diff --git a/app/config.py b/app/config.py
index 645f0042f..2cd1bc3fb 100644
--- a/app/config.py
+++ b/app/config.py
@@ -36,6 +36,11 @@ class Config(object):
     ASSETS_DEBUG = False
     AWS_REGION = 'eu-west-1'
     DEFAULT_SERVICE_LIMIT = 50
+    DEFAULT_FREE_SMS_FRAGMENT_LIMITS = {
+        'central': 250000,
+        'local': 25000,
+        'nhs': 25000,
+    }
     EMAIL_EXPIRY_SECONDS = 3600 * 24 * 7  # one week
     HEADER_COLOUR = '#FFBF47'  # $yellow
     HTTP_PROTOCOL = 'http'
diff --git a/app/main/forms.py b/app/main/forms.py
index cf899cc4f..b6a5aaf38 100644
--- a/app/main/forms.py
+++ b/app/main/forms.py
@@ -141,6 +141,18 @@ def sms_code():
                                           message='Code not found')])
 
 
+def organisation_type():
+    return RadioField(
+        'Who runs this service?',
+        choices=[
+            ('central', 'Central government'),
+            ('local', 'Local government'),
+            ('nhs', 'NHS'),
+        ],
+        validators=[DataRequired()],
+    )
+
+
 class LoginForm(Form):
     email_address = StringField('Email address', validators=[
         Length(min=5, max=255),
@@ -213,10 +225,7 @@ class TextNotReceivedForm(Form):
     mobile_number = international_phone_number()
 
 
-class ServiceNameForm(Form):
-    def __init__(self, *args, **kwargs):
-        super(ServiceNameForm, self).__init__(*args, **kwargs)
-
+class RenameServiceForm(Form):
     name = StringField(
         u'Service name',
         validators=[
@@ -224,6 +233,28 @@ class ServiceNameForm(Form):
         ])
 
 
+class CreateServiceForm(Form):
+    name = StringField(
+        u'What’s your service called?',
+        validators=[
+            DataRequired(message='Can’t be empty')
+        ])
+    organisation_type = organisation_type()
+
+
+class OrganisationTypeForm(Form):
+    organisation_type = organisation_type()
+
+
+class FreeSMSAllowance(Form):
+    free_sms_allowance = IntegerField(
+        'Numbers of text message fragments per year',
+        validators=[
+            DataRequired(message='Can’t be empty')
+        ]
+    )
+
+
 class ConfirmPasswordForm(Form):
     def __init__(self, validate_password_func, *args, **kwargs):
         self.validate_password_func = validate_password_func
diff --git a/app/main/views/add_service.py b/app/main/views/add_service.py
index 9b7d5b9fd..a6779fc38 100644
--- a/app/main/views/add_service.py
+++ b/app/main/views/add_service.py
@@ -14,7 +14,7 @@ from notifications_python_client.errors import HTTPError
 from werkzeug.exceptions import abort
 
 from app.main import main
-from app.main.forms import ServiceNameForm
+from app.main.forms import CreateServiceForm
 from app.notify_client.models import InvitedUser
 
 from app import (
@@ -39,13 +39,17 @@ def _add_invited_user_to_service(invited_user):
     return service_id
 
 
-def _create_service(service_name, email_from, form):
+def _create_service(service_name, organisation_type, email_from, form):
     try:
-        service_id = service_api_client.create_service(service_name=service_name,
-                                                       message_limit=current_app.config['DEFAULT_SERVICE_LIMIT'],
-                                                       restricted=True,
-                                                       user_id=session['user_id'],
-                                                       email_from=email_from)
+        service_id = service_api_client.create_service(
+            service_name=service_name,
+            organisation_type=organisation_type,
+            message_limit=current_app.config['DEFAULT_SERVICE_LIMIT'],
+            free_sms_fragment_limit=current_app.config['DEFAULT_FREE_SMS_FRAGMENT_LIMITS'].get(organisation_type),
+            restricted=True,
+            user_id=session['user_id'],
+            email_from=email_from,
+        )
         session['service_id'] = service_id
         return service_id, None
     except HTTPError as e:
@@ -78,14 +82,14 @@ def add_service():
     if not is_gov_user(current_user.email_address):
         abort(403)
 
