Note H: Receivables and payables
This section contains the receivable and payable-related Notes to the consolidated balance sheet, such as contract balances, trade and other receivables and payables, any expected credit losses associated with these balances and any provision or contingent liabilities that the BBC may owe in the future. Also included are details on balances/transactions with related parties and any commitments the BBC is expecting to settle in future years.
Judgement – Expected credit losses
Judgement is required when determining the recoverability (likelihood of receiving payment) of a contract asset or trade and other receivables. Changes in the credit quality of the receivable together with future considerations around the current state of the UK and overseas economies and any industry-specific issues are all subjective.
Judgement – Provision
Judgements are employed in determining if a past event has given rise to a present obligation that will result in probable payment by the BBC that can be measured reliably.
Estimate – Provisions
Estimation techniques used to calculate the expected amount required to settle a provision can be very complex, especially when there is a wide range of possible outcomes.
Estimate – Rights creditors
Rights creditors arise from obligations to pay rights holders for the exploitation of content. These rights holders include; third party profit participants; contributors; talent unions and collecting societies. There is an element of the rights creditors which is subject to judgement where the information is not yet available to calculate the rate payable. In these cases, the rate is estimated based on the best information available.
Estimate – Work in progress accruals
Work in progress accruals arise where a performance obligation has been satisfied but all associated expenditure has yet to be incurred. Judgement is required in estimating the outstanding expenditure required to fulfil the contract.
H1 Trade and other receivables and contract assets
Trade and other receivables and contract assets exclude balances sold under non-recourse factoring arrangements (see note G5). Recognised initially at transaction price and subsequently at amounts considered recoverable (amortised cost). Estimates are used in determining the level of receivables that will not be collected. These estimates include factors such as historical experience, the current state of the UK and overseas economies and industry specifics. A provision for impairment of trade and other receivables and contract assets is recognised based on the simplified approach using the lifetime expected credit losses. During this process the probability of non-payment is assessed.
This probability is then multiplied by the amount of the expected loss arising from default to determine the lifetime expected credit loss for the trade and other receivables and contract assets. The most significant trade and other receivable is the licence fee receivable, which represents amounts due from the DCMS for licence fee payments not yet collected but due. The calculation of this balance carries a degree of estimation, however we do not believe that the estimation uncertainty/difference would be material to the accounts. Changes in the carrying amount of the allowance are recognised in the consolidated expenditure statement within total operating costs.
H1.1 Contract assets
| 56 | 21 |
|---|---|---|
| 2026 £m | 2025 £m | |
At 1 April | 21 | 19 |
Balance transferred to trade receivables | (46) | (14) |
New contract assets | 43 | 15 |
Increase as a result of changes in the measure of progress | 38 | 1 |
At 31 March | 56 | 21 |
Presented within: |
|
|
Current assets | 53 | 16 |
Non-current assets | 3 | 5 |
Contract assets (accrued income) primarily relate to the BBC’s right to consideration for work completed but not billed at the reporting date.
H1.2 Trade and other receivables due after more than one year
| 2026 £m | 2025 £m | |
|---|---|---|
Lease receivables | 203 | 217 |
Other receivables | - | 23 |
Total | 203 | 240 |
Current lease receivables of £7 million (2025: £5 million) were recognised within other receivables in note H1.3. Total lease receivables of £210 million (2025: £222 million) are analysed in more detail within note F4.
Lease receivables relate to a lease of land and buildings, expiring in 2035. The contract was entered into in 2015 with the BBC receiving fixed quarterly receipts, subject to inflation.
H1.3 Trade and other receivables due within one year
Total | 1,062 | 1,098 |
|---|---|---|
| 2026 £m | 2025 £m | |
Licence fee receivables | 481 | 484 |
Accrued income | 209 | 268 |
Trade receivables | 152 | 169 |
Prepayments | 70 | 64 |
VAT recoverable | 89 | 29 |
Amounts owed by associates and joint ventures | 1 | 1 |
Other receivables | 60 | 83 |
Licence fee payers can pay the annual licence fee in several different ways. This can therefore result in a licence fee receivable where individual payments run behind usage as well as a licence fee payable where individual payments are running ahead of usage at a given point in time.
Accrued income is recognised where the BBC has provided goods or services but not yet billed or collected payment thereon.
H1.4 Expected credit losses
In determining the recoverability of a contract asset or trade and other receivable the BBC considers any change in the credit quality of the receivable from the date credit was initially granted up to the reporting date, as well as future considerations around the current state of the UK and overseas economies and any industry-specific issues. Receivables are provided for based on the probability of expected credit losses for each receivable.
