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Changes to charity audit thresholds came into force on 31 March 2015
23rd April 2015
A number of changes to charity audit thresholds, including an increase in the basic threshold from £500,000 to £1m, come into force today.
The increase in the basic threshold is one of the major changes coming into force and means that charities under the new, £1m threshold can have their accounts looked at by independent examiners as opposed to formally being audited.
The changes remove the requirement to have accounts audited from around 4,000 charities, and the Charity Commission estimates it will save the sector around £8.7m a year.
Other changes to charity audit thresholds include an increase to both group income and preparation thresholds for parent and group accounts from £500,000 to £1m. The accounting pool of independent examiners will also be expanded.
These planned changes were announced in February, following a seven-week consultation process between the government and various sector bodies. They followed on from proposals originally put forward by Lord Hodgson of Astley Abbotts in his 2012 review of the Charities Act 2006.
Last week the Charity Commission published guidance on the issue, which states that the changes are “aimed at reducing the regulatory burden for charities”.
Civil Society – 31 March 2015
- Charity registration
- Governance and constitutional issues
- Trustees' duties and responsibilities
- Mergers and joint working
- Commercial contracts
- Company law and company secretarial
- Regulations and compliance
- Strategy and sustainability