Who this is for
Founders budgeting a UK remittance business before they apply. Every figure below is quoted from the regulator’s own page, with the date that page shows, so you can check it. Fees change: the FCA’s each July, HMRC’s last on 1 December 2025. This is educational, not regulatory advice. The UK launch guide covers the application itself.
1. The fork that sets the budget: SPI or API
A Small Payment Institution (SPI) is registered rather than authorised. It suits a business whose average monthly payment transactions stay under €3 million, it has “no ongoing capital requirements”, and safeguarding is optional. An Authorised Payment Institution (API) doing money remittance must hold €20,000 initial capital and must safeguard customer funds, under the FCA’s supplementary safeguarding regime in force since 7 May 2026 (FCA Approach Document, version 8, May 2026, paragraphs 3.4 and 3.47; PS25/12). The SPI vs API comparison covers the choice in more depth.
2. One-off fees before you can trade
| Line | SPI | API (remittance only) | Source |
|---|---|---|---|
| FCA application fee | £1,130 (Category 3) | £2,820 (Category 4) | FEES 3 Annex 1AR (2 July 2026); PS26/14 |
| HMRC MSB registration | £300 | £300 | gov.uk, fees from 1 December 2025 |
| HMRC premises fee | £400 per premises | £400 per premises | same |
| HMRC fit and proper test | £500 per person | £500 per person | same |
| Companies House incorporation (online) | £100 | £100 | gov.uk, fees from 1 February 2026 |
| ICO data protection fee | £52 (Tier 1) | £52 (Tier 1) | ico.org.uk, fees from 17 February 2025 |
| Total: one premises, one person tested | £2,482 | £4,172 | sum of the lines above |
The larger £5,640 Category 5 fee applies to firms offering the account-based payment services, not to remitters. HMRC registration is needed whatever your FCA status; the fit and proper fee applies to each person HMRC tests, so a firm with two tested managers adds a further £500. Agents you appoint later carry no FCA fee: the £3 per-agent charge was deleted from FEES 3 Annex 8R on 1 April 2026 (instrument FCA 2026/11). The agent guide covers what a principal submits.
3. Money you hold, not spend
- Initial capital. SPI: none. API doing money remittance: €20,000 (Approach Document 3.47).
- Safeguarding. SPI: optional, with the choice to opt in. API: mandatory, under CASS 15 and the supplementary regime in force since 7 May 2026 (PS25/12). The safeguarding account is a bank relationship, and in most launches it is the slowest item to secure.
4. Annual fees from year two
| Line | SPI | API | Source |
|---|---|---|---|
| FCA periodic fee 2026/27 | £652 flat (G.4) | £628 minimum (G.3), plus £0.309 per £1,000 of relevant income above £100,000 | FEES 4 Annex 11R (2 July 2026); PS26/14 |
| HMRC annual fee | £400 per premises | £400 per premises | gov.uk, fees from 1 December 2025 |
| ICO data protection fee | £52 | £52 | ico.org.uk |
| Companies House confirmation statement | £50 | £50 | gov.uk, fees from 1 February 2026 |
| Total: one premises | £1,154 | £1,130, plus the income-based element | sum of the lines above |
5. What the totals leave out
The regulatory fees are the smallest part of a launch budget. These lines have no published benchmark, so price them with quotes rather than averages:
- Compliance consultancy for the application pack, policies and the business plan. Ask for fixed-fee quotes.
- Provider minimums. KYC, payout and payment-gateway providers price by contract.
- The safeguarding account and bank onboarding, if you safeguard.
- People: a money laundering reporting officer, operations staff and the months of salary before revenue.
- Software. Building in-house or licensing a white-label platform. Whichever you choose, provider charges sit outside the software fee.
The FCA’s clock also matters to the budget. It starts when the FCA agrees the application is complete, and for an incomplete application the FCA “must make a decision within 12 months of receipt”. Runway, not fees, is what most launches run short of.
6. Software, for reference
Remitz is one white-label option. Its Starter plan is £299 a month plus a £1,500 one-time setup fee, for up to 5 corridors. Growth is £799 a month plus a £2,000 one-time setup fee, with unlimited corridors, iOS and Android apps and the eWallet module. Held unchanged for 36 months, the published fees come to £12,264 on Starter and £30,764 on Growth. Those figures exclude taxes, optional modules, bespoke development, provider charges and internal operating costs. Firms whose FCA application is still in progress can use a non-operational applicant environment, quoted on request. Full detail is on the pricing page. Remitz supplies the software; the authorisation, the safeguarding and the provider contracts stay with the operator.
Sources
- FCA Handbook, FEES 3 Annex 1AR (2 July 2026) and FEES 3 Annex 8R (1 April 2026); FCA, “Fees” for authorisation applicants (13 July 2026).
- FCA PS26/14, Regulated fees and levies 2026/27 (July 2026); FCA Handbook, FEES 4 Annex 11R (2 July 2026).
- FCA, Payment Services and Electronic Money: Our Approach, version 8, May 2026, paragraphs 3.4, 3.47 and 3.126.
- FCA PS25/12, Changes to the safeguarding regime for payments and e-money firms (7 August 2025).
- FCA instrument 2026/11; CP25/33; Handbook Notice 139.
- gov.uk, “Fees you’ll pay for money laundering supervision” (updated 22 December 2025).
- gov.uk, Companies House fees (updated 25 September 2026).
- ICO, “Changes to the data protection fee” (fees from 17 February 2025).