-    form = ServiceNameForm()
-    heading = 'Which service do you want to set up notifications for?'
+    form = CreateServiceForm()
+    heading = 'About your service'
 
     if form.validate_on_submit():
         email_from = email_safe(form.name.data)
         service_name = form.name.data
 
-        service_id, error = _create_service(service_name, email_from, form)
+        service_id, error = _create_service(service_name, form.organisation_type.data, email_from, form)
         if error:
             return render_template('views/add-service.html', form=form, heading=heading)
         if len(service_api_client.get_active_services({'user_id': session['user_id']}).get('data', [])) > 1:
diff --git a/app/main/views/service_settings.py b/app/main/views/service_settings.py
index 7356f5c53..1dbe5ba0f 100644
--- a/app/main/views/service_settings.py
+++ b/app/main/views/service_settings.py
@@ -25,7 +25,7 @@ from app.main import main
 from app.utils import user_has_permissions, email_safe, get_cdn_domain
 from app.main.forms import (
     ConfirmPasswordForm,
-    ServiceNameForm,
+    RenameServiceForm,
     RequestToGoLiveForm,
     ServiceReplyToEmailForm,
     ServiceSmsSender,
@@ -34,6 +34,8 @@ from app.main.forms import (
     LetterBranding,
     ServiceInboundApiForm,
     InternationalSMSForm,
+    OrganisationTypeForm,
+    FreeSMSAllowance,
 )
 from app import user_api_client, current_service, organisations_client, inbound_number_client
 from notifications_utils.formatters import formatted_list
@@ -73,12 +75,12 @@ def service_settings(service_id):
     reply_to_email_addresses = service_api_client.get_reply_to_email_addresses(service_id)
     reply_to_email_address_count = len(reply_to_email_addresses)
     default_reply_to_email_address = next(
-        (x['email_address'] for x in reply_to_email_addresses if x['is_default']), "None"
+        (x['email_address'] for x in reply_to_email_addresses if x['is_default']), "Not set"
     )
     letter_contact_details = service_api_client.get_letter_contacts(service_id)
     letter_contact_details_count = len(letter_contact_details)
     default_letter_contact_block = next(
-        (Field(x['contact_block'], html='escape') for x in letter_contact_details if x['is_default']), "None"
+        (Field(x['contact_block'], html='escape') for x in letter_contact_details if x['is_default']), "Not set"
     )
     return render_template(
         'views/service-settings.html',
@@ -100,7 +102,7 @@ def service_settings(service_id):
 @login_required
 @user_has_permissions('manage_settings', admin_override=True)
 def service_name_change(service_id):
-    form = ServiceNameForm()
+    form = RenameServiceForm()
 
     if request.method == 'GET':
         form.name.data = current_service.get('name')
@@ -574,6 +576,46 @@ def service_set_letter_contact_block(service_id):
     )
 
 
+@main.route("/services/<service_id>/service-settings/set-organisation-type", methods=['GET', 'POST'])
+@login_required
+@user_has_permissions(admin_override=True)
+def set_organisation_type(service_id):
+
+    form = OrganisationTypeForm(organisation_type=current_service.get('organisation_type'))
+
+    if form.validate_on_submit():
+        service_api_client.update_service(
+            service_id,
+            organisation_type=form.organisation_type.data,
+        )
+        return redirect(url_for('.service_settings', service_id=service_id))
+
+    return render_template(
+        'views/service-settings/set-organisation-type.html',
+        form=form,
+    )
+
+
+@main.route("/services/<service_id>/service-settings/set-free-sms-allowance", methods=['GET', 'POST'])
+@login_required
+@user_has_permissions(admin_override=True)
+def set_free_sms_allowance(service_id):
+
+    form = FreeSMSAllowance(free_sms_allowance=current_service['free_sms_fragment_limit'])
+
+    if form.validate_on_submit():
+        service_api_client.update_service(
+            service_id,
+            free_sms_fragment_limit=form.free_sms_allowance.data,
+        )
+        return redirect(url_for('.service_settings', service_id=service_id))
+
+    return render_template(
+        'views/service-settings/set-free-sms-allowance.html',
+        form=form,
+    )
+
+
 @main.route("/services/<service_id>/service-settings/set-branding-and-org", methods=['GET', 'POST'])
 @login_required
 @user_has_permissions(admin_override=True)
diff --git a/app/notify_client/service_api_client.py b/app/notify_client/service_api_client.py
index 3908a457c..7713ccb00 100644
--- a/app/notify_client/service_api_client.py
+++ b/app/notify_client/service_api_client.py
@@ -16,12 +16,23 @@ class ServiceAPIClient(NotifyAdminAPIClient):
         self.service_id = application.config['ADMIN_CLIENT_USER_NAME']
         self.api_key = application.config['ADMIN_CLIENT_SECRET']
 
