Charities SORP

The Charities Statement of Recommended Practice (SORP) tells trustees and their accountants how to turn a charity’s figures into accounts that give a “true and fair” view, and what to put in the narrative Trustees’ Annual Report. It applies only to charities preparing accruals accounts — not to those using simpler receipts and payments accounts.

The Charities SORP 2026 applies to accounting periods beginning on or after 1 January 2026. (Source: GOV.UK, 31 October 2025.) It introduces three tiers by income — Tier 1 up to £500,000, Tier 2 £500,000 to £15 million, Tier 3 above £15 million — with more detail required from larger charities. It also refreshes the Trustees’ Annual Report, adding dedicated sections on reserves, future plans, impact and environmental, social and governance (ESG) matters.

Most small charities that prepare accruals accounts sit in Tier 1. A charity using receipts and payments accounts does not apply the SORP at all. For a plain-English walk-through, see the UK Charity Compliance Handbook, and check where you fall with the SORP tier checker.