Cabinet Office announces new £1m charity audit threshold

After a lengthy consultation, the Cabinet Office has announced that the threshold over which charities in England & Wales have to audit their accounts will be increased to £1m annual income. The asset threshold for audit remains at assets worth £3.26m. The Cabinet Office has suggested that roughly 4,000 charities will now benefit from the savings associated with not undertaking a full audit.

How helpful this will be, however, may depend on your charity’s constitution as many grant funders will continue to require audited accounts and, if they do not also raise their threshold to mirror the new rules, some of these 4,000 charities may still need to have their accounts audited to satisfy grant funders.

For more information or to discuss your requirements contact one of our charity law solicitors today on 01895 207809 or email charities@ibblaw.co.uk.