Accountants across the UK got four big regulatory announcements this week. Charity accounting thresholds increased dramatically. FRC confirmed 2026 consultation windows. ICAEW published 2030 strategy. And Making Tax Digital deadlines are coming ever closer for sole traders and landlords.
Here are the details.
Charity Accounting: Higher Thresholds from September 2026
The Charity Commission announced significant threshold increases taking effect on 30 September 2026.
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Independent Examination Requirement
Rises from £25,000 to £40,000 income. Thousands of smaller charities exist with mandatory examination requirements.
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Qualified Examiner Requirement
Increases from £250,000 to £500,000. Mid-sized charities can use non-qualified examiners, reducing costs substantially.
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Audit Requirement
Jumps from £1,000,000 to £1,500,000 income (or assets from £3,260,000 to £5,000,000). Major relief for charities just above the previous threshold.
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Receipts & Payments Accounts
Now available for charities under £500,000 income (previously £250,000). Simpler accounting for more organisations.
The changes aim to reduce administrative burden while maintaining appropriate oversight. Practices with charity clients should review client rosters now. Identify which charities move between categories. Plan transition communications before September.
FRC Confirms 2026 Consultation Windows
The Financial Reporting Council set a consultation schedule: March, June, September and December. Predictable timing helps practices allocate resources for consultation responses.
Two active consultations require immediate attention:
- The Audit Enforcement Procedure consultation closes on 9 January, proposing explicit public interest considerations, graduated interventions, and faster case completion
- The Draft Plan and Budget 2026-27 consultation closes 6 February with a £74.4m budget representing a 2.9% increase and flat headcount
ICAEW Regulation Strategy Through 2030
The ICAEW Regulatory Board published a strategic framework with five pillars: public interest, improving regulation, regulating well, our people, and continuous improvement.
The strategy includes:
- enhanced disciplinary frameworks with periodic reviews of Bye-laws and Sanctions Guidance,
- data-driven member support through new digital communication channels,
- internal quality reviews with prompt implementation of oversight recommendations,
- AI and technology leverage for operational efficiency, and
- proactive engagement with government departments and oversight regulators
The framework positions ICAEW as an improvement regulator helping members maintain standards while ensuring accountability when they fall short.
Making Tax Digital: April 2026 Deadline Approaching
Sole traders and landlords with income over £50,000 must join MTD for Income Tax Self Assessment from April 2026. Self-employed individuals and landlords meeting the threshold all enter scope.
Here’s what’s required:
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Digital record keeping
Maintain records using MTD-compatible software
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Quarterly updates
Submit to HMRC within one month of each quarter end
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End of Period Statement
File after tax year end
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Final declaration
Submit by 31 January deadline
The threshold drops to £30,000 in April 2027, bringing more clients into scope.
Plan Ahead
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9 January 2026
FRC Audit Enforcement Procedure consultation closes.
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6 February 2026
FRC Draft Plan and Budget 2026-27 consultation closes.
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April 2026
MTD for Income Tax begins for businesses over £50,000.
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30 September 2026
New charity accounting thresholds take effect.
Review your charity client portfolio now. Identify threshold changes. Audit client lists for MTD requirements. Begin software onboarding immediately.
