Third Sector Accountancy Limited

	Page
Company Information	1
Directors' Report	2—8
Accountant's Report	9
Income and Expenditure Account	10
Balance Sheet	11—12
Notes to the Financial Statements	13—17

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Company No. 10581248

Directors' Report For The Year Ended 31 January 2026

Directors' Report

The directors present their report and the financial statements for the year ended 31 January 2026.

Principal Activity

We are a firm of Chartered Accountants and Registered Auditors offering accountancy services primarily to those within the not-for-profit and co-operative sector. We work with co-operatives, community interest companies, community benefit societies, charities and individuals throughout the UK.

Vision

We are a value-driven organisation, and our primary purpose is to support and encourage positive social change by providing quality financial services. The co-op started in 2017 as a group of friends determined to help make the world a better place by using our expertise to provide top quality financial services to social change organisations.

You can read more about our vision and how we aim to achieve it here:

tsa.coop/our-vision

Legal Structure

Third Sector Accountancy Limited is a private company, limited by guarantee, incorporated in England & Wales, registered number 10581248. The registered office is Holyoake House, Hanover Street, Manchester, M60 0AS.

Governance: Worker's Co-operative

The Company is organised as a workers co-operative and, in accordance with the co-operative principle of democratic member control, each member worker has one vote at general meetings. Only employees may be admitted to membership of the co-operative, subject to various qualifying conditions. All employees attend monthly meetings and have an equal say in the running of the co-operative.

This means that all staff are highly motivated, interested in the sector and in their clients, and take ownership of their work. We believe that being a co-operative leads to a better outcome for us and for our clients.

We use the system of sociocracy to best function as an effective and efficient co-operative.

Sociocracy offers a decision making and governance model in line with the ethos of the cooperative identity, which honours and centres the human individual within the organisation. As values-based and principle-driven socio-economic organisations, co-ops benefit from an operating system that has a coherence and a synergy with the Cooperative Identity. Sociocracy is an approach to decision making and organisational structuring that is quick and easy for a co-op or start-up group to start using.

Sociocracy combines consent-based decision making, a decentralised system of authority and intentional processes. This improves decisions and processes over time into a governance system that supports effective and efficient processes while increasing connection, listening and co-creation among members.

Reserves Policy

Profits of the Company can be applied in the following ways:

...CONTINUED

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Third Sector Accountancy Limited

Directors' Report (continued)

For The Year Ended 31 January 2026

Principal Activity - continued

To create a general reserve for the continuation and development of the co-operative;

In accordance with the co-operative principle of member economic participation, to a bonus for all staff, either equally or in accordance with some other equitable formula;

In accordance with the co-operative principle of concern for the community, to make payment for social, co-operative and community purposes.

On winding up of the Company, any balance of assets remaining may not be distributed among the co-operative’s members but shall be transferred to some other common ownership co-operative(s) or to Co-operatives UK (or any body that succeeds to its function). If such residual assets cannot be distributed in this manner they shall be transferred to some other organisation(s) whose purpose is to promote and support the co-operative movement and common ownership enterprises.

Tax Policy

The company meets the standards and requirements of the Fair Tax Foundation UK Small Business Standard for the Fair Tax Mark certification.

The Company is committed to paying all the taxes that we owe in accordance with the spirit of all tax laws that apply to our operations. We believe that paying our taxes in this way is the clearest indication we can give of being responsible participants in society. We will fulfil our commitment to paying the appropriate taxes that we owe by seeking to pay the right amount of tax, in the right place, and at the right time. We aim to do this by ensuring that we report our tax affairs in ways that reflect the economic reality of the transactions that we undertake during the course of our trade.

We will not seek to use those options made available in tax law, or the allowances and reliefs that it provides, in ways that are contrary to the spirit of the law. Nor will we undertake specific transactions with the sole or main aim of securing tax advantages that would otherwise not be available to us based on the reality of the trade that we undertake. The Company will never undertake transactions that would require notification to HM Revenue & Customs under the Disclosure of Tax Avoidance Schemes Regulations or participate in any arrangement to which it might be reasonably anticipated that theUK’s General Anti-Abuse Rule might apply.