-    def create_service(self, service_name, message_limit, restricted, user_id, email_from):
+    def create_service(
+        self,
+        service_name,
+        organisation_type,
+        free_sms_fragment_limit,
+        message_limit,
+        restricted,
+        user_id,
+        email_from,
+    ):
         """
         Create a service and return the json.
         """
         data = {
             "name": service_name,
+            "organisation_type": organisation_type,
+            "free_sms_fragment_limit": free_sms_fragment_limit,
             "active": True,
             "message_limit": message_limit,
             "user_id": user_id,
@@ -93,7 +104,9 @@ class ServiceAPIClient(NotifyAdminAPIClient):
             'organisation',
             'letter_contact_block',
             'dvla_organisation',
-            'permissions'
+            'permissions',
+            'organisation_type',
+            'free_sms_fragment_limit',
         }
         if disallowed_attributes:
             raise TypeError('Not allowed to update service attributes: {}'.format(
diff --git a/app/templates/components/table.html b/app/templates/components/table.html
index aaf0d635a..5fddff5b8 100644
--- a/app/templates/components/table.html
+++ b/app/templates/components/table.html
@@ -92,6 +92,13 @@
   {% endcall %}
 {%- endmacro %}
 
+{% macro optional_text_field(text, default='Not set') -%}
+  {{ text_field(
+    text or default,
+    status='' if text else 'default'
+  ) }}
+{%- endmacro %}
+
 {% macro link_field(text, link) -%}
   {% call field() %}
     <a href="{{ link }}">{{ text }}</a>
diff --git a/app/templates/views/add-service.html b/app/templates/views/add-service.html
index 75dcc3cae..a7c88d2d2 100644
--- a/app/templates/views/add-service.html
+++ b/app/templates/views/add-service.html
@@ -1,4 +1,5 @@
 {% extends "withoutnav_template.html" %}
+{% from "components/radios.html" import radios %}
 {% from "components/textbox.html" import textbox %}
 {% from "components/page-footer.html" import page_footer %}
 
@@ -12,13 +13,15 @@
   <div class="column-two-thirds">
 
     <h1 class="heading-large">
-      When people receive notifications, who should they be from?
+      About your service
     </h1>
 
     <form autocomplete="off" method="post">
 
       {{ textbox(form.name, hint="You can change this later") }}
 
+      {{ radios(form.organisation_type) }}
+
       {{ page_footer('Add service') }}
 
     </form>
diff --git a/app/templates/views/service-settings.html b/app/templates/views/service-settings.html
index d9845437d..c85a3920b 100644
--- a/app/templates/views/service-settings.html
+++ b/app/templates/views/service-settings.html
@@ -1,7 +1,7 @@
 {% extends "withnav_template.html" %}
 {% from "components/banner.html" import banner_wrapper %}
 {% from "components/browse-list.html" import browse_list %}
-{% from "components/table.html" import mapping_table, row, text_field, edit_field, field, boolean_field %}
+{% from "components/table.html" import mapping_table, row, text_field, optional_text_field, edit_field, field, boolean_field %}
 
 {% block service_page_title %}
   Settings
@@ -90,7 +90,7 @@
             {% if (current_user.has_permissions([], admin_override=True) or not can_receive_inbound)  and not can_receive_inbound %}
               {{ edit_field('Change', url_for('.service_set_sms_sender', service_id=current_service.id, set_inbound_sms=False)) }}
             {% else %}
-                 {{ text_field('') }}
+              {{ text_field('') }}
             {% endif %}
 
