Charity audit thresholds – change to income levels
The government have published the results of their consultation on raising the audit thresholds for charities.
As a reminder charity accounts currently have to be audited where the following apply:
- An annual income from all sources of more than £500,000; or
- Assets worth more than £3.26 million and an income of more than £250,000.
The thresholds will become:
- An income of more than £1 million; or
- Assets worth more than £3.26 million and an income of more than £250,000 (no change).
The asset threshold could not be increased so easily as the income threshold but this may be revisited at some point in the future.
The legislation will also increase the audit income limits for charity groups to £1m.
The timing has also been clarified. The legislation should be in place to allow charities with 31 March 2015 year ends to take advantage of the change in limits.
Charities that are below the new limits and decide not to have an audit will need to have an Independent Examination undertaken instead.
For information and advice on how this may affect your charity, please contact Elizabeth Irvine.