England and Wales double charity accruals-account threshold to £500,000

England and Wales have raised the income thresholds that determine how charities prepare and check their accounts, the Charity Commission said Wednesday. The changes apply to financial years ending on or after September 30.

The threshold for SORP-compliant accruals accounts doubles to income above £500,000 from £250,000. Independent examination becomes mandatory above £40,000, up from £25,000.

The audit line also moves. An audit is required when gross income exceeds £1.5 million, or when income exceeds £500,000 and gross assets exceed £5 million. The previous income threshold was £1 million.

Separately, SORP 2026 applies across the United Kingdom to financial years starting on or after January 1. It changes the treatment of some income and leases and adds transparency requirements for larger charities.