The Group uses an allowance matrix to measure the expected credit losses of trade receivables from individual customers. Loss rates are based on actual credit loss experiences which are adjusted to reflect differences between customer base during the period over which the historical data has been collected, as well as any forward-looking information regarding the company’s view of economic and industry-wide conditions over the expected lives of the receivables.
The Group has further reviewed the amounts provided against receivables for expected credit losses, taking into account the potential for increased losses due to uncertainty surrounding the economic recovery. In addition to revisiting historic loss rates, this review assessed if heightened sectoral exposure and uncertainty impacted certain segments of the receivables balances, resulting in a qualitative adjustment being required.
The licence fee grant income paid by DCMS is based on the recoverable value of TV licences issued in the year. The year-end licence fee receivables expected credit loss is estimated based on historic impairment rates, adjusted if necessary for any changes in future impairment expectations.
Credit risk metrics relate only to retained receivables.
Included in the BBC’s contract assets (see Note H1.1) and trade and other receivables at 31 March 2026 are balances of £25 million (2025: £37 million) which are past due at the reporting date, before impairment. The aged analysis is as shown below:
| 2026 £m | 2025 £m | |
|---|---|---|
Up to three months | 22 | 30 |
Three to six months | 3 | 5 |
Over six months | – | 2 |
Total | 25 | 37 |
Movements in the BBC’s provision for impairment of licence fee receivable, trade receivables and contract assets can be shown as follows:
| 2026 £m | 2025 £m | |
|---|---|---|
At 1 April | 39 | 41 |
Charge for the year | 5 | 6 |
Amounts written off as unrecoverable | (2) | (6) |
Amounts unutilised | (19) | – |
Amounts recovered during the year | (1) | (2) |
At 31 March | 22 | 39 |
Amounts charged to the impairment provision are written off when there is no expectation of recovery. Subsequent recoveries of amounts previously written off are credited to the consolidated expenditure statement.
H2 Trade and other payables and contract liabilities
📘 Trade and other payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.
📘 A contract liability is recognised when payment is received prior to the associated performance obligation being fulfilled. It is released to income when the performance obligation is satisfied.
📘 Accruals include work-in-progress accruals, which arise in instances where a performance obligation has been satisfied but all associated expenditure has not yet been invoiced. The basis of the calculation of such accruals is based upon forecast expenditure required to fulfil the contract.
H2.1 Contract liabilities
| 2026 £m | 2025 £m | |
|---|---|---|
At 1 April | (256) | (244) |
Income recognised in the period | 237 | 227 |
Cash received in advance and not recognised as income during the year | (140) | (239) |
At 31 March | (159) | (256) |
Presented within: |
|
|
Current liabilities | (151) | (243) |
Non-current liabilities | (8) | (13) |
Total | (159) | (256) |
Contract liabilities (deferred income) primarily relate to the consideration received from customers in advance of transferring a good or service.
H2.2 Trade and other payables due after more than one year
| 2026 £m | 2025 £m | |
|---|---|---|
Other payables | 66 | 65 |
Total | 66 | 65 |
H2.3 Trade and other payables due within one year
| 2026 £m | 2025 £m | |
|---|---|---|
Licence fee payable | 280 | 283 |
Accruals | 220 | 235 |
Trade payables | 332 | 325 |
Rights creditors | 152 | 154 |
Salaries and wages payables | 96 | 91 |
Licence savings stamp deposits and savings cards | 38 | 39 |
Other taxation and social security | 48 | 45 |
Deferred income | 24 | 13 |
Amounts owed to associates and joint ventures | 1 | 1 |
Other payables | 61 | 70 |
Total | 1,252 | 1,256 |
Licence fee payers can pay the annual licence fee in several different ways. This can therefore result in a licence fee receivable where individual payments run behind usage as well as a licence fee payable where individual payments are running ahead of usage at a given point in time.
Rights creditors refers to liabilities relating to the rights to broadcast programmes and are expensed in line with the expected transmission profile.
Licence savings stamp deposits and savings cards are made up of TV Licencing stamps which are slowly being refunded.
