Every payment institution and electronic money institution registered or authorised by the FCA pays an annual periodic fee to fund regulation and supervision. The rules are in FEES 4 of the FCA Handbook and the payment services and e-money fee blocks are in FEES 4 Annex 11. The FCA confirmed the 2026/27 rates in Policy Statement PS26/14 in July 2026. The short answer: a small payment institution pays a flat £652 for 2026/27, a small EMI pays £1,432, and authorised firms pay a minimum fee plus a tariff on income or e-money outstanding. This applies whether the firm holds authorised payment institution status, small payment institution registration or EMI authorisation.
How Are FCA Annual Fees Calculated?
The FCA divides its costs across fee blocks, which are groups of firms with a similar regulatory profile. The payment services and e-money blocks for 2026/27 are:
| Fee block | Who pays | Tariff base | 2026/27 fee |
|---|---|---|---|
| G.3 | Authorised payment institutions, registered account information service providers and authorised EMIs (for payment services) | Relevant income | £628 minimum, plus £0.309 per £1,000 above £100,000 |
| G.4 | Small payment institutions (small EMIs are also listed) | Flat fee | £652 |
| G.10 | Authorised EMIs | Average outstanding e-money | £2,063 minimum, plus £43.40 per £1 million above £5 million |
| G.11 | Small EMIs | Flat fee | £1,432 |
Relevant income is the sum of interest income, interest expenses, gross commissions and fees received, and gross other operating income from UK business, calculated the same way as the relevant indicator for own funds Method C in Schedule 3 to the Payment Services Regulations 2017.
Average outstanding e-money is the average value of e-money the firm has issued and not yet redeemed, as reported for the valuation period.
An authorised EMI that also provides payment services pays both its e-money fee and its payment services fee.
Minimum Fees and Thresholds
The minimum or flat fee applies even if the firm has little or no income. For 2026/27 the FCA raised minimum and flat fees by about 1%: the G.3 minimum moved from £622 to £628, G.4 from £646 to £652, G.10 from £2,043 to £2,063 and G.11 from £1,418 to £1,432.
Firms with very low revenue or outstanding e-money may find that the minimum fee exceeds what they would pay under the revenue-based calculation. In this case, the minimum fee applies. This is particularly relevant for newly authorised firms that have not yet commenced significant business activity.
When Are Fees Due?
The FCA invoices periodic fees from July each year. Payment is due by the date on the invoice, usually 30 days after it is issued. Firms whose fees exceeded £50,000 in the previous year pay part of the fee on account earlier in the year and the balance later.
If a fee is not paid in full by the due date, FEES 2.2.1R adds an administrative fee of £250 and interest at 5% a year above the Bank of England's Bank Rate, accruing daily. The FCA prefers payment by direct debit.
A firm authorised part way through the year pays a first-year fee based on its projected business for its first 12 months, reduced for the part of the fee year that remains (FEES 4.2.7E and 4.2.7F).
Regulatory Returns That Feed Fee Calculations
The tariff is calculated from data the firm sends the FCA. Under FEES 4.4.2R a firm must send its tariff data as soon as reasonably practicable and in any event within two months of the valuation date. For authorised firms this means relevant income and, for authorised EMIs, average outstanding e-money.
Late or inaccurate tariff data can produce an invoice that does not match the firm's actual business and creates avoidable work to correct it. Regular returns, such as FSA056 for authorised payment institutions and FIN060 for EMIs, also show the FCA whether the firm's reporting is reliable.
Managing Fee Burden
While firms cannot negotiate FCA fee rates, there are practical steps to manage fee burden effectively: ensure regulatory returns are submitted accurately and on time, so fee calculations are based on actual rather than estimated figures; verify that the firm is categorised in the correct fee block, misallocation can result in higher fees; review the fee invoice carefully against the firm's own revenue and outstanding e-money figures; budget for the annual fee well in advance, as the amount can be significant for smaller firms; and factor FCA fees into the firm's financial planning alongside other regulatory costs (including the Financial Ombudsman Service levy, FSCS levy where applicable, and compliance infrastructure costs).
Additional Levies and Contributions
The same invoice carries levies collected for other bodies. Payment institutions and EMIs pay the Financial Ombudsman Service general levy and may be charged the Money and Pensions Service levy. The FSCS levy does not apply to payment or e-money business, because customer funds are protected by safeguarding rather than by the compensation scheme.
Practical Tips
Payment firms should maintain a regulatory fees calendar with key dates for return submission, fee invoice receipt and payment deadlines. The compliance or finance team should review the FCA's annual fees consultation, published in the spring, and the final policy statement, published in early summer (PS26/14 for 2026/27), to understand any changes in rates or methodology. Firms experiencing genuine financial difficulty in meeting fee obligations should engage proactively with the FCA rather than simply missing the payment deadline: the FCA has discretion to agree instalment arrangements in exceptional circumstances.
Regulatory Counsel advises payment institutions and EMIs on regulatory cost management, FCA return submission and ongoing compliance obligations. Contact us for a written proposal.
Frequently asked questions
Authorised payment institutions are in fee block G.3 and small payment institutions in G.4. Authorised EMIs pay G.10 on e-money and G.3 on payment services income. Small EMIs pay the G.11 flat fee.
FEES 2.2.1R adds a £250 administrative fee and interest at 5% a year above Bank Rate on the unpaid amount. Continued non-payment becomes a supervisory matter.
A firm authorised part way through the fee year pays a first-year fee based on its projected business for its first 12 months, reduced for the part of the year remaining (FEES 4.2.7E and 4.2.7F).
FCA regulatory fees are generally treated as an allowable business expense for corporation tax purposes. Firms should confirm with their tax advisers.
A flat £652 under fee block G.4, plus any levies shown on the same invoice, such as the Financial Ombudsman Service general levy.
For 2026/27 the G.10 minimum is £2,063, plus £43.40 for each £1 million of average outstanding e-money above £5 million. Income from payment services is charged separately under G.3.
No. The FSCS does not cover payment or e-money business, so no FSCS levy applies to it. Customer money is protected by safeguarding instead.
Definitive guides on this topic
The permanent reference pages this article relates to.
UK Electronic Money Institution licence
FCA EMI requirements, EUR 350,000 capital, safeguarding, cost and timeline.
Electronic money institutions
Authorisation, safeguarding and ongoing compliance for e-money issuers.
Safeguarding and CASS 15
Safeguarding arrangements, reconciliations and the CASS 15 regime.