           {% endcall %}
@@ -110,10 +110,7 @@
           {% if can_receive_inbound %}
             {% call row() %}
               {{ text_field('API endpoint for received text messages') }}
-              {{ text_field(
-                'None' if not inbound_api_url else inbound_api_url,
-                status='' if inbound_api_url else 'default'
-              ) }}
+              {{ optional_text_field(inbound_api_url) }}
               {{ edit_field('Change', url_for('.service_set_inbound_api', service_id=current_service.id)) }}
             {% endcall %}
           {% endif %}
@@ -138,8 +135,8 @@
         {% if 'letter' in current_service.permissions %}
           {% call row() %}
             {{ text_field('Sender addresses') }}
-            {% call field(status='default' if default_letter_contact_block == "None" else '') %}
-              {{ default_letter_contact_block | string | nl2br | safe if default_letter_contact_block else 'None'}}
+            {% call field(status='default' if default_letter_contact_block == "Not set" else '') %}
+              {{ default_letter_contact_block | string | nl2br | safe if default_letter_contact_block else 'Not set'}}
               {% if letter_contact_details_count > 1 %}
                 <div class="hint">
                   {{ '…and %d more' | format(letter_contact_details_count - 1) }}
@@ -191,6 +188,18 @@
         field_headings_visible=False,
         caption_visible=False
       ) %}
+        {% call row() %}
+          {{ text_field('Organisation type')}}
+          {{ optional_text_field(
+            (current_service.organisation_type or '')|title
+          ) }}
+          {{ edit_field('Change', url_for('.set_organisation_type', service_id=current_service.id)) }}
+        {% endcall %}
+        {% call row() %}
+          {{ text_field('Free text message allowance')}}
+          {{ text_field('{:,}'.format(current_service.free_sms_fragment_limit)) }}
+          {{ edit_field('Change', url_for('.set_free_sms_allowance', service_id=current_service.id)) }}
+        {% endcall %}
         {% call row() %}
           {{ text_field('Email branding' )}}
           {% call field() %}
diff --git a/app/templates/views/service-settings/set-free-sms-allowance.html b/app/templates/views/service-settings/set-free-sms-allowance.html
new file mode 100644
index 000000000..58ff3b36d
--- /dev/null
+++ b/app/templates/views/service-settings/set-free-sms-allowance.html
@@ -0,0 +1,21 @@
+{% extends "withnav_template.html" %}
+{% from "components/textbox.html" import textbox %}
+{% from "components/page-footer.html" import page_footer %}
+
+{% block service_page_title %}
+  Emails
+{% endblock %}
+
+{% block maincolumn_content %}
+
+  <form method="post">
+    <h1 class="heading-large">Free text message allowance</h1>
+    {{ textbox(form.free_sms_allowance) }}
+    {{ page_footer(
+      'Save',
+      back_link=url_for('.service_settings', service_id=current_service.id),
+      back_link_text='Back to settings'
+    ) }}
+  </form>
+
+{% endblock %}
diff --git a/app/templates/views/service-settings/set-organisation-type.html b/app/templates/views/service-settings/set-organisation-type.html
new file mode 100644
index 000000000..afa9474ed
--- /dev/null
+++ b/app/templates/views/service-settings/set-organisation-type.html
@@ -0,0 +1,22 @@
+{% extends "withnav_template.html" %}
+{% from "components/radios.html" import radios, branding_radios %}
+{% from "components/page-footer.html" import page_footer %}
+
+{% block service_page_title %}
+  Set branding and organisation
+{% endblock %}
+
+{% block maincolumn_content %}
+
+  <h1 class="heading-large">Set organisation type</h1>
+    <form method="post">
+      {{ radios(form.organisation_type) }}
+      {{ page_footer(
+        'Save',
+        back_link=url_for('.service_settings', service_id=current_service.id),
+        back_link_text='Back to settings'
+      ) }}
+    </form>
+  </div>
+
+{% endblock %}
diff --git a/tests/__init__.py b/tests/__init__.py
index d39311897..b48e2e33e 100644
--- a/tests/__init__.py
+++ b/tests/__init__.py
@@ -54,6 +54,8 @@ def service_json(
     letter_contact_block=None,
     inbound_api=None,
     permissions=['email', 'sms'],
+    organisation_type='central',
+    free_sms_fragment_limit=250000,
 ):
     if users is None:
         users = []
@@ -66,12 +68,14 @@ def service_json(
         'name': name,
         'users': users,
         'message_limit': message_limit,
+        'free_sms_fragment_limit': free_sms_fragment_limit,
         'active': active,
         'restricted': restricted,
         'email_from': email_from,
         'reply_to_email_address': reply_to_email_address,
         'sms_sender': sms_sender,
         'research_mode': research_mode,
+        'organisation_type': organisation_type,
         'organisation': organisation,
         'branding': branding,
         'created_at': created_at or str(datetime.utcnow()),
diff --git a/tests/app/main/views/test_add_service.py b/tests/app/main/views/test_add_service.py
index 703e8ab7a..ee584a27a 100644
--- a/tests/app/main/views/test_add_service.py
+++ b/tests/app/main/views/test_add_service.py
@@ -1,3 +1,4 @@
+import pytest
 from flask import url_for, session
 
