Limited company guide
When a charity needs an independent examination rather than an audit, what the examiner checks, who is eligible to act and what the trustees must provide.
Written and reviewed by Waqas Sagar Member of ICAEW, Fellow of ACCA, Fellow of AAT, a double graduate and entrepreneur at heart, helping startups grow and serving thousands of businesses nationwide with an excellent team. Published by LimitedCompany.Accountants, 12 London Road, Morden, London SM4 5BQ. Reviewed 12 September 2026 against 2026/27 UK rates and current Companies House and HMRC guidance.
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QuickBooks PartnerCertified ProAdvisor100+ yearsCombined team experienceFully insuredUp to £2m indemnityBroadly, a charity with gross income above £25,000 needs external scrutiny. Independent examination is available where income is £1m or less, provided assets do not exceed £3.26m with income over £250,000, in which case an audit is required.
When independent examination applies
What the examiner actually does
Who can act
What trustees should have ready
Broadly, a charity with gross income above £25,000 needs external scrutiny. Independent examination is available where income is £1m or less, provided assets do not exceed £3.26m with income over £250,000, in which case an audit is required.
The governing document or a funder can require an audit at a lower level, and trustees can choose one voluntarily. Charitable companies also have to consider the company audit thresholds.
An examination is a review, not an audit. The examiner checks that accounting records are kept properly, that the accounts agree to those records, that they comply with the applicable requirements including the SORP where accruals accounts are prepared, and considers whether anything material is inconsistent or unusual.
There is no opinion on truth and fairness. The report states whether any matter has come to the examiner's attention that gives cause for concern, and there are matters the examiner must report to the Commission if found.
The examiner must be independent of the charity's management and administration. Where income exceeds £250,000, they must be a member of a listed professional body, which includes ICAEW, ACCA and AAT.
A trustee or an employee cannot examine the charity's own accounts, and nor can a close relative of one.
Complete accounting records for the year, bank statements and reconciliations, a fund analysis separating restricted, unrestricted and any endowment, grant agreements, minutes of trustee meetings, and the draft trustees' annual report.
Time spent preparing the fund analysis is the single biggest factor in how quickly an examination completes.
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Frequently asked
Considerably, usually a fraction of the cost, because the scope is a review of records and compliance rather than substantive audit testing.
Independence is the test. A firm that prepares the accounts and has no involvement in the charity's management can often still examine them, but many trustees prefer the roles separated, and the position should be considered explicitly.
An audit becomes compulsory for that year. Plan for it in advance, because audit requires evidence gathered during the year, not reconstructed afterwards.
Keep bank statements, sales and platform reports, purchase invoices, payroll records, VAT workings, finance agreements and Companies House correspondence. We confirm the exact list at onboarding and identify gaps before a filing deadline becomes urgent.
The fee depends on transaction volume, record quality, VAT and payroll requirements, historic catch-up and the level of reporting needed. We agree a fixed scope and price before technical work starts, with published packages available on our fees page.
Yes. We request professional clearance, collect the prior records and authorities, check the next Companies House and HMRC deadlines, and give you one clear handover list. The process is normally completed remotely.
Yes. We work through secure cloud records, scheduled reviews and digital approvals, while keeping a named team available by phone, video call and email. Clients can also visit our Morden office by appointment.
We regularly work with Xero, QuickBooks, FreeAgent, Sage and connected sales or expense apps. The right setup depends on transaction volume, integrations and the reports you need, not simply the software brand.
The relevant calendar may include annual accounts, Corporation Tax payment and return dates, confirmation statements, VAT returns, payroll submissions and Self Assessment. We map the dates from your company year end and registrations.
No. This page explains general UK rules and common accounting treatment. Your facts, contracts and wider tax position must be reviewed before you rely on a conclusion.
Included approach
Check the current rules
Deadlines, thresholds and filing rules change. GOV.UK and Companies House publish the current statutory position; advice should then be applied to your company’s circumstances.
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