We believe tax havens undermine the UK’s tax system. As a result, whilst we may trade with customers and suppliers genuinely located in places considered to be tax havens, we will not make use of those places to secure a tax advantage, and nor will we take advantage of the secrecy that many such jurisdictions provide for transactions recorded within them. Our accounts will be prepared in compliance with this policy and will seek to provide all the information that users, including HM Revenue & Customs, might need to properly appraise our tax position.

We provide tax advice to our clients in order to help them to make use of reliefs and exemptions as set out in law, and to make the best possible decisions so as to minimise tax liabilities. We will not advise clients to do anything that gains a tax advantage that is not within the spirit of the law, or to disguise the economic reality of a transaction, or to use a tax haven. Furthermore we will not act for clients that seek unfair tax advantages in this way.

...CONTINUED

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Third Sector Accountancy Limited

Directors' Report (continued)

For The Year Ended 31 January 2026

Principal Activity - continued

Member value

Third Sector Accountancy Ltd (TSA) provided fulfilling work to 25 employees throughout the year with average job satisfaction at 3.9 out of 5 (2026), a reduction to 4.3 out of 5 (2025). Feedback from the 2026 staff survey highlighted that members particularly value TSA's supportive culture, the work of the Wellbeing Circle, and work-from-home flexibility. 86.6% of respondents would recommend working at TSA. Members also noted the unique challenges and rewards of a co-operative and sociocratic workplace. Members noted that running a co-op has its own stresses but also that well being is truly cared for at TSA.

Members continued to benefit from TSA’s commitment to training the next generation of co-operative accountants with multiple members achieving the ACA designation after years of work and study.

Member voice

TSA conducted 11 general meetings throughout the year and 4 quarterly in-person away days where members wrote, discussed and passed a myriad of proposals.

Members also participated throughout the year in both practice management and service circles. All of these meetings were conducted sociocratically. This day-to-day practice of workplace democracy is a demonstration that member voice drives the operations of TSA.

The staff survey was also conducted again which gave members the opportunity to reflect on wellbeing, workload, practice management, work culture and other issues. Members are invited to review the survey in full to investigate how responses have changed over time.

Co-operative principles

As a co-operative, Third Sector Accountancy are committed to organizing and working in line with the 7 co-operative principles. These principles act as a foundation of our strategy and working practices.

Voluntary and Open Membership

There are two types of circle, practice management circles which focus on administering the co-operative and service circles which focus on delivering services. Practice management and service circles have a voluntary and open membership which changes over time based on the professional interests of members. 2026 saw fluctuations in circle membership with some longtime members leaving circles and newly employed members choosing circles to join. This was to better manage certain members’ workload and make the co-op more resilient by upskilling newer members. Key aspects of regulatory compliance are controlled by members with the appropriate qualifications and experience.

Democratic Member Control

Members inform the vision and drive the operations of the co-operative through workplace democracy. Where there are critical concerns about proposals or operations, members draw these out in meetings and rework them until those critical concerns are (or are not) addressed. The members practice democratic control during both every general meeting of the co-operative and each circle meeting.

Member Economic Participation

Fundamentally - through voluntary and open membership and democratic member control - the assets of the co-operative are controlled in common and distributed to members in proportion to their transactions with the cooperative. Members did decide to pay a bonus during the 2026 financial year based on the hours worked during the year.

Autonomy and Independence

...CONTINUED

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Third Sector Accountancy Limited

Directors' Report (continued)

For The Year Ended 31 January 2026

Principal Activity - continued

Surveys show a majority of members feel they have substantial control over their work at the co-operative. There is range within the services TSA is contracted to deliver to prefer one specialism over another based on educational and professional preferences. The use of sociocracy promotes a culture where management is a function and not a status.

