What happens if a charity doesn’t submit accounts on time?

Timely reporting is one of the most important responsibilities of any UK charity. Yet many trustees underestimate how strict the rules are until they find themselves facing overdue accounts, frozen funding, missed grant opportunities or Charity Commission warnings. I have seen small charities fall into difficulties not because they did anything intentionally wrong, but simply because they did not understand the deadlines or the consequences of missing them.

In my opinion submitting accounts on time is not just a legal requirement. It is also one of the strongest signals of good governance and public trust. This guide explains what happens if a charity does not file its accounts on time, the penalties involved, how long delays remain visible on the Charity Commission register and what trustees should do if they have already missed a deadline.

Why charity accounts matter so much

Unlike private businesses, charities hold money for public benefit. This means the law requires a higher standard of transparency. Annual accounts show:

• How funds are raised

• How money is spent

• Whether the charity is financially sound

• Whether trustees are managing resources responsibly

• Whether charitable purposes are being delivered

Submitting accounts on time reassures donors, grant providers, regulators and beneficiaries that the charity is being run properly. When accounts are delayed, confidence drops quickly.

When charities must submit accounts

The deadlines depend on the type and size of charity and whether it is registered with the Charity Commission.

Registered charities with annual income over £25,000

They must file:

• Annual accounts

• Trustees' annual report

• Annual return

All must be submitted within 10 months of the end of the financial year.

Charitable incorporated organisations (CIOs)

CIOs must file their accounts regardless of turnover. The deadline is also 10 months after year end.

Charities with income under £25,000

They must complete annual reports and accounts but are not required to submit accounts to the Charity Commission unless specifically requested. They must still file an annual return (or annual update).

In my opinion smaller charities often relax too much and forget they still have reporting duties. Even if their accounts are not uploaded automatically, they are still expected to be prepared correctly and on time.

What happens if a charity does not submit on time?

Failing to file accounts is taken seriously. The Charity Commission views late filing as a warning sign that trustees may not be meeting their legal duties.

Below I break down the consequences you can expect.

1. Your charity will be marked as “overdue” on the public register

The Charity Commission updates a charity’s profile immediately when accounts are late. Anyone searching your charity will see a public warning on your record.

In my opinion this harms trust more than anything else. Donors and grant funders often check the register, and overdue accounts can:

• Put off corporate partners

• Reduce donations

• Affect grant eligibility

• Damage your charity’s reputation

The overdue notice stays on the register until the accounts are filed.

2. Repeated late filing leads to a permanent warning on record

If a charity files late over multiple years, the Commission highlights this pattern on the charity’s register entry. This becomes a long term reputational issue.

Even once the accounts are submitted, the history of late filing remains visible for years. This is something many trustees do not realise.

In my opinion repeated late filing makes a charity look disorganised, poorly governed and risky to fund.

3. The Charity Commission may contact trustees directly

If a charity does not file on time, the Commission may contact trustees to remind them of their duties. This contact is not optional and questions may include:

• Why are the accounts late?

• Does the charity have governance issues?

• Have trustees been fulfilling their responsibilities?

• Is the charity still active?

Trustees must respond promptly. Failure to cooperate can escalate the situation.

4. The Commission may place the charity under formal monitoring

If accounts remain missing or there is a pattern of late filing, the Commission can place the charity under regulatory monitoring.

This may involve:

• Enhanced scrutiny

• Requests for extra documentation

• Reviews of governance structure

• Checks on financial controls

In my experience this is stressful for trustees and can be avoided by timely filing.

5. Regulatory action or investigation

Where the Commission suspects deeper governance problems, it may open a regulatory compliance case. This is not common, but it can happen if:

• The charity repeatedly fails to file

• Trustees ignore reminders

• There is evidence of poor financial management

• There are concerns about misuse of funds

Investigations can become public, damaging the charity’s reputation permanently.

6. Trustees may be held personally responsible

Trustees are legally responsible for filing accounts. If a charity consistently fails to meet reporting duties, the Commission may consider whether trustees are fit to remain in their roles.

In serious cases the Commission can:

• Issue formal warnings

• Remove trustees

• Disqualify individuals from acting as trustees elsewhere

In my opinion trustees often underestimate how personal these responsibilities are.

