Q1 finance update for u3as
Derek Harwood, Third Age Trust Treasurer
This quarterly update provides an overview of the Trust’s financial performance, how we are investing in our plans, and key financial information for u3a committees.
At a glance:
- Q1 performance: the Group recorded a £103k trading surplus in the first quarter, £10k below budget, largely reflecting lower-than-expected VAT recovery.
- Investment in our plans: we have budgeted £4.2m of expenditure for 2026/27, including investment in Digital Services for u3as as part of delivering our strategic plan.
- 2025/26 accounts: our audited accounts are available on the u3a website and include an adjustment following the repayment of VAT previously over-reclaimed.
- For your u3a: the Trust’s mileage rate has increased to 55p per mile, and CLA licences for 2026/27 are now available at £72 including VAT.
How the Trust is performing
2025/26 year end
In July, I published a provisional Year End Report providing an early overview of the Trust’s financial performance for 2025/26. Since then, we identified that the Trust had over-reclaimed VAT. This has now been repaid and the adjustment is reflected in the audited accounts.
The full audited accounts provide the definitive financial position for 2025/26 and are available to read.
Our budget and investment for 2026/27
Our approved 2026/27 budget is designed both to fund the Trust’s core activities and to invest in the development needed to deliver our strategic plan.
We are planning expenditure of £4.2m, an increase from last year, with planned income of £3.8m, supported by continued membership growth. As planned, we will use some of our accumulated reserves to fund this investment.
This includes Digital Services for u3as (DSU), a significant programme looking at the digital tools and services u3as will need now and in the future.
This is an example of how we are using reserves built up in previous years to invest in our strategic priorities and the future support we provide to u3as.
First quarter performance
At the end of Q1, the Group is performing slightly below budget.
The Trust, excluding our trading subsidiary TATTL and before investment movements, recorded a £1k deficit, compared with a budgeted surplus of £17k. The £18k variance is largely due to VAT recovery being lower than originally anticipated.
TATTL recorded a £104k surplus, compared with a budgeted £97k surplus – £7k ahead of budget.
Taken together, the Group therefore recorded a £103k trading surplus, compared with a budgeted £113k – £10k below budget.
Overall, this represents a relatively small variance against our Q1 plan, with TATTL’s stronger performance partly offsetting the impact of lower VAT recovery within the Trust.
What your u3a needs to know
CLA licences for 2026/27
A Copyright Licensing Agency (CLA) licence allows a u3a to copy and reuse eligible extracts from digital and print books, magazines, journals and websites for educational and teaching purposes.
The cost of a new licence covering 1 August 2026 to 31 July 2027 is £72 including VAT.
What your u3a should do: If your u3a needs a CLA licence, information on purchasing one through the Trust is available on the u3a website.
Annual returns - thank you
Thank you to everyone who completed their u3a’s 2026 Annual Return promptly.
We have now received more than 1,000 Annual Returns, with only a handful remaining outstanding. Prompt returns help us confirm national membership numbers, support the Trust’s cash flow and reduce the staff time needed to follow up outstanding submissions.
If your u3a has not yet submitted its Annual Return, please do so as soon as possible.
Support for u3a Treasurers
The National Treasurers Peer Support Network provides an opportunity for u3a Treasurers to share experience, ask questions and learn from one another.
The network includes a dedicated Facebook group and quarterly Zoom workshops providing a deeper look at topics requested by Treasurers. Recent subjects have included online renewals through Beacon and changes to free banking services available to charities.
If you are a u3a Treasurer and would like to find out more about the network, please contact me at
Looking ahead
The full audited accounts for 2025/26 will be published with the AGM papers by the end of September.
I’ll continue to provide regular updates on how the Trust is performing against our 2026/27 financial plan, how our investment is supporting our strategic priorities, and financial developments that u3a committees need to be aware of.