Education, Training, and Information

Continuing professional development was offered to all members during the year with both quality external training as well as members conducting bespoke internal training. Some key areas were organisational power, payroll standards, client manager training and grant income treatment. Circles themselves are powerful educational spaces where members develop valuable on-the-job expertise.

Cooperation among Cooperatives

TSA provided services to hundreds of other co-operatives during the year and wherever possible uses co-operative providers of goods and services. It is a proud customer of the likes of Webarchitects Co-operative & People Support Co-op. TSA’s offices are based at Holyoake House, the headquarters of Co-operatives UK. TSA is a member of Solidfund - a permanent common fund, paid for by voluntary subscriptions and workers.coop - a UK-based federation of worker co-ops. Members of the sector development circle attended key gatherings throughout the year disseminating accounting knowledge and promoting co-operative ways of working.

Concern for Community

During the year TSA members donated 212 hours or 30 days of time to a range of organisations pro-bono. (2025: 158 hours or 22.5 days). The monetary value of this work is approximately £13,300 (2025: £9,100). This demonstrates one way TSA have tried to act in line with the vision -

to help build a world in which compassion, cooperation and autonomy are the guiding principles, rather than greed and competition.

Furthermore, many members provide various support in a range of co-operatives and charities. This can include acting as Board Members, Trustees and volunteer finance support.

...CONTINUED

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Third Sector Accountancy Limited

Directors' Report (continued)

For The Year Ended 31 January 2026

Principal Activity - continued

Financials

Liquidity

During the year the co-operative continued to consolidate a strong liquidity position, with the current ratio standing at 1.66 (2025: 1.83). The cash ratio improved significantly from 0.47 (2025) to 0.60 (2026), demonstrating sustained strength and active management of cash reserves.

Profitability

Gross profit margin decreased by 2.16% from 14.55% (2025) to 12.39% (2026), reflecting higher cost of sales relative to revenue. This movement was driven by fluctuating chargeability linked to training contract obligations, general wage increases, and the member-agreed staff bonus of £51k included within direct wages. Excluding the member bonus, gross profit margin stood at 17.25%. As training contract commitments are completed and chargeability increases, underlying gross profit margins are anticipated to strengthen further.

Operating margin decreased by 0.64% from 3.55% (2025) to 2.91% (2026). This was primarily driven by the staff bonus and increased operational overheads, notably higher professional membership subscriptions as more members completed industry qualifications. Before the bonus distribution, operating margin reached 7.78%.

Revenue Growth

Revenue growth of 15.91% from 2025 to 2026 was strong, representing an acceleration compared to the 10.45% growth achieved from 2024 to 2025. This expansion reflects a growing demand for our accountancy and audit services across the co-operative and social enterprise sectors. However, members continue to emphasise that growth must remain sustainable and balanced with staff well-being.

Overall we consider ourselves to be in a solid financial position, well-equipped to sustain growth by successfully integrating newly qualified and experienced members alongside our current status as a training firm to serve both new and long-standing clients.

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Third Sector Accountancy Limited

Directors' Report (continued)

For The Year Ended 31 January 2026

Directors

The directors who held office during the year were as follows:

Patrick Morrello
Kate Adderley
Abbasali Shapuri	Appointed	24/04/2025
Jodie Parry	Appointed	08/10/2025

Statement of Directors' Responsibilities

The directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the surplus or deficit of the company for that period. In preparing the financial statements the directors are required to:

select suitable accounting policies and then apply them consistently;
make judgments and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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Third Sector Accountancy Limited

Directors' Report (continued)

For The Year Ended 31 January 2026

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Small Company Rules

This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

On behalf of the board

Patrick Morrello

Director

30/10/2026

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Third Sector Accountancy Limited

Accountant's Report

For The Year Ended 31 January 2026

Accountant's Report

Chartered Accountant's report to the directors on the preparation of the unaudited statutory accounts of Third Sector Accountancy Limited For The Year Ended 31 January 2026

In order to assist you to fulfil your duties under the Companies Act 2006, I have prepared for your approval the accounts of Third Sector Accountancy Limited For The Year Ended 31 January 2026 which comprise the Income and Expenditure Account, the Balance Sheet and the related notes from the company's accounting records and from information and explanations you have given to us.

