Under the revised Charities SORP 2026 (Statement of Recommended Practice), only charities with incomes of more than £15m will be required to produce a detailed statement of cashflows, reducing the burden on charities with an income between £500,000 and £15m for accounting periods starting on or after 1 January 2026.

There is also a shake-up to trustees’ annual reports to include a wider range of achievements and risks, as well as the introduction of three new tiers based on annual income that require the most detail and transparency from the UK’s largest charities.

A charity will have to assess their tier each year based on their annual gross income only. It should be noted that the additional criteria for defining a small company (ie, employee numbers and total assets) are not considered in determining the thresholds for the SORP tiers.