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UK fixed overheads requirement calculator

One quarter of relevant expenditure, as in the EU — but the deduction list is not the same one. MIFIDPRU adds an 80% deduction the IFR has no equivalent for, and it makes material changes asymmetric: an increase applies immediately, a decrease needs the FCA’s permission first.

MIFIDPRU 4.5 · 14 deduction lines · 80% own-account rule · working shown · nothing stored

The other regime

The EU deduction list comes from RTS (EU) 2022/1455 and carries no 80% own-account rule. EU fixed overheads →

Calculate your fixed overheads requirement

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Use your most recent audited annual financial statements, or unaudited where audited are not available — and remember you must redo this once audited figures arrive. Figures are before distribution of profits. Leave any deduction blank if it does not apply.

Period covered by the financial statements Where the statements do not cover 12 months, MIFIDPRU 4.5.2R(3) requires dividing by the months covered and multiplying by 12.

Total expenditure before distribution of profits From the accounting framework applied under MIFIDPRU 4.5.2R.

Fixed expenses incurred on your behalf by a third party Including by a tied agent. Only where not already in the figures above. Use the third party’s breakdown where available, otherwise your business plan projection, otherwise a reasonable estimate.

Projected relevant expenditure for the current year — optional Used only to test the material change rules in MIFIDPRU 4.5.7R and 4.5.9R.

Deductions

MIFIDPRU 4.5.3R(2) and 4.5.5R · amounts in pounds sterling

Staff bonuses and other variable remuneration MIFIDPRU 4.5.3R(2)(a)(i) Deductible only if fully discretionary.

Employees’, directors’, partners’ and LLP members’ shares in profits MIFIDPRU 4.5.3R(2)(a)(ii) Deductible only if fully discretionary.

Other appropriations of profits MIFIDPRU 4.5.3R(2)(a)(iii) Deductible only if fully discretionary.

Shared commission and fees payable MIFIDPRU 4.5.3R(2)(b) All three conditions must hold: directly related to commission and fees receivable, those receivables are in total revenue, and payment is contingent on receiving them.

Fees paid to tied agents MIFIDPRU 4.5.3R(2)(c)

Non-recurring expenses from non-ordinary activities MIFIDPRU 4.5.3R(2)(d)

CCP, exchange and broker charges passed on to customers MIFIDPRU 4.5.3R(2)(e) Fees, brokerage and other charges for executing, registering and clearing transactions, provided they are directly passed on and charged to customers. Membership fees and loss-sharing obligations cannot be deducted.

CCP and broker charges on own-account dealing — 80% only MIFIDPRU 4.5.3R(2)(f) A UK-only deduction with no EU equivalent. Only 80% of the value is deductible, and only where not already deducted above. Enter the gross figure — the tool applies the 80%.

Interest paid to customers on client money MIFIDPRU 4.5.3R(2)(g) Only where there is no obligation of any kind to pay it.

Taxes falling due on the annual profits of the firm MIFIDPRU 4.5.3R(2)(h)

Losses from trading on own account in financial instruments MIFIDPRU 4.5.3R(2)(i)

Contract-based profit and loss transfer agreements MIFIDPRU 4.5.3R(2)(j) Where the firm is obliged to transfer its annual profit to the parent after the financial statements are prepared.

Expenses already reflected in a deduction from own funds MIFIDPRU 4.5.3R(2)(l) To the extent their value has already been deducted under MIFIDPRU 3.

Expenditure on raw materials MIFIDPRU 4.5.5R Commodity and emission allowance dealers only, in connection with the underlying commodity of the derivatives traded.

What this means: an indicative figure based only on what you entered. Several deductions turn on conditions that depend on your contracts and accounting treatment — whether remuneration is fully discretionary, whether charges are genuinely passed on to customers, whether an expense is non-recurring and outside ordinary activity. The FOR also drives your basic liquid assets requirement under MIFIDPRU 6, so an error here propagates. This is not advice.

The FOR feeds your own funds requirement, your liquid assets requirement and your ICARA. The prudential module keeps all of them current and produces the MIF returns — with free capital monitoring to start.

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UK versus EU

Three ways MIFIDPRU is not the IFR

The headline calculation matches. What sits underneath it does not.

