The FCA charges two kinds of fee: a one-off application fee when you apply, and an annual fee for every year you stay authorised. The application fee is modest; the annual fee is the one people underestimate. Here's exactly what's coming, including the levies that ride along on the invoice.
The application fee: £560 for limited permission
The FCA sorts application fees into ten pricing categories. A limited permission consumer credit application falls into Category 2, which is currently £560. It's paid by card inside the FCA's Connect system at the point of submission — the application won't go in without it. Where we file for you, we collect it with your final payment and pay it to the FCA as your agent, at cost and itemised as a disbursement on your invoice, so there's nothing for you to arrange with the regulator.
Two things to know about that £560. First, it's non-refundable: if your application is refused, or you withdraw it, the FCA keeps the fee. That's one of the strongest practical arguments for submitting a complete, well-prepared application first time. Second, it's outside the scope of VAT, so £560 is the actual amount.
Full permission applications cost more — they start at Category 3 (£1,120) and rise with the complexity of the permissions sought. If you've seen figures like £1,500 quoted for a "consumer credit licence", that's usually full permission territory or an out-of-date figure being recycled. For the limited permission route most finance-offering businesses need, the FCA's own published fee is £560. Fees do get revised (the FCA reviews them annually), so check the FCA's current fees page before you budget.
The annual fee: what you pay to stay authorised
Once authorised, your firm pays the FCA an annual fee — the FCA calls it a periodic fee — every year it holds its permission. The FCA's fee year runs April to March; rates are set at the end of June and invoices go out from July.
Your first year is pro-rated: you pay a proportion based on how many months of the fee year remain when you're authorised, and the FCA invoices you for it shortly after authorisation. After that it's a normal annual invoice.
Limited permission firms sit in the FCA's CC1 fee block. For the 2026/27 fee year that fee is £1,100 — and it is flat: the same £1,100 whether your credit income is £2,000 or £200,000. Only once consumer credit income passes £250,000 does a variable element start to apply on top. If you have read elsewhere that a small firm pays "a few hundred pounds", that figure is out of date. The CC1 minimum has been rising in staged increases since 2022, and 2026/27 is the final year of that uplift; from 2027/28 it rises with the FCA's own costs.
Rates are republished every year, so check the FCA's fee calculator for the current figure before you budget.
The extras on the invoice
Your FCA invoice isn't only the FCA's own fee. It also collects levies on behalf of other bodies in the regulatory system. For a limited permission firm in 2026/27 those are the Financial Ombudsman Service general levy at £55, the money guidance levy at £10, and the illegal money lending levy at £5. So the realistic annual total is around £1,170 — budget for the invoice, not just the headline fee.
Separately, if a customer complaint reaches the Financial Ombudsman there is a case fee of £680, although firms receive a £2,000 case-fee allowance each financial year. Handle complaints well in-house and most small firms never see it.
One more charge worth knowing exists so you never pay it: the £100 administrative fee for a late regulatory return (£250 until 1 April 2026). Authorised firms file annual returns through the FCA's RegData system (see our guide to your ongoing obligations after authorisation); miss a deadline and £100 is added automatically. Diarise the deadline and it never happens.
For a line-by-line walkthrough of the bill when it lands, see what your FCA annual invoice is actually made of.
What this means for your budget
For a typical business adding finance as a secondary activity, the realistic first-year picture is: £560 to the FCA on application, the cost of preparing the application itself (anything from your own time, to £2,000–£5,000+ for a consultant, to a fixed-price service like ours at £995), then a pro-rated annual fee after authorisation and an invoice of around £1,170 each year thereafter.
Authorisation is an entry cost and a running cost — but for a firm earning commission on customer finance, both are usually small against the revenue the finance option brings in. Our full cost guide walks through the whole picture.
Frequently asked questions
- How much is the FCA application fee for a consumer credit licence?
For a limited permission consumer credit application the FCA fee is £560 (pricing Category 2), paid by card in the FCA's Connect system at the point of submission. Where we file for you, we pay it to the FCA as your agent, at cost, itemised as a disbursement on your invoice — there is nothing for you to arrange with the FCA. It is non-refundable and outside the scope of VAT. Full permission applications start at £1,120 and rise with complexity. Fees are reviewed annually, so check the FCA's current fees page.
- Do I have to pay the FCA every year?
Yes. Every authorised firm pays an annual (periodic) fee. The FCA's fee year runs April to March, with invoices issued from July, and your first year is pro-rated from the date you're authorised. A limited permission firm sits in the CC1 fee block and pays £1,100 for 2026/27 — flat until consumer credit income passes £250,000 — plus about £70 in levies, so roughly £1,170 in total.
- What else appears on the FCA invoice?
Levies collected on behalf of other bodies: the Financial Ombudsman Service general levy (£55), the money guidance levy (£10) and the illegal money lending levy (£5) for 2026/27. Individually small, but they make the invoice total around £1,170 rather than the headline £1,100.
- Is the FCA application fee refundable if I'm refused?
No. The application fee is non-refundable whether the FCA refuses the application or you withdraw it. That's a strong reason to submit a complete, accurate, well-evidenced application first time.
This article is general information to help you understand the process, and is not legal or regulatory advice. CreditLicence is a regulatory consultancy; it is not authorised or regulated by the Financial Conduct Authority, nothing it provides is regulated advice, and it is not affiliated with, endorsed by, or acting on behalf of the FCA. FCA rules can change; always check the FCA's website for the current position.