Every registered charity in England and Wales must report its income and spending to the Charity Commission each year, and a full annual return is required where gross income is over £10,000 or the charity is a CIO. The return is due within 10 months of the financial year end, and charities with income over £25,000 (and all CIOs) must upload their trustees’ annual report, accounts and any examiner’s or auditor’s report with it.

Which charities have to file an annual return?

Section 169 of the Charities Act 2011 requires every registered charity to prepare an annual return for each financial year in the form prescribed by the Commission. Section 169(2) removes the requirement for any year in which gross income does not exceed £10,000, but that exemption does not apply to a CIO. Even below £10,000, gov.uk guidance says a charity must still use the online service to report its total income and expenditure, so the register shows up to date figures.

The return is a Charity Commission filing. It is separate from the charity’s accounts and from any tax return sent to HMRC, and charitable companies still have their own filing obligations at Companies House. The duty applies only to registered charities, so exempt charities and unregistered excepted charities do not file one. The current question set is prescribed by the Charities (Annual Return) Regulations 2024, which apply to financial years ending on or after 1 January 2025.

When is it due?

Section 169(3) links the deadline to the deadline for sending the trustees’ annual report under section 163(1): 10 months from the end of the financial year. A charity with a 31 December year end must therefore file by 31 October of the following year. Section 163(1)(b) allows the Commission to permit a longer period for a special reason, but this is not automatic.

Two practical rules from the guidance often catch charities out. Any outstanding returns from earlier years must be submitted before the latest one can be filed. Each person filing needs their own My Charity Commission Account, set up with an individual email address and password.

A charitable company must also deliver its accounts to Companies House within nine months of its year end under section 442 of the Companies Act 2006, which is earlier than the Commission deadline. See Companies House accounts deadlines and penalties.

What has to be submitted at each income level?

Charity and gross income What to submit
Company or unincorporated charity, £10,000 or less Income and spending figures only
Company or unincorporated charity, over £10,000 up to £25,000 Annual return questions; no other documents
Company or unincorporated charity, over £25,000 Annual return questions, trustees’ annual report, accounts, independent examiner’s or auditor’s report where required, and a declaration that there are no unreported serious incidents
CIO, any income Annual return questions, trustees’ annual report, accounts and any examiner’s or auditor’s report; the serious incident declaration applies over £25,000

These filing bands are statutory. Section 163 requires the annual report to be sent where income exceeds £25,000, and for a CIO whatever its income. Section 164 requires the accounts and the auditor’s or examiner’s report to be attached to it, with a charitable company attaching its Companies Act accounts instead.

The filing bands were not changed by the Charities Acts 1992 and 2011 (Substitution of Sums) Order 2026. That order did raise the thresholds for the accounts themselves for financial years ending on or after 30 September 2026: independent examination is now needed above £40,000 (previously £25,000), and receipts and payments accounts are available up to £500,000 (previously £250,000). A charity with income of £35,000 for a year ending 31 December 2026 therefore still uploads its report and accounts, but may no longer need an examiner’s report unless its governing document requires one.

What questions does the annual return ask?

The Commission’s question guide for 2025 and 2026 returns sets out the questions, which vary with income and type of charity. The main sections are:

  • Financial period, income and spending. Confirmation of the period, which for unincorporated charities and CIOs can be 6 to 18 months, and gross income and spending.
  • Income. Number and value of contracts and grants from central government (including the NHS) and local authorities; a breakdown of income into donations and legacies, charitable activities, other trading and investments for charities with income of £500,000 or less where grants and contracts are under 70% of income; and, for income over £100,000, the largest single donations from a corporate donor, an individual and a related party.
  • Spending. Whether grant making is the main activity, grants to individuals, charities and other bodies, and whether any recipients are related parties. Whether trustees were paid, and for what.
  • Overseas activity. Income from, activities in and spending outside the United Kingdom.
  • Structure and property. Trading subsidiaries, how many trustees are also subsidiary directors, and (for unincorporated charities) property held by holding or custodian trustees.
  • People. Numbers of permanent, fixed term and self employed workers, total payroll, the number of employees with benefits of £60,000 or more in salary bands, the highest paid employee’s benefits excluding employer pension contributions, and an estimate of volunteers.
  • Governance and safeguarding. Which policies were in place at the year end (the Commission expects most charities to have financial controls, reserves, risk management, trustee expenses, conflicts of interest and serious incident reporting policies), whether services were provided to children or adults at risk, and whether the required DBS checks were obtained.
  • Serious incidents. For income over £25,000, confirmation that all serious incidents the charity became aware of in the period have been reported.

How is gross income worked out for the return?

The question guide defines it by accounting basis. For receipts and payments accounts, start with total receipts, deduct endowment received, add transfers from endowment to income funds, and deduct loans received and proceeds from selling fixed assets and investments. For accruals accounts prepared under the Charities SORP, start with total income in the statement of financial activities, deduct endowment received and add transfers from endowment. Revaluation and investment gains are excluded in both cases. Spending is total payments or total expenditure in the statement of financial activities.

Getting this figure right is important because it decides which band applies and appears on the public register.

What happens if the return is late or wrong?

Section 173 makes it an offence if the annual return, or the annual report and accounts, are not sent by the deadline. The offence is committed by every person who was a charity trustee immediately before the deadline, with a defence for a trustee who took all reasonable steps to secure compliance. The penalty on summary conviction is a fine up to level 4 on the standard scale, plus a daily default fine of up to 10% of level 4 for continued failure while the person remains a trustee. Late filing is also visible on the charity’s public register entry, and trustees should treat it as part of their duty to keep the charity accountable.

Only the charity can complete the return; the Commission cannot amend it. Changing answers requires a written request for a full reset and resubmission, and the guidance warns that the new submission date then appears on the register, so a resubmission after the deadline will show as late. Replacement accounts can be uploaded without a reset.

How does this work in practice?

Illustration only. A charitable trust has a 31 March 2026 year end and prepares receipts and payments accounts. Total receipts are £33,000, including a £5,000 bank loan and £2,000 from selling an old minibus. Gross income for the return is £26,000, so it is over £25,000. The deadline is 31 January 2027. Because the year ended before 30 September 2026, the old £25,000 examination threshold applies, so the trustees arrange an independent examination. They then file the return, uploading the trustees’ annual report, the accounts and the examiner’s report, and confirm that no serious incidents are unreported.

What mistakes come up most often?

  • Entering total receipts including loans or asset sales, which overstates gross income and can push the charity into the wrong band.
  • Assuming a CIO with small income is exempt; it must always file the full return with its report and accounts.
  • Forgetting that older outstanding returns block the current one.
  • Confusing the new £40,000 examination threshold with the unchanged £25,000 document filing threshold.
  • Filing a charitable company’s accounts at Companies House but missing the Commission return, or the reverse.
  • Ticking the serious incident declaration without checking that every incident has actually been reported.

Company directors can protect the business against the cost of an HMRC check with tax investigation insurance, which pays up to £100,000 of accountant’s fees with Solar Protect. Read how our cover works or get a quote.

Related Accountapedia entries

Sources

Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 8 October 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.