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Preparers Levy 2025-26
FRC PREPARERS LEVY 2025-26 FACT SHEET
The purpose of the Financial Reporting Council (FRC) is to serve the public interest and support economic growth by upholding high standards of corporate governance, corporate reporting, audit and actuarial work. The FRC's powers come primarily from the Companies Act 2006 (CA 2006) and the Statutory Auditors and Third Country Auditors Regulations 2016.
The FRC sets the UK Corporate Governance Code and UK Stewardship Code, UK accounting standards (UK GAAP) and technical actuarial standards; promotes high quality of corporate reporting; sets audit and ethical standards for auditors; monitors and enforces audit quality; operates independent enforcement arrangements for auditors, accountants and actuaries; and supervises relevant professional bodies.
The FRC carries out these responsibilities under the sponsorship of the Department for Business and Trade (DBT).
FRC Preparers Levy
By agreement with DBT and HM Treasury, the FRC is funded partly through a levy on organisations that fall within its regulatory remit. Details are available at: https://www.frc.org.uk/about-us/funding/.
The following table helps you identify your organisation and what benefit it derives from the FRC's work:
The FRC's funding arrangements are based on non-statutory arrangements put in place at the request of the Government. Should these prove unworkable, the Secretary of State is able to make regulations to introduce levies on a statutory basis for the purpose of meeting any part of the expenses of a grant-aided body under Section 17 of the Companies (Audit, Investigations and Community Enterprise) Act 2004.
Calculation of the Preparers Levy
The 2025/26 levy is made up of a minimum levy of £2,160 and further amounts for companies above a certain threshold, with the rate per £million declining in five levy size bands. AIM, AQUIS market and large private entities receive a 50% discount. Public sector organisations receive a 75% discount on the rates. An example of the levy calculation for a premium listed entity is as follows:
Organisation: ABCD PLC Customer number: Tariff data: £ 765,000,000
| Range | Levy rate 2025/26 | Calc Value | Calc Multiplier | Calc Rate | Levy | |
|---|---|---|---|---|---|---|
| Min fee | Up to £100m | £2,160 | £2,160 | |||
| Band 1 | £100m - 250m | £21.18 | 150 | X | £21.18 | £3,177 |
| Band 2 | £250 - £1000m | £16.16 | 515 | X | £16.16 | £8,322 |
| Band 3 | £1,000m - £5,000m | £15.63 | X | |||
| Band 4 | £5,000m - £25,000m | £0.2544 | X | |||
| Band 5 | > £25,000m | £0.0480 | X | |||
| Total levy | £13,659 | |||||
| 50 % Discount | £6,830 | |||||
| Levy payable | £6,829.70 |
The levies requested from listed entities are calculated from their market capitalisation on 30 September 2024. For large private entities, the FRC calculates the levy based on the turnover disclosed in the latest annual report available at Companies House on 30 September 2024. For large private subsidiaries within a group, the FRC applies the levy to the total turnover of all those subsidiaries with a turnover of more than £500m and invoices the ultimate domestic parent for the levy based on that total. This has the effect of reducing the levy that would otherwise be requested.
Purchase orders
A number of organisations provide the FRC with a Purchase Order (PO) number to facilitate the payment process. In general, the PO number has been provided by the individual or team responsible for preparing the organisation's annual report and accounts.
Contact Us
If you have received your invoice from the FCA and you have a query, please contact the FCA contact centre on 0300 500 597 or [email protected]
If you have received your invoice from Adetiq Limited and you have a query, please contact the Levy Collection Team at Adetiq on 01273 764 511 or [email protected].
If you have a policy related question on the levy, please email us [email protected].
Financial Reporting Council
July 2025
13th Floor 1 Harbour Exchange Square London E14 9GE Tel: +44 (0)20 7492 2300 Fax: +44 (0)20 7492 2399 www.frc.org.uk The Financial Reporting Council Limited is a company limited by guarantee. Registered in England number 2486368. Registered office: as above.
FRC Confidential