The Office of the Third Sector and the Charity Commission have jointly published a new consultation, examining a package of proposals to reduce the red tape involved in financial reporting.

The two bodies have claimed that the proposals would reduce the regulatory burden for up to 75% of registered main charities, allowing them to meet their accounting and reporting obligations in a simpler, less expensive, way.

The actual proposals include:

• only registered charities with an income above £25,000 would need to prepare a Trustees Annual Return, currently a requirement for all registered charities
  
• the income threshold of £10,000, above which charities must submit their annual accounts to the Charity Commission would increase to £25,000
  
• the income threshold of £10,000, above which charities must have their accounts externally examined, would increase to £25,000
  
• the threshold of £100,000, above which a charity must prepare accruals accounts (as opposed to simpler receipts and payments accounts), would be raised to £250,000

Dame Suzi Leather, chair of the Commission, said: “Nearly three quarters of registered charities would benefit from a reduced regulatory burden under these recommendations. This would make things easier for these small charities and their trustees without significantly reducing the accountability and transparency which is crucial to maintaining the public’s trust and confidence in the charity sector as a whole.”

The consultation closes on 31 March 2008. To take part, visit:
/www.charitycommission.gov.uk/news/threshold.asp