Accounts your trusteesand funders can rely on.
Charities answer to trustees, funders and the Charity Commission at once. We prepare SORP-compliant accounts, carry out independent examinations and keep restricted funds and Gift Aid in order.
What makes your finances different.
Funds are not interchangeable
Restricted grants, designated reserves and unrestricted income must be tracked separately and reported separately. Spending a restricted grant on the wrong thing is a breach of trust.
Two regulators, different rules
Charitable companies file with both Companies House and the Charity Commission, under the Charities SORP rather than ordinary accounting standards, with thresholds that decide whether an examination or audit is needed.
Gift Aid is money left on the table
Many small charities under-claim Gift Aid, or claim it on ineligible donations. The Small Donations Scheme adds up to £2,000 a year on cash and contactless gifts.
Trading can be taxable
Primary purpose trading is exempt, but a charity shop, cafe or consultancy arm may need a trading subsidiary to avoid Corporation Tax and protect the charity's assets.
What we do for you.
- Prepare receipts and payments or accruals accounts under the Charities SORP (FRS 102)
- Carry out independent examinations for charities below the audit threshold
- Prepare and submit Gift Aid claims, including the Gift Aid Small Donations Scheme
- File the Charity Commission annual return and Companies House accounts
- Set up fund accounting in Xero or QuickBooks with restricted and unrestricted tracking
- Produce management reports for trustees and funder reports for grants
- Advise on trading subsidiaries, VAT reliefs and partial exemption
- Run payroll for charity staff with pension auto-enrolment
The tax rules that matter here.
- Independent examination and audit thresholds
- For financial years ending on or after 30 September 2026, charities with gross income over £40,000 need an independent examination, and over £500,000 the examiner must be professionally qualified. An audit is required once income exceeds £1.5 million or assets exceed £5 million. Earlier year ends use the old thresholds of £25,000, £250,000 and £1 million.
- Gift Aid
- Charities reclaim 25p for every £1 donated by a UK taxpayer who has made a declaration. The Small Donations Scheme allows a top-up on cash and contactless donations of £30 or less, up to £8,000 of donations a year, without declarations.
- Trading and Corporation Tax
- Primary purpose trading and trading by beneficiaries is exempt. Other trading is exempt only within the small trading limit, which is 25% of income up to a maximum of £80,000. Beyond that a trading subsidiary that gifts its profits to the charity is the usual structure.
- VAT reliefs
- Charities can buy certain goods and services at zero rate, including advertising, some medical equipment and construction of buildings used for charitable purposes. Business rates relief of 80% is mandatory for premises used for charitable purposes, with a further 20% at the council's discretion.
- Annual return deadlines
- The Charity Commission annual return, trustees' annual report and accounts are due within 10 months of the financial year end. Charitable companies also file accounts at Companies House within 9 months.
Rules and rates are those in force for 2026/27 at the time of writing. Check your own position before acting.
Run your own numbers first.
- VAT calculator
Add VAT to a net price, or strip it out of a gross figure.
- Employer NI calculator
Employer's National Insurance and the true cost of a hire.
Worth asking.
For financial years ending on or after 30 September 2026, an independent examination is required once gross income exceeds £40,000, and an audit once income exceeds £1.5 million or assets exceed £5 million. Your governing document or a funder may require an audit at a lower level. We carry out independent examinations and can prepare the accounts for an auditor where one is needed.
The Statement of Recommended Practice that sets out how charities present their accounts under FRS 102, including the statement of financial activities, fund accounting and the trustees' annual report. Charities with income over £500,000 (£250,000 for year ends before 30 September 2026) must use accruals accounts under the SORP; smaller unincorporated charities may use receipts and payments.
Register with HMRC for Gift Aid, collect declarations from donors confirming they pay enough UK tax, and submit claims online with the donor schedule. Claims can go back four years. We prepare and submit claims and check eligibility, including the Small Donations Scheme for cash and contactless gifts.
Not on income used for charitable purposes, including donations, grants, investment income and primary purpose trading. Non-primary purpose trading above the small trading exemption is taxable, which is why many charities run a trading subsidiary that donates its profits under Gift Aid.
Yes. We use tracking categories for restricted, designated and unrestricted funds and for individual grants, so trustees can see fund balances at any time and funder reports come straight from the ledger.
It depends on income, the number of funds and whether an independent examination is needed. We quote a fixed annual fee for accounts and examination, with bookkeeping, payroll and Gift Aid either included or priced separately, and we set it out in writing for the trustees.
The services involved
- Annual Accounts & Corporation TaxYear-end accounts and company tax work within the agreed engagement.
- Bookkeeping & Cloud AccountingRegular support with records, reconciliation and keeping the books organised.
- Payroll & PensionsPayroll processing and related workplace pension administration.
- Outsourced Accounting & Finance DepartmentYour whole finance function run from our office: bookkeeping, invoicing, payments, payroll and reporting.
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