Receipts and payments accounts

Receipts and payments is the lighter of the two ways a charity can present its accounts. Instead of the accruals approach set out in the Charities SORP, you record the cash that actually came in and went out during the year, alongside a simple statement of assets and liabilities. For a small charity with straightforward finances, it saves time and cost.

Only a non-company charity in England and Wales with gross income of £250,000 or less may currently use receipts and payments accounts; all charitable companies must prepare accruals accounts under the SORP. (Source: GOV.UK, Receipts and payments accounts (CC16), accessed 9 July 2026.) In Scotland and Northern Ireland, accruals accounts are required at £250,000 gross income or more.

From an intended 1 October 2026 the England and Wales threshold is due to rise to £500,000, so more small charities will have the choice. Check which regime fits your charity in the UK Charity Compliance Handbook and with the SORP tier checker.