All charities urged to check new rules for accounting for 2026

The Charity Commission for England and Wales is urging all charity trustees and professional advisers to read its updated guidance due to changes that apply from this year.

Research for the regulator indicates financial transparency underpins public trust and confidence in the £100 billion charities in England and Wales expend delivering impact, so it is vital registered charities continue to submit accurate information on time.

As charities have different accounting requirements based on their legal structure, there is now one guide for each of the three main structure types: a trust or an unincorporated association; a charitable company; a charitable incorporated organisation (CIO).

The guidance has also been updated to reflect two main changes. Firstly, to the Charities Statement of Recommended Practice: Accounting and Reporting by Charities (‘the SORP’); secondly to the income thresholds in charity law at which charities must follow the SORP and have their accounts examined or audited.

The new version of the SORP applies to charities across the UK for financial years starting on or after 1 January 2026 which includes new requirements for recognising and reporting on certain types of income and lease arrangements, and new expectations for increased transparency from big income charities.

Crucially, for charities in England and Wales, for financial years ending on or after 30 September 2026 the government has raised the income thresholds at which charities must prepare SORP-compliant accruals accounts and / or have their accounts examined or audited. The new income thresholds are:

Charity Commission Senior Trustee Guidance Manager, Sue Smith, said: