Where we’ve been

Since 2015, the audit thresholds for charities in England & Wales have been:

• Audit required if income exceeds £1 million, or
• Audit required if income exceeds £250,000 and gross assets exceed £3.26 million

Those figures have stayed completely unchanged for over a decade.  In real terms, that meant more charities drifting into audit simply because of inflation, not because they’d become more complex or risky.   If your charity falls below the audit threshold, an independent examination may be required instead - and that is naturally much simpler.

What’s changing

Following a government review, those thresholds are now being increased:

• Income audit threshold: £1 million → £1.5 million
• Asset-based audit trigger (where income exceeds £500k): £3.26 million → £5 million

These are legal changes, not accounting or SORP changes.

When it matters

This is the bit that often gets misunderstood.  The new thresholds apply to financial years starting on or after 1 October 2026.  So, for example:

• A charity with a 31 March year end won’t see any change until the year ending 31 March 2028.
• Accounts for 31 March 2027 are still firmly under the old rules.

There’s no early adoption and no choice about timing — it’s purely date-driven.

A final reality check

Even where a charity falls below the new thresholds:

• Trustees can still choose to have an audit
• Funders or governing documents may still require one

So this isn’t about audits disappearing — it’s about making the statutory requirement more proportionate.

Bottom line:
Audit thresholds have been stuck since 2015. They’re finally being updated — but most charities won’t feel the impact until 2027/28 at the earliest. 

If you’re unsure whether your charity requires an audit or independent examination, feel free to get in touch to discuss your situation.