H3 Related party transactions
The following table represents transactions with related parties excluding key management personnel.
| 2026 | Joint ventures £m | Associates £m | BBC Pension Scheme £m | Total £m |
|---|---|---|---|---|
Receiving of services | (99) | – | – | (99) |
Pension contributions | – | – | (63) | (63) |
Total | (99) | – | (63) | (162) |
| 2025 | Joint ventures £m | Associates £m | BBC Pension Scheme £m | Total £m |
|---|---|---|---|---|
Rendering of services* | – | 18 | – | 18 |
Receiving of services | (83) | – | – | (83) |
Pension contributions | – | – | (116) | (116) |
Dividends received | – | 9 | – | 9 |
Total | (83) | 27 | (116) | (172) |
* Rendering of services does not include recharges of staff and other costs where the BBC acts as an agent.
The following table represents outstanding balances with related parties excluding key management personnel:
| Amounts owed by related parties 2026 £m | Amounts owed by related parties 2025 £m | Amounts owed to related parties 2026 £m | Amounts owed to related parties 2025 £m | |
|---|---|---|---|---|
BBC Pension Scheme | 1 | 1 | (1) | – |
Associates | 1 | 1 | (1) | (1) |
Total | 2 | 2 | (2) | (1) |
In all transactions, terms were negotiated on an arm’s length basis and expected to be settled in cash. Please see note H4 for support relating to Media Action.
The BBC also enters into various transactions with Government and local authorities on an arm’s length basis. These transactions include business rates and corporation tax payments.
At 31 March 2026, the BBC was owed £1.2 million (2025: £0.8 million) and due to pay £0.5 million (2025: £0.4 million) to the BBC Pension Scheme. These transactions are unsecured, interest free and repayable on demand unless otherwise agreed.
H4 Provisions and contingent liabilities
The BBC recognises a provision if a past event has given rise to a present obligation that will result in a probable payment that can be measured reliably. Where a provision is determined to be required and there are a range of possible outcomes, estimation techniques are used to calculate the best estimate of the amount required to settle the obligation.
The BBC recognises decommissioning liabilities as part of the initial cost of the asset, discounted to present value. The BBC reassesses whether there has been a change in this liability based on the facts and circumstances at each balance sheet date.
| At 1 April 2025 £m | Charge for the year £m | Utilised during the year £m | Released during the year £m | At 31 March 2026 £m | |
|---|---|---|---|---|---|
Property | 93 | 1 | – | (9) | 85 |
Taxation, litigation and insurance | 43 | 13 | (4) | (1) | 51 |
Restructuring | 55 | 33 | (51) | (9) | 28 |
Other | 8 | 3 | (2) | – | 9 |
| 199 | 50 | (57) | (19) | 173 |
Included in current liabilities | 79 |
|
|
| 66 |
Included in non-current liabilities | 120 |
|
|
| 107 |
| 199 |
|
|
| 173 |
Property
The BBC has obligations to restore leased properties to their original condition at the end of the lease term. Property provisions are made for the cost of such restoration works based upon the expected amount required to fulfil the obligation at the year-end date, building over the lease term.
Taxation, litigation and insurance
Taxation, litigation and insurance provisions relate to ongoing legal, insurance and compensation claims against the BBC. The BBC makes specific provision for its best estimate of any damages and costs which may be awarded. A provision is only made to the extent that the BBC considers it probable that there will be an outflow of economic benefits and the amount can be reliably estimated. The timing and value of cash flows associated with these provisions can sometimes be uncertain where we are awaiting the outcome of HMRC reviews.
There are a number of provisions within this balance, including balances connected to payments to Personal Service Companies that may be required. The BBC tax teams continues to work proactively to identify any areas of non-compliance and remediate across all taxes in the UK and Internationally. Accordingly provisions are recognised at the appropriate time.
Restructuring
Restructuring provisions are determined by the probable costs relating to reorganisations, relocations and redundancies in the BBC. The balance predominantly relates to redundancies and is calculated based upon known circumstances where possible or estimated using average salaries where individuals are unknown.
Other
Other provisions include amounts relating to employment matters and other issues arising across the BBC in the normal course of business, none of which are individually material.
Contingent liabilities
Contingent liabilities are liabilities that may occur depending on the outcome of an uncertain future event such as the outcome of a pending lawsuit. Contingent liabilities are not accounted for in the financial statements because, unlike provisions, they are not sufficiently certain or cannot be estimated reliably.
Trump US legal claim
In December 2025, President Donald J Trump filed a lawsuit in the United States District Court, Southern District of Florida against (1) the BBC, (2) BBC Studios Distribution Limited, and (3) BBC Studios Productions Limited in respect of an episode of Panorama broadcast on BBC One, BBC Two and BBC iPlayer in October 2024. The claim brings two causes of action: (1) defamation; and (2) violation of the Florida Deceptive and Unfair Trade Practices Act. The claim document states that up to USD $5 billion is claimed for each cause of action.