7. Funding may be delayed, withdrawn or refused

Most grant providers check the Charity Commission register before awarding funds. If accounts are overdue, funders may:

• Withdraw applications

• Freeze pending payments

• Delay decisions

• Require extra evidence

• Reject your charity entirely

Even if your cause is worthy, late accounts can cost you thousands of pounds in funding.

8. Banks and partners may ask questions

When accounts are overdue, banks sometimes request updated financial statements, especially if the charity has loans or credit facilities. Other partners, such as councils, sponsors or landlords, may also begin asking for updated financial information.

This can create additional administrative pressure for trustees.

9. Loss of Gift Aid claims

Your ability to claim Gift Aid through HMRC is not directly tied to Charity Commission deadlines, but…

If your charity shows poor governance or appears inactive, HMRC may:

• Delay Gift Aid payments

• Request additional checks

• Review your eligibility

In my opinion falling behind on accounts creates risk across all areas of finance, not just reporting.

10. Risk of removal from the register (in extreme cases)

If a charity appears inactive because:

• It repeatedly fails to file

• It does not respond to correspondence

• It shows signs of poor governance

The Commission may remove the charity from the register.

This usually applies to dormant or abandoned charities, but prolonged non-compliance can trigger removal.

How long overdue accounts remain visible

The Charity Commission shows up to five years of filing history on the public register. If you file late, the late submission is permanently visible for that financial year.

Even after filing, the record will show:

“Accounts filed late”

This cannot be removed.

In my opinion this is reason enough to keep deadlines under control.

What trustees should do if accounts are already late

If your charity has missed its deadline, do not panic. The Commission prefers cooperation over punishment. Here is what I recommend.

1. Prepare your accounts as quickly as possible

Even if they are late, file them promptly.

2. Review your governing document deadlines

Some charities must also meet internal deadlines stated in their constitution.

3. Communicate with trustees

Make sure all trustees understand the urgency and the implications.

4. Submit a realistic explanation if asked

Be honest, factual and concise. Avoid blaming volunteers or advisers.

5. Put processes in place to prevent recurrence

For example:

• Create a compliance calendar

• Use cloud accounting

• Appoint a dedicated compliance trustee

• Seek external support

In my opinion preventative systems are the best solution.

Situations where late filing may be understandable

The Charity Commission recognises that some circumstances are outside a charity’s control. Examples include:

• Illness of key personnel

• Sudden loss of a treasurer

• Complex accounting transitions

• Significant changes in structure

• Serious external events

However even in these cases, trustees must still take steps to meet legal duties.

Real world examples

Example 1: A small arts charity

The treasurer leaves and the accounts are late. The charity is marked overdue and loses a grant that required an up to date register entry.

Example 2: A CIO managing community events

Late filing for two consecutive years triggers a compliance review. Trustees must attend meetings and produce additional documentation.

Example 3: A local youth club

The charity files four months late. The late filing mark remains on the register for future funders to see. A later grant application fails due to concerns about governance.

Example 4: A large regional charity

The accounts are complex and filing is delayed. The Commission requests explanations and places the charity under monitoring until improvements are made.

How to avoid late filing in the future

Maintain good bookkeeping

Accurate monthly records make year end far less stressful.

Use accounting software

Software avoids last minute panic over missing information.

Plan early

Start preparing accounts at least three months before the deadline.

Hold regular trustee meetings

Discuss finances consistently, not once a year.

Assign responsibility

Every board should have someone watching compliance.

Use professional support where needed

Small charities often need occasional help from accountants or independent examiners.

In my opinion prevention is much cheaper and easier than dealing with late filing consequences.

In my opinion: the real cost of late filing

Late filing is not only a legal issue. It affects:

• Donor confidence

• Trustee reputation

• Funding opportunities

• Long term stability

• Public trust

• How your charity is perceived

Even if the Commission does not impose penalties, the reputational damage can be significant and long lasting.

Final thoughts

Failing to submit charity accounts on time can lead to public warnings, loss of trust, missed grant opportunities and regulatory scrutiny. In my opinion the biggest consequence is reputational rather than legal. Donors, funders and communities expect transparency. When accounts are late, they begin to question the charity’s stability and governance.

Every trustee has a personal legal duty to ensure accounts are prepared and filed on time. With good planning, clear systems and early preparation, there is no reason a charity should fall behind. Timely reporting is one of the strongest signs of a trustworthy and well run organisation.