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Stopfords

Scottish Charity Audit Threshold Is Changing

Date:
Category:
General

What’s New?

From 1 January 2026, the audit threshold for Scottish charities (including UK Charities with dual registrations) will increase from £500,000 to £1 million in gross annual income.

What This Means

  • Charities with income under £1 million will no longer need a full audit (unless required by their governing document or funders).
  • Independent examination will still be required for charities with income over £250,000.
  • This change applies to accounting periods starting on or after 1 January 2026.

Why It’s Changing

The Scottish Government is updating charity regulations to:

  • Reduce administrative burden
  • Align with the new Charities SORP (2025)
  • Reflect inflation and sector feedback

What You Should Do

  • Review your governing document: Some charities require audits regardless of income.
  • Plan ahead: If your year-end is 31 December 2025, the new threshold won’t apply until your 2026 accounts.
  • Talk to your accountant: They can help assess whether you’ll benefit from the change.

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