 from app.utils import is_gov_user
@@ -20,7 +21,7 @@ def test_get_should_render_add_service_template(
 ):
     response = logged_in_client.get(url_for('main.add_service'))
     assert response.status_code == 200
-    assert 'Which service do you want to set up notifications for?' in response.get_data(as_text=True)
+    assert 'About your service' in response.get_data(as_text=True)
 
 
 def test_should_add_service_and_redirect_to_tour_when_no_services(
@@ -33,11 +34,17 @@ def test_should_add_service_and_redirect_to_tour_when_no_services(
 ):
     response = logged_in_client.post(
         url_for('main.add_service'),
-        data={'name': 'testing the post'})
+        data={
+            'name': 'testing the post',
+            'organisation_type': 'local',
+        }
+    )
     assert mock_get_services_with_no_services.called
     mock_create_service.assert_called_once_with(
         service_name='testing the post',
+        organisation_type='local',
         message_limit=app_.config['DEFAULT_SERVICE_LIMIT'],
+        free_sms_fragment_limit=25000,
         restricted=True,
         user_id=api_user_active.id,
         email_from='testing.the.post'
@@ -62,6 +69,11 @@ def test_should_add_service_and_redirect_to_tour_when_no_services(
     )
 
 
+@pytest.mark.parametrize('organisation_type, free_allowance', [
+    ('central', 250 * 1000),
+    ('local', 25 * 1000),
+    ('nhs', 25 * 1000),
+])
 def test_should_add_service_and_redirect_to_dashboard_when_existing_service(
     app_,
     logged_in_client,
@@ -69,14 +81,22 @@ def test_should_add_service_and_redirect_to_dashboard_when_existing_service(
     mock_create_service_template,
     mock_get_services,
     api_user_active,
+    organisation_type,
+    free_allowance,
 ):
     response = logged_in_client.post(
         url_for('main.add_service'),
-        data={'name': 'testing the post'})
+        data={
+            'name': 'testing the post',
+            'organisation_type': organisation_type,
+        }
+    )
     assert mock_get_services.called
     mock_create_service.assert_called_once_with(
         service_name='testing the post',
+        organisation_type=organisation_type,
         message_limit=app_.config['DEFAULT_SERVICE_LIMIT'],
+        free_sms_fragment_limit=free_allowance,
         restricted=True,
         user_id=api_user_active.id,
         email_from='testing.the.post'
@@ -99,7 +119,13 @@ def test_should_return_form_errors_with_duplicate_service_name_regardless_of_cas
     logged_in_client,
     mock_create_duplicate_service,
 ):
-    response = logged_in_client.post(url_for('main.add_service'), data={'name': 'SERVICE ONE'})
+    response = logged_in_client.post(
+        url_for('main.add_service'),
+        data={
+            'name': 'SERVICE ONE',
+            'organisation_type': 'central',
+        },
+    )
 
     assert response.status_code == 200
     assert 'This service name is already in use' in response.get_data(as_text=True)
diff --git a/tests/app/main/views/test_service_settings.py b/tests/app/main/views/test_service_settings.py
index b8cf44e9c..e07b27215 100644
--- a/tests/app/main/views/test_service_settings.py
+++ b/tests/app/main/views/test_service_settings.py
@@ -22,7 +22,7 @@ from tests.conftest import (
     get_non_default_reply_to_email_address,
     get_default_letter_contact_block,
     get_non_default_letter_contact_block,
-    SERVICE_ONE_ID
+    SERVICE_ONE_ID,
 )
 
