In this Frequently Asked Friday blog, Helen Oparinde, our Sector Growth Coordinator, tackles a question that comes up more often than you'd think. She explains why missing your charity’s accounting deadlines can have bigger consequences than expected – from official warnings to funding knockbacks – and shares what trustees can do to stay on top of their financial responsibilities without getting buried in red tape.
The question
Does it matter if our charity doesn’t submit our accounts on time?
Answer
Yes – it really does!
It might not feel urgent, but submitting your charity’s accounts and returns on time each year is a big deal, both legally and practically.
The legal bit (don’t skip it!)
Registered charities must send their annual return to the Charity Commission within 10 months of their financial year-end. What you need to submit depends on your charity’s income; it could be as simple as outlining your income and spending, or it might include a trustee annual report and full audited accounts.
If you're not sure what applies to your organisation, check the Charity Commission’s guidance on preparing an annual return.
Missing deadlines could count as a breach of duty—which means not following the legal responsibilities of being a trustee. The Charity Commission can issue official warnings to charities and their trustees if they believe there’s been mismanagement or a failure to meet your obligations, including not filing your accounts.
You can read more about this in the Charity Commission's Q&A on official warnings.
Why it matters to funders
Most funders will do some background checks before awarding a grant – including checking your record on the Charity Commission website. If you’ve submitted late accounts in the past five years, they’ll see it.
Recent funding programmes like the Safer Nottinghamshire Together Future Grant asked applicants about their income and expenditure, and whether they had signed annual accounts. Delays or missing information could raise red flags during the assessment process.
What’s on the horizon?
There’s been talk since 2023 about HMRC tightening the rules for charities that don’t submit their returns on time.
The Long Partnership reported that HMRC was considering stopping Gift Aid payments and tax reliefs for charities that fall behind with their reporting. The idea was to make sure tax returns are submitted when required, with reliefs potentially withheld until everything’s up to date.
More recently, the Charity Tax Group highlighted draft legislation for the Finance Bill 2025–26. It suggests that HMRC could take an even firmer stance by declaring a charity to have failed the ‘management condition’ (which requires charity managers to be ‘fit and proper’ persons). If this condition isn’t met, access to tax reliefs could be withdrawn.
This particular change hasn’t been published yet, as it’s still in draft guidance rather than law – but it’s worth keeping an eye on.
In short: filing late could soon come with financial consequences beyond just the Charity Commission.
What can you do?
- Make sure your accounts and returns are submitted on time each year
- Keep your Charity Commission and HMRC records up to date
- Get support if you’re unsure what’s required – Community Accounting Plus offers free resources, templates, and tools to help you stay on track
Not sure where to start, or worried about getting it wrong?
Understanding your legal and financial responsibilities as a trustee is key to running a compliant and confident charity. If this blog has raised questions or left you feeling unsure, why not join our upcoming course: Being a Trustee: What Does it Mean?
We’ll walk through the core duties of trustees, including financial reporting, in a friendly, accessible way. Ideal if you’re new to the role or just want to brush up and feel more confident.
