How to Prepare Your Charity's Annual Return: Step by Step

Your charity's annual return is due within 10 months of your financial year end. Miss it, and you risk being removed from the register — the Charity Commission took exactly this step against over 1,900 charities in 2023. The return itself is straightforward once you have everything prepared. The difficulty is gathering the right information before you start.

This guide walks through what to prepare, step by step, based on your charity's income level.

Before you start: know your deadlines

Your annual return deadline is 10 months after your financial year end. Common examples:

Year end	Annual return due
31 March	31 January
30 June	30 April
31 December	31 October
5 April	5 February

You submit through your My Charity Commission Account. Each trustee who needs to submit must have their own login — you cannot share credentials.

Step 1: Confirm your charity's income band

The information you need depends on your income:

Under £10,000 — Report income and spending figures only. No accounts or report required.

£10,000 to £25,000 — Answer questions about your charity's activities and finances. You do not need to upload accounts, but you should still prepare them for your own records.

Over £25,000 — Submit your trustees' annual report, accounts, and independent examiner's or auditor's report. You must also confirm there are no unreported serious incidents.

Audit thresholds: Currently, a statutory audit is required if gross income exceeds £1 million, or if gross assets exceed £3.26 million and income exceeds £250,000. From 1 October 2026, the audit threshold rises to £1.5 million and the independent examination threshold rises from £25,000 to £40,000.

Step 2: Prepare your accounts

Your accounts should be ready and approved by the trustees before you start the annual return. For charities under £500,000, receipts and payments accounts are acceptable. Larger charities must use accruals accounting.

Key figures you'll need:

• Total income for the year
• Total expenditure for the year
• Total funds carried forward (split by restricted and unrestricted if applicable)
• Value of assets (land, buildings, investments)

SORP 2026 note: If your accounting period starts on or after 1 January 2026, the new SORP applies. For charities under £500,000, the Tier 1 framework simplifies your reporting — check our SORP 2026 Tier Calculator to see what applies.

Step 3: Prepare your trustees' annual report

If your income is over £10,000, you need a trustees' annual report. At minimum, include:

• Charity name, registration number, and principal address
• Names of all trustees who served during the year
• Name and address of your bank
• Name and address of your independent examiner or auditor (if applicable)
• Your charity's objectives and principal activities
• How your charity has delivered public benefit
• A financial review — explain your financial position, reserves held, and reserves policy
• Plans for the next year

For charities under £500,000, this can be a concise document — a few pages covering the essentials. The Charity Commission publishes detailed guidance on what to include.

Step 4: Get your examination or audit done

If your income exceeds £25,000, your accounts must be independently examined. Above £1 million income (rising to £1.5 million from October 2026), you need a full audit.

Finding an independent examiner: For small charities, this does not have to be an accountant. Anyone with the "requisite ability and practical experience" can examine accounts under £250,000. Many local CVS organisations offer this service, sometimes free or at reduced cost for small charities.

Book your examiner well in advance — the months after 31 March (the most common charity year end) get busy.

Step 5: Update your trustee details

Before submitting, check that the Charity Commission's records match your current trustees. You can update trustee details through your My Charity Commission Account at any time — you do not need to wait for the annual return.

For each trustee, confirm:

• Full legal name
• Date of birth
• Date of appointment
• Whether they are still serving

If a trustee has resigned or been removed during the year, record the date they left.

Step 6: Check for serious incidents

The annual return asks whether your charity has had any serious incidents that should have been reported. These include:

• Fraud, theft, or significant financial loss
• Safeguarding concerns involving beneficiaries
• Links to terrorism or proscribed organisations
• Significant data breaches
• Suspicion that the charity has been a victim of crime

If an incident occurred and was not reported at the time, report it before submitting your annual return. Declaring "no incidents" when one occurred is a compliance failure that can trigger a Charity Commission inquiry.

Step 7: Submit your return

Log in to your My Charity Commission Account and follow the prompts. The questions are tailored to your charity's size and type — review the question guide beforehand so nothing catches you off guard.

Upload your documents: If required (income over £25,000), upload your trustees' annual report, accounts, and examiner's/auditor's report as PDFs. Make sure they are the final approved versions.

After submission: You will receive a confirmation. Your annual return data and accounts become publicly available on the Charity Commission's register.

Common mistakes to avoid

Late filing: Set a calendar reminder 2 months before your deadline to start preparation. The return itself takes 30-60 minutes once you have everything ready — it is the preparation that takes time.

Outdated trustee records: If you appointed or removed trustees mid-year, update the register before submitting. Discrepancies between your return and the register create unnecessary queries.

Forgetting to report serious incidents: The question is not whether the incident was resolved — it is whether it was reported to the Charity Commission at the time. If in doubt, report it now.

Mismatched figures: Your income and expenditure figures in the return must match your accounts exactly. Cross-check before submitting.

FAQ

How late can a charity file an annual return? There is no grace period. If you miss your deadline, the Charity Commission can mark your charity as "overdue" on the public register. Persistent late filing can lead to removal from the register entirely.

What happens if a charity doesn't file an annual return? The Charity Commission will send reminders. If you still don't file, your charity will be flagged as non-compliant on the public register. After extended non-filing, the Commission can remove your charity from the register, which affects your ability to claim Gift Aid, receive grants, and operate bank accounts.

Can I amend my annual return after submission? You cannot edit individual answers. You must contact the Charity Commission to request a full reset of your return, then resubmit. However, you can replace uploaded documents (accounts, reports) without a reset.

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This guide applies to charities registered with the Charity Commission for England and Wales. Scottish charities report to OSCR; Northern Irish charities to CCNI. This is general guidance, not legal advice.

Sources

• Prepare a charity annual return — GOV.UK
• Prepare a charity trustees' annual report — GOV.UK
• How to report a serious incident — GOV.UK
• Charity annual return question guide — GOV.UK