 
@@ -34,7 +34,7 @@ from tests.conftest import (
 
         'Label Value Action',
         'Send emails On Change',
-        'Email reply to addresses None Change',
+        'Email reply to addresses Not set Change',
 
         'Label Value Action',
         'Send text messages On Change',
@@ -53,7 +53,7 @@ from tests.conftest import (
 
         'Label Value Action',
         'Send emails On Change',
-        'Email reply to addresses None Change',
+        'Email reply to addresses Not set Change',
 
         'Label Value Action',
         'Send text messages On Change',
@@ -65,6 +65,8 @@ from tests.conftest import (
         'Send letters Off Change',
 
         'Label Value Action',
+        'Organisation type Central Change',
+        'Free text message allowance 250,000 Change',
         'Email branding GOV.UK Change',
         'Letter branding HM Government Change',
 
@@ -113,7 +115,7 @@ def test_should_show_overview(
         'Text message sender 0781239871',
         'International text messages On Change',
         'Receive text messages On Change',
-        'API endpoint for received text messages None Change',
+        'API endpoint for received text messages Not set Change',
 
         'Label Value Action',
         'Send letters Off Change',
@@ -250,7 +252,7 @@ def test_letter_contact_block_shows_none_if_not_set(
 
     page = BeautifulSoup(response.data.decode('utf-8'), 'html.parser')
     div = page.find_all('tr')[8].find_all('td')[1].div
-    assert div.text.strip() == 'None'
+    assert div.text.strip() == 'Not set'
     assert 'default' in div.attrs['class'][0]
 
 
@@ -1360,6 +1362,121 @@ def test_should_set_branding_and_organisations(
     )
 