As a practising member of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

This report is made solely to the directors of Third Sector Accountancy Limited , as a body, in accordance with the terms of our engagement letter dated 26 October 2026. Our work has been undertaken solely to prepare for your approval the accounts of Third Sector Accountancy Limited and state those matters that we have agreed to state to the directors of Third Sector Accountancy Limited , as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Third Sector Accountancy Limited and its directors, as a body, for our work or for this report.

It is your duty to ensure that Third Sector Accountancy Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit or loss of Third Sector Accountancy Limited . You consider that Third Sector Accountancy Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit of the accounts of Third Sector Accountancy Limited . For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the financial statements.

30/10/2026

Arlo Accountancy Limited

Chartered Accountants

107 Valley Road

Stockport

SK4 2DB

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Third Sector Accountancy Limited

Income and Expenditure Account

For The Year Ended 31 January 2026

Income and Expenditure Account

		2026	2025
	Notes	£	£
TURNOVER		1,047,690	903,894
Cost of sales		(917,925 )	(772,370 )

GROSS SURPLUS		129,765	131,524

Administrative expenses		(109,609 )	(104,396 )
Other operating income		10,500	5,000

OPERATING SURPLUS	3	30,656	32,128
Interest payable and similar charges		(1,377 )	(2,882 )

SURPLUS BEFORE TAXATION		29,279	29,246
Tax on Surplus	6	(5,573 )	(6,551 )

SURPLUS AFTER TAXATION BEING SURPLUS FOR THE FINANCIAL YEAR		23,706	22,695

The notes on pages 13 to 17 form part of these financial statements.

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Third Sector Accountancy Limited

Balance Sheet

As At 31 January 2026

Balance Sheet

		2026		2025
	Notes	£	£	£	£
FIXED ASSETS
Tangible Assets	7		3,377		3,140

			3,377		3,140
CURRENT ASSETS
Debtors	8	184,729		155,665
Cash at bank and in hand		103,523		53,301

		288,252		208,966
Creditors: Amounts Falling Due Within One Year	9	(173,504 )		(114,473 )

NET CURRENT ASSETS (LIABILITIES)			114,748		94,493

TOTAL ASSETS LESS CURRENT LIABILITIES			118,125		97,633

Creditors: Amounts Falling Due After More Than One Year	10		(19,986 )		(23,200 )

NET ASSETS			98,139		74,433

Income and Expenditure Account			98,139		74,433

MEMBERS' FUNDS			98,139		74,433

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Third Sector Accountancy Limited

Balance Sheet (continued)

As At 31 January 2026

For the year ending 31 January 2026 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

On behalf of the board

Patrick Morrello

Director

30/10/2026

The notes on pages 13 to 17 form part of these financial statements.

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Third Sector Accountancy Limited

Notes to the Financial Statements

For The Year Ended 31 January 2026

Notes to the Financial Statements

1. General Information

Third Sector Accountancy Limited is a private company, limited by guarantee, incorporated in England & Wales, registered number 10581248 . The registered office is Holyoake House, Hanover Street, Manchester, M60 0AS.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 section 1A Small Entities "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

2.2. Going Concern Disclosure

The directors have not identified any material uncertainties related to events or conditions that may cast significant doubt about the company's ability to continue as a going concern.

2.3. Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of software and from the rendering of accountancy, bookkeeping and tax services.

Rendering of services

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.

2.4. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Computer Equipment

33% straight line

2.5. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable surplus for the year. Taxable surplus differs from surplus as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other year and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

As at 31 January 2026, the Company had a deferred tax asset on its balance sheet of £608. As at 31 January 2025 the Company had a deferred tax asset of £537 with the movement in deferred tax being credited to the income statement.

