Must-Know Tips to Save on the £174.50 Fee
“You don’t need a TV licence just because you own a television – it all depends on how you use it.”
— TV Licensing guidelines
Disclaimer
This article is for informational purposes only and does not constitute legal advice. Please consult TV Licensing or legal professionals regarding your specific circumstances.
What Is a TV Licence and Who Needs One?
As of 1 April 2025, a standard colour TV licence in the UK costs £174.50 annually – an increase of £5 from the previous year. The licence is legally required if you:
- Watch or record live TV as it is broadcast.
- Stream or download content on BBC iPlayer.
“Whether it’s a smartphone, tablet, smart TV or games console – watching or recording live TV requires a licence.”
— TV Licensing
You do not need a licence if you exclusively watch on-demand content from other services such as ITVX, Channel 4, or My5, as long as you don’t watch anything live or use BBC iPlayer.
✅ You DO need a licence if you:
- Watch or record TV programmes live on any channel or platform.
- Use BBC iPlayer for live or catch-up content.
- Stream live content on services like YouTube, ITVX, or Now * TV.
❌ You DON’T need a licence if you:
- Only watch on-demand shows from non-BBC providers.
- Never watch or record live TV.
- Don’t use BBC iPlayer.
For the official definition of “live TV” and further clarifications, see the TV Licensing website.
Where Does Your Licence Fee Go?
According to the BBC, licence fee income makes up around 71% of its funding. Here’s how it’s allocated:
| Category | % of Budget |
|---|---|
| Television programming | 55% |
| Radio services | 16% |
| BBC Online | 10% |
| BBC World Service | 10% |
| Other services and production | 5% |
| Licence collection/admin | 4% |
Source: BBC – What does the licence fee pay for?
Catch-Up Only? Here’s How to Legally Avoid Paying
“If you don’t watch the BBC or live TV, you can legally ditch the licence and save £174.50.”
— Martin Lewis, MoneySavingExpert
If you exclusively use non-BBC on-demand platforms (like ITVX or All 4) and never watch live content, you don't need a TV licence.
However, BBC iPlayer usage – even for catch-up – does require a licence. This rule has been in effect since September 2016.
According to TV Licensing, fewer than 2% of UK households only use catch-up, so be confident before cancelling.
How to Cancel Your Licence (Legally)
- Cancel your licence and apply for a refund:
Use the TV Licensing cancellation form or call:- Payment card users: 0300 555 0286
- Direct Debit users: 0300 790 0368
- Submit a ‘No Licence Needed' declaration:
File this even if you pay in cash or aren’t eligible for a refund. Keep your confirmation as proof. - Expect a possible inspection:
TV Licensing may send officers to verify your claim. Roughly 1 in 5 visits result in identifying unlicensed viewing.
Common Questions
Will TV Licensing check if I’m watching live TV?
Yes. TV Licensing may send enquiry officers, or use detection equipment. BBC iPlayer also prompts users to confirm they’re covered by a licence.
Can they enter my home?
No, not without a warrant from a magistrate. You can legally deny entry.
“Enquiry officers have no automatic right to enter your property.”
— Citizens Advice
What about smart TVs?
You don’t need a licence if you only use it for non-BBC catch-up. However, if it’s connected to an aerial or satellite dish, you could be at risk of investigation.
Recording Live TV? That Still Needs a Licence
Even if you plan to watch it later, recording live programmes via devices like Sky * Q, Virgin TV 360, or even VHS still requires a valid licence.
Watching Netflix or Amazon Prime? No Licence Needed – Mostly
You don’t need a licence to watch:
- Netflix *
- Disney *+
- Amazon Prime * Video (unless watching live sports or channels)
- YouTube (on-demand content only)
Live streaming from these platforms, however, does require a licence.
Penalties for Watching Without a Licence
Watching or recording live TV, or using BBC iPlayer without a licence, is a criminal offence. You can face:
- A £1,000 fine in England, Wales, and Northern Ireland.
- A £2,000 fine in Guernsey.
Imprisonment is only possible for non-payment of a fine, not for licence evasion itself.
Got a TV But Don’t Watch It? No Problem
Ownership of a television or TV-capable device does not mean you need a licence. If you don’t use it to watch live TV or iPlayer, no fee is required.
Colour vs Black and White Licence Costs
- Colour: £174.50
- Black and white: £58.50
(Yes, 3,600 UK households still use black-and-white sets as of March 2024.)
Special Rules for Students
“Students can legally watch live TV without a licence – if they stick to battery-powered devices.”
— TV Licensing student guide (p.3)
To avoid paying:
- Parents must have a licence.
- Device must be battery-powered (e.g. laptop or phone).
- It must not be plugged in during viewing.
⚠️ This rule only applies if you're not using the device while charging or connected to an aerial.
Refunds and Discounts – Are You Eligible?
You may be eligible for a refund if:
- You’re moving abroad or into a care home.
- You no longer watch live TV/iPlayer.
- You're over 75 and receive Pension Credit.
- You paid for overlapping licences or changed to black and white.
Apply online within 2 years of your licence’s expiry.
Discounted Licences:
- Over 75s on Pension Credit: Free
- Blind/severely sight-impaired: 50% off
- Residents in care homes/sheltered housing: £7.50 via ARC licence
Money-Saving Payment Tips
- ❌ Avoid quarterly Direct Debit – costs £5 more annually.
- ✅ Use a cashback card for one-off payments.
- ✅ Use TV Licensing’s payment card for flexible cash payments.
“Buy at the beginning of the month to get maximum value – your licence expires at the end of the previous month next * year.”
— TV Licensing policy
Final Word
The TV licence rules can be confusing, but with a bit of know-how, you can make sure you're only paying if you really need to. Always check your current usage habits and consider if you're eligible for discounts or refunds.
For full details, visit the official TV Licensing website.