80%

Own-account clearing charges

MIFIDPRU 4.5.3R(2)(f) allows a deduction for CCP, exchange and broker charges on transactions where the firm is dealing on own account — but only 80% of the value, and only where not already deducted as charges passed on to customers. The IFR has no equivalent.

Asymmetric

Material change

A projected increase of 30% or more, or of £2 million or more in the FOR itself, must be applied immediately. A decrease of the same size may only be applied with prior FCA permission under MIFIDPRU 4 Annex 11R.

No banking fund

A shorter list

The UK list omits payments into a fund for general banking risk, which the IFR allows, and the former item (k) has been deleted. Reusing an EU deduction schedule will overstate what you can take.

Rules reviewed 21 August 2026 · MIFIDPRU 4.5, last updated 1 April 2026 · MIFIDPRU 4.5.3R, 4.5.4R, 4.5.5R, 4.5.6R, 4.5.7R, 4.5.9R and 4.5.11R

Scope

What this calculator does

It doesApply the MIFIDPRU methodology

Takes one quarter of relevant expenditure under MIFIDPRU 4.5.1R.
Adds third-party expenses incurred on your behalf, as 4.5.6R requires.
Annualises where the statements cover fewer than 12 months.
Applies the 80% restriction to own-account clearing charges automatically.
Tests both material change rules and distinguishes the increase from the decrease.
Derives the basic liquid assets requirement, which is calibrated off the FOR.

It does notJudge the conditions

Decide whether remuneration is fully discretionary.
Determine whether charges are genuinely passed on and charged to customers.
Separate membership fees and loss-sharing obligations, which 4.5.4R excludes from deduction.
Handle firms in business for under a year, which use authorisation projections under 4.5.11R.
Assess the ICARA consequences that MIFIDPRU 4.5.8G expects you to consider.
Produce anything you can file.

Running the EU regime too?

The IFR deduction list is longer and the material change test is measured differently. They are not interchangeable.

EU FOR calculator →

Nothing you type here leaves your browser

The calculation runs entirely in your own browser. No figure you enter is sent to REGREP, written to a log, saved, or passed to any analytics tool.

Questions

About the UK fixed overheads requirement

Which figures do I use?

Those in your most recent audited annual financial statements, or unaudited statements where audited ones are not available. If you used unaudited figures and audited statements subsequently become available, you must update the calculation using the audited figures. Where the statements cover fewer than twelve months, divide by the months covered and multiply by twelve.

What is the 80% deduction?

MIFIDPRU 4.5.3R(2)(f) permits deduction of 80% of fees, brokerage and other charges paid to central counterparties, exchanges, other trading venues and intermediate brokers for executing, registering and clearing transactions where the firm is dealing on own account, to the extent not already deducted under (2)(e). It has no equivalent in the IFR, so a firm reusing an EU schedule will miss it.

Can I deduct exchange membership fees?

No. MIFIDPRU 4.5.4R specifically excludes fees and other charges necessary to maintain membership of, or otherwise meet loss-sharing financial obligations to, central counterparties, exchanges and other trading venues from the deductions in (2)(e) and (2)(f).

Do I have to add expenses paid by a third party?

Yes, unless they are already included in your figures. Where a breakdown of the third party’s expenses is available, add your share. Where it is not, use the share projected in your business plan, or failing that a reasonable estimate.

What happens if my costs change materially during the year?

The two directions are treated very differently. An increase of 30% or more in projected relevant expenditure, or of £2 million or more in the FOR, requires you to recalculate immediately, substitute the revised figure, and recalculate your basic liquid assets requirement. A decrease of the same magnitude may only be applied if you first obtain FCA permission using the form in MIFIDPRU 4 Annex 11R.

We have been authorised less than a year. What do we use?

Under MIFIDPRU 4.5.11R, the relevant expenditure included in the projections for your first twelve months’ trading, as submitted in your application for authorisation.

Do you store the figures I enter?

No. Everything is calculated in your browser and discarded when you close or reload the page.

An increase applies immediately. A decrease needs permission.

Create a free account and monitor the requirement continuously, so a material change is something you plan rather than discover.

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