This article is part of a suite of charity law updates on the Autumn 2026 Charity Commission guidance. 

SORP 2026 applies to all charities preparing accruals accounts for financial years starting on or after 1 January 2026. This section explains the new three-tier reporting structure, the updated trustees' annual report headings, and what trustees should do to ensure compliance.

What’s staying the same

The fundamental obligation to prepare an annual report and accounts remains unchanged, as does the requirement to report on public benefit, disclose your reserves policy, and include a risk management statement if your accounts are subject to audit. SORP 2026 builds on, rather than replaces, these established obligations.

What's changed?

For financial years starting on or after 1 January 2026, all charities required to or choosing to prepare accruals accounts must comply with the Charities SORP 2026. For financial years starting on or before 31 December 2025, SORP 2019 continues to apply. The transition is now live for many charities.

The new three-tier structure

SORP 2026 introduces a tiered reporting framework based on income: Tier 1 covers charities with income up to £500,000, Tier 2 covers those with income between £500,000 and £15m, and Tier 3 covers those with income above £15m. The tier a charity sits in determines the level of detail required in both its accounts and its trustees' annual report.

New headings in the trustees' annual report

SORP 2026 introduces the following reporting headings for the trustees' annual report: objectives and activities; achievements and performance; financial review; plans for future periods; structure, governance and management; reference and administrative details; sustainability; exemptions from disclosure; and funds held as a holding trustee.

The inclusion of a dedicated 'Sustainability' heading is new and is addressed separately in Section 3.

Public benefit reporting thresholds aligned to SORP tiers

If a charity's gross annual income is £500,000 or less, it can choose how it reports on public benefit but must at minimum state: 

• What the charity's charitable purposes are.
• What the charity has done during the year to carry out those purposes for the public benefit.
• The Commission's public benefit guidance has been taken into account when making any relevant decision.  
• If gross income is over £500,000, extra information is required, with the level of detail depending on the charity's SORP tier.

Key action points

• Identify which SORP tier your charity falls into and ensure your annual report and accounts are being prepared to the appropriate level of detail.
• If your financial year started on or after 1 January 2026, SORP 2026 applies. Brief your treasurer, finance committee and accounts preparer immediately if you have not already done so.
• If your financial year started before 1 January 2026, SORP 2019 still applies for that year - do not adopt SORP 2026 mid-year unless your auditor or independent examiner specifically advises otherwise.
• Review the new reporting headings against your current annual report template and update accordingly; pay particular attention to the new Sustainability heading.