 
+@pytest.mark.parametrize('method', ['get', 'post'])
+@pytest.mark.parametrize('endpoint', [
+    'main.set_organisation_type',
+    'main.set_free_sms_allowance',
+])
+def test_organisation_type_pages_are_platform_admin_only(
+    client_request,
+    method,
+    endpoint,
+):
+    getattr(client_request, method)(
+        endpoint,
+        service_id=SERVICE_ONE_ID,
+        _expected_status=403,
+        _test_page_title=False,
+    )
+
+
+def test_should_show_page_to_set_organisation_type(
+    logged_in_platform_admin_client,
+):
+    response = logged_in_platform_admin_client.get(url_for(
+        'main.set_organisation_type',
+        service_id=SERVICE_ONE_ID
+    ))
+    assert response.status_code == 200
+    page = BeautifulSoup(response.data.decode('utf-8'), 'html.parser')
+
+    labels = page.select('label')
+    checked_radio_buttons = page.select('input[checked]')
+
+    assert len(checked_radio_buttons) == 1
+    assert checked_radio_buttons[0]['value'] == 'central'
+
+    assert len(labels) == 3
+    for index, expected in enumerate((
+        'Central government',
+        'Local government',
+        'NHS',
+    )):
+        assert normalize_spaces(labels[index].text) == expected
+
+
+@pytest.mark.parametrize('organisation_type', [
+    'central',
+    'local',
+    'nhs',
+    pytest.mark.xfail('private sector'),
+])
+def test_should_set_organisation_type(
+    logged_in_platform_admin_client,
+    mock_update_service,
+    organisation_type,
+):
+    response = logged_in_platform_admin_client.post(
+        url_for(
+            'main.set_organisation_type',
+            service_id=SERVICE_ONE_ID,
+        ),
+        data={
+            'organisation_type': organisation_type,
+            'organisation': 'organisation-id'
+        },
+    )
+    assert response.status_code == 302
+    assert response.location == url_for('main.service_settings', service_id=SERVICE_ONE_ID, _external=True)
+
+    mock_update_service.assert_called_once_with(
+        SERVICE_ONE_ID,
+        organisation_type=organisation_type,
+    )
+
+
+def test_should_show_page_to_set_sms_allowance(
+    logged_in_platform_admin_client,
+):
+    response = logged_in_platform_admin_client.get(url_for(
+        'main.set_free_sms_allowance',
+        service_id=SERVICE_ONE_ID
+    ))
+    assert response.status_code == 200
+    page = BeautifulSoup(response.data.decode('utf-8'), 'html.parser')
+
+    assert normalize_spaces(page.select_one('label').text) == 'Numbers of text message fragments per year'
+
+
+@pytest.mark.parametrize('given_allowance, expected_api_argument', [
+    ('1', 1),
+    ('250000', 250000),
+    pytest.mark.xfail(('foo', 'foo')),
+])
+def test_should_set_sms_allowance(
+    logged_in_platform_admin_client,
+    mock_update_service,
+    given_allowance,
+    expected_api_argument,
+):
+    response = logged_in_platform_admin_client.post(
+        url_for(
+            'main.set_free_sms_allowance',
+            service_id=SERVICE_ONE_ID,
+        ),
+        data={
+            'free_sms_allowance': given_allowance,
+        },
+    )
+    assert response.status_code == 302
+    assert response.location == url_for('main.service_settings', service_id=SERVICE_ONE_ID, _external=True)
+
+    mock_update_service.assert_called_once_with(
+        SERVICE_ONE_ID,
+        free_sms_fragment_limit=expected_api_argument,
+    )
+
+
 def test_switch_service_enable_letters(
     logged_in_platform_admin_client,
     service_one,
diff --git a/tests/app/notify_client/test_service_api_client.py b/tests/app/notify_client/test_service_api_client.py
index 9fa6cd4d9..a77090a5f 100644
--- a/tests/app/notify_client/test_service_api_client.py
+++ b/tests/app/notify_client/test_service_api_client.py
@@ -43,3 +43,40 @@ def test_client_only_updates_allowed_attributes(mocker):
     with pytest.raises(TypeError) as error:
         ServiceAPIClient().update_service('service_id', foo='bar')
     assert str(error.value) == 'Not allowed to update service attributes: foo'
+
+
+def test_client_creates_service_with_correct_data(
+    mocker,
+    active_user_with_permissions,
+    fake_uuid,
+):
+    client = ServiceAPIClient()
+    mock_post = mocker.patch.object(client, 'post')
+    mocker.patch('app.notify_client.current_user', id='123')
+
+    client.create_service(
+        service_name='My first service',
+        organisation_type='central_government',
+        free_sms_fragment_limit=2,
+        message_limit=1,
+        restricted=True,
+        user_id=fake_uuid,
+        email_from='test@example.com',
+    )
+    mock_post.assert_called_once_with(
+        '/service',
+        dict(
+            # Autogenerated arguments
+            created_by='123',
+            active=True,
+            # ‘service_name’ argument is coerced to ‘name’
+            name='My first service',
+            # The rest pass through with the same names
+            organisation_type='central_government',
+            free_sms_fragment_limit=2,
+            message_limit=1,
+            restricted=True,
+            user_id=fake_uuid,
+            email_from='test@example.com',
+        ),
+    )
diff --git a/tests/conftest.py b/tests/conftest.py
index 1282c9f92..38ad538a6 100644
--- a/tests/conftest.py
+++ b/tests/conftest.py
@@ -488,7 +488,15 @@ def mock_get_service_with_letters(mocker, api_user_active):
 
 @pytest.fixture(scope='function')
 def mock_create_service(mocker):
-    def _create(service_name, message_limit, restricted, user_id, email_from):
+    def _create(
+        service_name,
+        organisation_type,
+        message_limit,
+        free_sms_fragment_limit,
+        restricted,
+        user_id,
+        email_from,
+    ):
         service = service_json(
             101, service_name, [user_id], message_limit=message_limit, restricted=restricted, email_from=email_from)
         return service['id']
@@ -499,7 +507,15 @@ def mock_create_service(mocker):
 
 @pytest.fixture(scope='function')
 def mock_create_duplicate_service(mocker):
-    def _create(service_name, message_limit, restricted, user_id, email_from):
+    def _create(
+        service_name,
+        organisation_type,
+        message_limit,
+        free_sms_fragment_limit,
+        restricted,
+        user_id,
+        email_from,
+    ):
         json_mock = Mock(return_value={'message': {'name': ["Duplicate service name '{}'".format(service_name)]}})
         resp_mock = Mock(status_code=400, json=json_mock)
         http_error = HTTPError(response=resp_mock, message="Default message")