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.
