Current charities reporting thresholds for audit or independent examination

Charity regulation is complex. Establishing whether a charity requires an audit or independent examination can be confusing, so this is worth another look at here.

Firstly, it is always worth a review of a charity’s governing document. This document may require an audit irrespective of any thresholds.

Secondly, thresholds are different depending on whether a charity is registered in England and Wales or Scotland.
In England and Wales the thresholds are as follows:

  1. If a charity has gross income of £25,000 or more, an independent examination is required by an independent person who the trustees consider to have the ability to competently carry out the review.
  2. If a charity has gross income greater than £250,000 but less than £1mn then the independent examination must be carried out by a member of an eligible accounting body such as ICAEW or ACCA or by Fellows of the Association of Charity Independent Examiners.
  3. If gross income for the year is greater than £1 million, or gross assets are more than £3.26 million and income of more than £250,000, then an audit is required.
  4. The total exemption threshold is gross income less than £25,000.

Please note the thresholds in Scotland are different to those noted above.

The thresholds are complicated and can cause confusion, especially when gross income requires detailed assessment.

The next step

Should you require any further information or assistance with the guidance noted above, please get in touch with Kay Flevill at, or your usual UHY adviser.

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