The government has set out who will pay Ofcom’s Online Safety fees and when. In a letter dated 18 November 2025 and published on 20 November, DSIT Secretary of State Liz Kendall confirmed a £250 million Qualifying Worldwide Revenue (QWR) threshold for bringing providers into the fee regime, alongside an exemption for services with less than £10 million in UK‑referable revenue. She also said she will lay a Statutory Instrument to put the threshold into law, with 2026/27 targeted as the first charging year. The letter was addressed to Ofcom chief executive Dame Melanie Dawes.

Why it matters for operators and investors is straightforward: the Online Safety Act requires industry to fund Ofcom’s running costs for the regime. DSIT’s published guidance says companies at or above the threshold must notify Ofcom and pay an annual fee unless exempt, while those below the threshold pay nothing. Government will cap Ofcom’s budget and, from 2027/28, levy additional fees over several years to recover set‑up costs. The regulator expects to invoice from the 2026/27 financial year.

How the thresholds bite is now clear. If your QWR is below £250 million, you fall outside the fee regime and do not need to notify Ofcom. If your QWR is at or above £250 million, you enter the regime but will not pay a fee if your UK‑referable revenue is under £10 million. DSIT’s guidance adds that being below the threshold does not remove a firm’s underlying Online Safety duties; those apply regardless of fee status. The direction of travel is to shield smaller services from fee burdens without weakening safety obligations.

The mechanics matter for finance teams. Ofcom’s QWR Regulations define QWR as revenue referable to the regulated parts of a service anywhere in the world, including advertising and the sale of goods or services, and require ‘just and reasonable’ apportionment where revenues are mixed. The regime also looks through to group undertakings when revenue is earned within a group. Crucially, the qualifying period for a charging year is the second calendar year before it begins; for 2026/27 that means calendar year 2024. A charging year runs from 1 April to 31 March.

Timelines are tight but manageable. Ofcom’s roadmap signals the fees regime should come into force shortly, subject to Parliament. Once the threshold regulations are in force, relevant providers will have a four‑month notification window to submit revenue data for the first charging year. Ofcom’s fees and penalties statement outlines how this notification process will work and the documents providers should prepare. Teams should assume submissions will be needed promptly after the SI takes effect.

For SMEs and new entrants, the government has aimed to keep barriers low. The approved exemption for providers with under £10 million in UK‑referable revenue is designed to allow firms to build a UK presence before fees kick in. A practical example: a global app with £300 million in QWR but £8 million from UK users would be in scope of the regime but exempt from paying a fee while UK revenue remains below £10 million. The policy intent, as set out in Kendall’s letter, is to support market entry without sacrificing safety standards.

Sector nuances could follow. Kendall welcomed Ofcom’s plan to examine evidence for further exemptions where risk is lower, citing vertical search as a possible candidate. Nothing changes today for those sectors, but firms in specialised niches should watch for targeted adjustments as the regime beds in. Any wider carve‑outs would arrive after Ofcom’s review and consultation work.

Documentation and controls will matter as much as the top‑line numbers. The Fees Notification Regulations, in force since 14 September 2025, set what providers must supply and point to Ofcom’s ‘manner of notification’ document published on 26 June 2025. Revenue mapping across product lines, group consolidation, and currency conversion procedures should be ready ahead of the four‑month window. Where revenue is partly linked to regulated features, apportionment must be ‘just and reasonable’.

Budgeting for the medium term is sensible. DSIT’s guidance requires Ofcom’s fees to match, not exceed, its annual online safety costs, with a government‑set budget cap providing oversight. Additional fees to recover Ofcom’s initial costs will be charged over a set number of years from 2027/28. For larger platforms, this is a predictable, recurring line‑item; for finance directors, it is worth stress‑testing scenarios where UK revenue grows past £10 million, triggering fee liability.

Two final watch points. First, enforcement under the Act remains severe: penalties can reach the higher of £18 million or 10% of qualifying worldwide revenue for the most recent complete accounting period. Second, the threshold figure can be revised; the Secretary of State must keep it under review, and Kendall says she will do so after the initial charging year. Firms should plan for consultation‑led adjustments as data accumulates.