Charity Audit Avoidance

Charity Audit Avoidance

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A charitable company with a December 2014 year end, has this year just breached the £500,000 charity audit threshold, their income being £580,000. The trustees would prefer to avoid the additional costs and time involved with this if possible, and they are aware that the changes to charity audit thresholds went 'live' on the 31 March 2015, meaning that any charity with a year end on or after the 31st March 2015 would benefit from the new limits.

The limit they are interested in here being income threshold of £1,000,000. The charitable company does not have assets worth over £3.26m therefore the second criteria would not apply.

The question is therefore straightforward:

Can anyone think of any technical issue that would prevent the charitable company from extending it's accounting period to 31st March 2015 to take advantage of the new audit threshold?

I.e. have a 15 month accounting period up to 31st March 2015, where it's income for the extended period would still be under the new £1m limit.

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By JayEffBee
11th May 2015 17:22

I think you may need to check co act re making a change of year end as to when to do it. TRust following helps

 

Cheers

 

https://www.gov.uk/change-your-companys-year-end

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