If you are a UK-registered charity, depending on your income or charity structure, you may need to file a charity annual return.
You must file an annual return to the Charity Commission if your charity’s income is more than £10,000 or you are a CIO (Charitable Incorporated Organisation).
The charity annual return must be submitted within 10 months of the end of your financial year. For example, a charity with a year-end of 31 March 2024 must submit its annual return by 31 January 2025.
Depending on your charitable organisation’s income, charity type and what your charity does will impact the information you will be asked for.
We look at what you need to prepare your charity annual return.
What information do I need?
You need a copy of your completed financial year-end accounts and password access to the My Charity Commission account.
You must ensure that all information held by the Charity Commission is correct and up to date before starting the annual return process. This includes trustee details and contact details. This can be updated through the My Charity Commission account.
The types of questions you may be asked about include:
- Financial information such as income, spending, assets and liabilities (depending on the size of the charity)
- Income or contracts from central government or local authorities
- Income from or work done outside of the UK including details of which jurisdictions
- Information on fundraising activities
- Information on grant-making activities
- Information on any trading subsidiaries
- Information on payments to trustees
- Staff salary banding and benefits
- Details of the number of volunteers
- Information about financial controls
What charitable companies and unincorporated organisations must submit
If your charity has an income under £10,000, you only need to report the income and spending.
Charities with an income between £10,00 and £25,000 must answer questions about their charity in an annual return. No other documents are required.
Charities with an income over £25,000 must answer questions about their charity in an annual return and will need to declare that there are no serious incidents that need to be declared. Accounts need to be checked externally and provide copies of the trustee’s annual report, accounts and independent examiner’s report.
A full audit is required if there is an income over £1 million, gross assets over £3.26 million and income over £250,000.
The trustees’ reports and accounts should be prepared first, and they can be uploaded at the time of completing the annual return.
Remember that there is also a requirement to submit the full charity accounts to Companies House for charitable companies and that this deadline is 9 months after the year-end. For example, a charitable company with a 31 March 2024 year-end must file their accounts with Companies House by 31 December 2024 and their annual return including accounts, where applicable, with the Charity Commission by 31 January 2025. The same set of accounts with independent examiner reports or audit reports, where applicable, should be used for submission with both Companies House and the Charity Commission.
What charitable incorporated organisations (CIOs) must submit
CIOs must answer questions about the charity in an annual return and include copies of the trustee’s annual report and accounts.
If the charity income is over £25,000, the accounts also need to be externally checked before submitting a copy of the independent examiner’s report alongside the annual return. You must also declare there are no serious incidents you have not already been reported.
Similarly, a full audit is required when a charity’s income is over £1 million, gross assets over £3.26 million and income over £250,000.
Unlike with Companies House, there are no filing penalties for late submission of the annual return, however, the fact that the submission is late, or was late for any previous period is stated on the Charity Commission page for the Charity. This may have an impact on the willingness of future donors or grantors to provide funding to the charity if it appears that they are unable to meet their regulatory obligations.
If you need help preparing your annual return, please contact Charlotte Willmore and our Charities Team at charities@wildercoe.co.uk.
