The Secretary of State has signed the Online Safety Act 2023 (Fees) (Threshold Figure) Regulations 2025, setting the threshold figure at £250 million. The instrument comes into force on 11 December 2025 and applies from the charging year that begins on 1 April 2026. In a letter published by the Department for Science, Innovation and Technology (DSIT), government confirmed that 2026/27 will be the first charging year for the fees regime, following Ofcom’s advice under section 86 of the Act.
Who is in scope is defined by statute. A provider enters a “fee‑paying year” if its qualifying worldwide revenue (QWR) for the qualifying period meets or exceeds the threshold figure and the provider is not exempt. The qualifying period is the second calendar year before the calendar year in which the charging year begins. For the 2026/27 charging year, that means QWR from 1 January to 31 December 2024.
There are two linked duties. First, providers must notify Ofcom. For the initial charging year, notification must be submitted within four months of these threshold regulations coming into force-by 11 April 2026. For later years, notification is due at least six months before the start of the relevant charging year. Notifications must cover all regulated services and, where applicable, include QWR figures and supporting evidence.
Second, Ofcom may require payment of an annual fee for each fee‑paying year. The amount is determined by reference to the provider’s QWR for the relevant qualifying period and any other factors Ofcom considers appropriate, in line with a published Statement of Charging Principles. Ofcom issued its policy statement on the fees and penalties regime on 26 June 2025 and will finalise charging principles ahead of billing for 2026/27.
How QWR is calculated is set out in the Online Safety Act 2023 (Qualifying Worldwide Revenue) Regulations 2025 (SI 2025/1032). QWR is the total revenue a provider (and, where relevant, group undertakings) receives during the qualifying period that is referable to the regulated service. Revenue arising partly from the service and partly from other activities must be apportioned on a “just and reasonable” basis; this expressly includes advertising and the supply of goods or services. Currency conversions must use a just and reasonable exchange rate.
Exemptions sit with Ofcom but require Secretary of State approval. DSIT has confirmed approval of Ofcom’s proposed exemption for providers whose UK‑referable revenue is under £10 million; those providers will not pay the fee even if their QWR meets the £250 million threshold. Ofcom will publish details of approved exemptions.
“Charging year” is defined in the Act as any 12‑month period starting on 1 April. The “initial charging year” is the period specified by Ofcom in a notice; government has indicated this will be 2026/27. This timing satisfies section 86, which requires the threshold to take effect from the beginning of a particular charging year and to be kept under review.
What providers should do now is procedural rather than speculative. Firms should determine whether their 2024 revenue meets the QWR test, assess whether the UK‑referable revenue exemption applies, and prepare the documentation required for notification, including the basis for any apportionment used in QWR calculations. The Fees Notification Regulations (SI 2025/747) require information to be supplied in the manner set out in Ofcom’s “Manner of Notification” document of 26 June 2025.
Once notifications are received, Ofcom will calculate fees to recover the costs of exercising its online safety functions and will carry forward deficits or surpluses between years, as provided for in Part 6 of the Act. DSIT’s guidance confirms government oversight of regulatory costs and a cap on Ofcom’s total budget for this regime. Providers above the threshold should therefore plan for annual charges aligned to the Statement of Charging Principles.