Charity reporting and accounting

The following Private Client practice note provides comprehensive and up to date legal information covering:

  • Charity reporting and accounting
  • Registered non-company charities where gross income does not exceed £25,000 in the relevant financial year
  • Registered non-company charities with a gross income of over £25,000 but not exceeding £250,000 in the relevant financial year
  • Registered non-company charities with a gross income of over £250,000 but not exceeding £500,000 in the relevant financial year, and total assets not exceeding £3.26m
  • Registered non-company charities with a gross income exceeding £500,000 in the relevant financial year, or whose gross assets exceed £3.26m and gross income exceeds £250,000
  • Registered non-company charities which have either charitable or non-charitable subsidiaries must prepare group accounts where the income of the group, after eliminating intra group transactions and consolidation adjustments, exceeds £500,000
  • Company charities
  • Charities excepted from registration
  • Charities exempt from registration
  • Accounts

Charity reporting and accounting

FORTHCOMING CHANGE: The Charities Act 2022 (CA 2022) received Royal Assent on 24 February 2022 and will be implemented on a staggered basis between now and Autumn 2023. CA 2022 will implement the majority of the recommendations from the 2017 Law Commission report, ‘Technical Issues in Charity Law’. For a summary of the recommendations that have been accepted, see News Analysis: Government response to Law Commission report ‘Technical Issues in Charity Law’. For further guidance on the implementation of CA 2022, see News Analysis: Charities Act 2022—what do we know so far?.

Of particular relevance to this Practice Note, the government accepted all proposals in relation to financial thresholds, specifically the Law Commission’s recommendation that the financial thresholds in the Charities Act 2011 (CA 2011) should be reviewed every ten years with a view to increasing them, by secondary legislation, in line with inflation. Charities’ registration, accounting and reporting requirements vary according to financial thresholds such as a charity’s income. By reviewing these thresholds regularly to reflect inflation, the government hopes to prevent an increasing number of smaller charities becoming subject to stricter requirements, or acquiring powers, which are not appropriate to their size. The government agreed with the Law

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