In mid-March 2026, the BBC Defendants filed with the Florida court a motion to dismiss the claim, which includes a challenge to the jurisdiction of the Court. No provision has been made for this at 31 March 2026. Any further disclosure in line with IAS 37 could be seriously prejudicial to the BBC’s legal case. If the claim proceeds, a date for trial has been set for February 2027.
Pension scheme deficit recovery payments
The BBC has agreed to pay £125 million into the BBC’s defined benefit pension scheme at the earlier of 1 July 2027 and the date on which the 2026 valuation is completed, unless a replacement Schedule of Contributions has been put in place that does not require it. It is not currently possible to determine the likelihood of this payment at present.
Indian tax survey
The Indian Income Tax Department conducted tax surveys at the offices of BBC Global News India Private Limited, BBC Global News Limited, BBC World Service India Private Limited and BBC Studios India Private Limited in February 2023. The BBC has co-operated in full, and will continue to do so, with all requests made to it, including document and information requests, supported by its external legal and tax advisers.
Certain matters arising from the surveys are ongoing. In respect of matters yet to conclude it is not possible at this stage to identify if a liability exists and/or to quantify any such liability with reasonable certainty.
Media Action
BBC Media Action is the BBC’s International charity (a private company limited by guarantee and a registered charity) that operates independently of the BBC, with a management team that is answerable to a board of directors (more commonly referred to as Trustees). The BBC provides services to the charity, as it does to BBC Children in Need, including the use of property space. UK-based Media Action staff are employed by the BBC and recharged to Media Action.
Given the continued challenging external context (including continued cuts to US and UK aid budgets) and the environments in which Media Action operates, their income projections to return to pre-Covid-19 levels continue to be slower than anticipated. Media Action’s Trustees have developed an ambitious operational plan to allow the charity to return to a sustainable position within the context of the new global funding challenges in their sector.
In October 2025 the BBC renewed a 12-month written assurance of support (due for review in October 2026) whilst the operational plan is delivered. In the year BBC paid £1.6 million and committed up to £1.9 million to 2027 to fund new fund-raising teams and overheads whilst they make the changes needed to create a sustainable charity. In year we have also paid £0.2 million for redundancy payments for BBC staff working for Media Action. No further possible outflow as a result of this assurance of support can be estimated at this time.
Review of other overseas operations
We continuously monitor operations in our overseas news bureaux to assure ourselves of our compliance with local laws and regulations. Remediation work is ongoing and associated costs expensed as incurred. Any past events that could lead to possible outflows that cannot currently be estimated due to uncertainty and events outside our control are considered to be contingent liabilities. Where cash outflows are considered probable and amounts are quantifiable with reasonable certainty a provision will be booked.
Litigation claims
The BBC has a number of smaller contingent liabilities in respect of ongoing litigation claims which are not recognised within provisions. None of these items are expected to have a material effect on the BBC’s results or financial position. The BBC holds a number of insurance policies for legal claims and subject to the terms and conditions of those policies may therefore receive reimbursement against some future outflows.
H5 Long-term commitments not reflected in the balance sheet – contracts placed for future expenditure
This note shows amounts to which the BBC is contractually committed, but which do not meet the criteria for inclusion in the balance sheet as the goods/services are yet to be received. It includes fixed (but not variable) payments due under outsourcing contracts for the life of those contracts. For the purposes of simplification, a contract threshold of £250,000 has been applied this year. This has not resulted in a material impact on the reported results.
Functions covered by these long-term outsourcing contracts include IT support, content distribution and transmission, facilities management and elements of finance support.
| 2026 £m | 2025* £m | |
|---|---|---|
Fixed asset additions | 63 | 34 |
Programme acquisitions, independent programmes and sports rights | 1,520 | 1,824 |
Transmission, distribution and main outsourced contracts | 1,199 | 1,418 |
Total | 2,782 | 3,276 |
* The categories’ long-term commitments have been updated in year to provide more clarity to the readers of the accounts. The comparatives have therefore been restated to reflect this new presentation.
Long-term commitments not reflected in the balance sheet are payable as follows:
| 2026 £m | 2025 £m | |
|---|---|---|
Within one year | 1,189 | 1,251 |
Between one and five years | 1,538 | 1,856 |
Over five years | 55 | 169 |
Total | 2,782 | 3,276 |