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Third Sector Accountancy Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 January 2026

3. Operating Surplus

The operating surplus is stated after charging:

	2026	2025
	£	£
Bad debts	100	5,199
Depreciation of tangible fixed assets	2,407	3,407

4. Staff Costs

Staff costs, including directors' remuneration, were as follows:

	2026	2025
	£	£
Wages and salaries	730,331	622,574
Social security costs	77,473	52,192
Other pension costs	74,441	67,317

	882,245	742,083

5. Average Number of Employees

Average number of employees, including directors, during the year was: 23 (2025: 22)

6. Tax on Surplus

	Tax Rate		2026	2025
	2026	2025	£	£
Current tax
UK Corporation Tax	19.0%	19.0%	5,644	7,088
Deferred Tax
Deferred taxation			(71 )	(537 )


Total tax charge for the period			5,573	6,551

	2026	2025
	£	£
Profit before tax	29,279	29,246

Breakdown of tax charge is:
Tax on profit at 19% (UK standard rate)	5,563	5,557
Expenses not deductible for tax purposes	10	-
Deferred tax from unrecognised timing difference from a prior period	-	994

Total tax charge for the period	5,573	6,551

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Third Sector Accountancy Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 January 2026

Expenses not deductible for tax purposes:

Some business expenses, although entirely appropriate for inclusion in the reporting entity’s accounts, are not allowed as a deduction against taxable income when calculating the tax liability. Examples of such expenses are: client entertaining; non qualifying charitable donations; and fines and penalties.

Capital allowances:

The accounting treatment of capital assets is usually different than the tax treatment allowable. This is because, in the accounts, an asset is depreciated over its useful economic life. Whereas capital allowances are set rules in tax law applied to the type of asset. The differences, however, between the depreciation rate in the accounts and capital allowances claimed in the corporation tax return – are only timing differences – as eventually, the accumulated depreciation and the capital allowances claimed will equal one another.

7. Tangible Assets

	Computer Equipment
	£
Cost
As at 1 February 2025	21,361
Additions	2,643
Disposals	(1,472 )

As at 31 January 2026	22,532

Depreciation
As at 1 February 2025	18,221
Provided during the period	2,407
Disposals	(1,473 )

As at 31 January 2026	19,155

Net Book Value
As at 31 January 2026	3,377

As at 1 February 2025	3,140

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Third Sector Accountancy Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 January 2026

8. Debtors

	2026	2025
	£	£
Due within one year
Trade debtors	84,408	105,735
Prepayments and accrued income	99,043	49,173
Other debtors	470	20
Deferred tax current asset	-	537

	183,921	155,465
Due after more than one year
Other debtors	200	200
Deferred tax current asset	608	-

	808	200

	184,729	155,665

Included within prepayments and accrued income is work in progress of £84,706 (2025: £41,627). The work in progress balance represents services in progress as at year end which have not yet been billed. The balance is calculated as 90% (2025: 60%) of the value of unbilled time as at the year end, based on staff charge out rates. This increase is a recognition of TSA's average recoverability.

9. Creditors: Amounts Falling Due Within One Year

	2026	2025
	£	£
Trade creditors	7,526	5,057
Corporation tax	5,644	7,088
Other taxes and social security	13,812	13,280
VAT	61,453	55,666
Other loans	4,773	5,800
Pension contributions	6,576	5,967
Other creditors < 1 year	136	-
Accruals, deferred income and other creditors	73,584	21,615

	173,504	114,473

10. Creditors: Amounts Falling Due After More Than One Year

	2026	2025
	£	£
Other loans	19,986	23,200

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Third Sector Accountancy Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 January 2026

11. Company limited by guarantee

The company is limited by guarantee and has no share capital.

Every member of the company undertakes to contribute to the assets of the company, in the event of a winding up, such an amount as may be required not exceeding £1.

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