities have different thresholds.
Who can carry out an independent examination?: For charities with income under the qualified-examiner threshold (£250,000, rising to £500,000 for financial years ending on or after 30 September 2026), the examiner must be independent and have the relevant knowledge and experience but does not need a specific qualification. Above that threshold, the examiner must hold a qualification from a list specified by the Charity Commission, which includes members of ICAEW, ACCA, CIPFA and certain other bodies.

Speak to a charity accounts specialist.

Tell us about your charity, CIC or social enterprise and we will arrange a short introductory call. No obligation.

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