Thresholds – what you need to do as your PCC grows

What the Charity Commission and Charity Law requires of you as a PCC depends on your “gross income”. (see below for how this is calculated)

Gross Income under £100,000

If the Gross Income of your PCC is less than £100,000 you:

  • can choose to prepare your accounts on the Receipts and Payments basis. (click for guidance) Parishes with gross incomes greater than £250,000 must produce “accruals” accounts, which provides a more accurate view of the PCC’s financial position. Smaller parishes may choose this option, particularly where the treasurer has a broader knowledge of accounting practice.
  • must have your accounts independently examined (click for guidance)
  • do not need to register with the Charity Commission.

Gross Income over £100,000 but less than £250,000

If the Gross Income of your PCC is more than £100,000, but less than £250,000 you

  • can still choose to prepare your accounts on the receipts and payments basis. (click for guidance)   Parishes with gross incomes greater than £250,000 must produce “accruals” accounts, which provides a more accurate view of the PCC’s financial position. Smaller parishes may choose this option, particularly where the treasurer has a broader knowledge of accounting practice.
  • must have your accounts independently examined (click for guidance)
  • at this level of income, you must now normally register with the Charity Commission. (click for guidance).

Gross Income over £250,000

If the Gross Income of your PCC is more than £250,000 you

  • must prepare your accounts on the accruals basis. (click for guidance)
  • must have registered with the Charity Commission. (click for guidance).
  • can still have your accounts independently examined by a qualified person (click for guidance), unless either your income exceeds £1 million or your assets exceed £3.26 million, when in either case you will need to have a full audit of your accounts

Gross Income Definition:

For accounts prepared on the Receipts and Payments basis, gross income is the total receipts shown in the statement from all sources excluding the receipt of any endowment.

For accounts prepared on an Accruals basis, gross income is the total incoming resources shown on the Statement of Financial Activities, including any amount transferred to income funds from endowment funds in order to be available for spending, but excluding the receipt of any endowment.