Changes for charities coming into force from November and changes to charity accounting and reporting from 2026

The Charity Commission has details of forthcoming changes for charities. Changes are

1. Part of the Charities Act 2022 (coming from 27th November)
2. Changes to charity reporting and accounting (coming from 2026)

Charities Act 2022 changes

From 27th November, changes come into force for charities as part of the Charities Act 2022. These changes are around ex gratia or moral payments (a payment made voluntarily and with no obligation). From November 27th, changes allow:

• trustees to delegate decision-making authority for moral payments to other people at the charity, for example a member of staff or a trustee sub-committee
• charities to make certain moral payments without Commission authority

The Charity Commission will provide specific guidance on this from 27th November 2025.

For more on this, and for details of earlier changes brought in by the Charities Act 2022, visit: www.gov.uk/guidance/charities-act-2022-guidance-for-charities

Changes to charity reporting and accounting

There are a number of changes to charity reporting requirements coming into effect designed to be proportionate to the size and type of charity. These are:

• For charities that prepare accruals accounts (changes come into effect for financial years starting on or after 1st January 2026). The Charities SORP 2026 has been recently updated and will come into effect from 1st January 2026. Changes include:
  • New accounting rules for income and lease arrangements
  • Three new tiers proportionate to a charity’s size
  • New requirements for the trustees annual report
• New thresholds for reporting and accounting. In general, the thresholds which dictate whether charities require independent examination, independent examination by a qualified Independent Examiner, audit etc. will be increasing. These changes are likely to come into effect from 30th September 2026.

For full details of these changes, visit: www.gov.uk/guidance/changes-to-charity-accounting-and-reporting