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. Filing late puts you in default and, if it becomes persistent, at risk of Commission action. It is a common problem: the Commission's 2023-24 annual report records that only 81% of charities had an up-to-date annual return at the year end, down from 91% the year before. 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

What the return asks you for depends on your income and on your legal structure. The bands below are the ones GOV.UK sets out under its heading "What charitable companies and unincorporated organisations need to submit" — if your charity is a CIO, read the CIO paragraph underneath them instead. Either way, read the bands as the scope of the return questions and uploads, not as the scope of your underlying duty to prepare accounts and a trustees' annual report, which is set by the Charities Act 2011 and applies whatever your income (see Step 3):

Under £10,000 — The return asks for income and spending figures only. Nothing to upload, unless your charity is a CIO (see below).

£10,000 to £25,000 — Answer questions about your charity's activities and finances. Unless your charity is a CIO (see below), you do not need to upload accounts or your trustees' annual report — but you must still prepare them.

Over £25,000 — Upload your trustees' annual report and accounts, plus the independent examiner's or auditor's report if your accounts had to be examined or audited (examination is required above £40,000 for a financial year ending on or after 30 September 2026, and above £25,000 for an earlier year). This is the section 163(1) filing threshold for a charitable company or unincorporated charity. You must also confirm there are no unreported serious incidents.

If your charity is a CIO, the upload bands above do not apply to you. Every charitable incorporated organisation must include its trustees' annual report and accounts with the annual return whatever its income. Under section 163(3)(a) of the Charities Act 2011, for a charity constituted as a CIO "the requirement imposed by subsection (1) applies whatever the charity's gross income is" — so the £25,000 transmission threshold in s.163(1) does not gate a CIO at all. The Charity Commission's own CC15d states the rule the same way: "all charitable incorporated organisations (irrespective of income) and those registered charities with a gross income in the financial year exceeding £25,000 must file their accounts and an annual report with the Commission." Above £25,000 a CIO must also declare there are no unreported serious incidents, and above the scrutiny threshold — £40,000 for a financial year ending on or after 30 September 2026, £25,000 for an earlier year — it must also get its accounts independently examined and upload the examiner's report.

GOV.UK's trustees' annual report guidance sets the filing point for charitable companies and unincorporated charities as a three-limb test rather than a single income figure. For a charity on accruals accounts it says you must send a copy of the report to the Commission if: "your charity is a Charitable Incorporated Organisation (CIO)"; "your charity is a trust, unincorporated association or company and its income is over £25,000"; or "we ask for it". (The same list for charities on receipts and payments accounts reads "your charity is a trust or unincorporated association and its income is over £25,000" — a charitable company cannot use that format.) Income over £25,000 is therefore one route into the filing duty, not the only one: under s.163(2) of the Charities Act 2011, a charity whose gross income does not exceed £25,000 must still transmit a copy of its annual report if the Commission requests it. And the list does not gate CIOs by income at all, since they file whatever their income (s.163(3)(a)). Preparing the report is a separate duty that is universal to every structure.

Audit thresholds: For a financial year ending before 30 September 2026, a statutory audit is required if gross income exceeds £1 million, or if gross assets exceed £3.26 million and income exceeds £250,000. For financial years ending on or after 30 September 2026, SI 2026/427 — in force since 30 September 2026 — moves every figure in that test: the audit income threshold rises to £1.5 million, the gross assets limb rises from £3.26 million to £5 million (with its paired income figure moving from £250,000 to £500,000); separately, the independent examination threshold rises from £25,000 to £40,000. If your charity's financial year ended before 30 September 2026, the previous thresholds still apply to that year, even if you prepare the accounts after that date.

Step 2: Prepare your accounts

Your accounts should be ready and approved by the trustees before you start the annual return. Receipts and payments accounts are an option for non-company charities with a gross income of £250,000 or less (Charities Act 2011 s.133) — rising to £500,000 for financial years ending on or after 30 September 2026 (SI 2026/427 art.3(3)). Above that, accruals accounting is required. Make sure your accounts are prepared in the right format and include all required sections — our charity accounts guide covers the two formats, independent examination thresholds, and what each type of accounts must include.

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 with a gross income of not more than £500,000, the Tier 1 framework simplifies your reporting — check our SORP 2026 Tier Calculator to see what applies, and read our full SORP 2026 explained guide for what Tier 1 charities need to change.

Step 3: Prepare your trustees' annual report

Every charity needs a trustees' annual report. Section 162 of the Charities Act 2011 puts the duty on "the charity trustees of a charity" for "each financial year", with no income threshold attached. Income determines how much the report must contain and whether you file it with the return, not whether you prepare one. 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

If your charity prepares receipts and payments accounts, this can be a concise document — GOV.UK's words are "If your charity prepares receipts and payment accounts, you can prepare a simple report", and a few pages covering the essentials will do it. If your charity prepares accruals accounts, the report follows the Charities SORP and the level of detail depends on which SORP tier you are in. The Charity Commission publishes detailed guidance on what to include, and our trustees' annual report guide sets out the required content for each.

Step 4: Get your examination or audit done

If your income exceeds £25,000, your accounts must be independently examined (for financial years ending on or after 30 September 2026, this threshold rises to £40,000). Above £1 million income (rising to £1.5 million for financial years ending on or after 30 September 2026), you need a full audit.

Finding an independent examiner: For small charities, this does not have to be an accountant. Any independent person with the "requisite ability and practical experience" can examine the accounts of a charity with income of £250,000 or less — £500,000 or less for financial years ending on or after 30 September 2026 (SI 2026/427 art.3(5)(b)). Many local CVS organisations offer this service, sometimes free or at reduced cost for small charities. Our charity independent examination guide explains the thresholds, what an examiner checks, and how to find one.

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 you to declare that there were no serious incidents that should have been reported to the Commission but were not — so an incident you reported at the time does not stop you signing it, and one you did not report should be submitted before you file. 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, or any income at all if your charity is a CIO), upload your trustees' annual report and accounts — plus the examiner's/auditor's report if your accounts had to be examined or audited — 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