If your charity prepares accruals accounts you must follow the Charities SORP (Statement of Recommended Practice). The Charities SORP has recently been updated, and SORP 2026 will apply to reporting periods starting on or after 1 January 2026. 

 Key changes include:

Income and lease arrangements – new accounting rules with practical examples to help charities Three new tiers to ensure reporting is more proportionate to the charity's size:

Tier 1: Income up to £500,000

Tier 2: Income between £500,000 and £15 million

Tier 3: Income over £15 million

Source: gov.uk