diff --git a/app/commands.py b/app/commands.py
index ebdd0db07..5a9d96535 100644
--- a/app/commands.py
+++ b/app/commands.py
@@ -891,7 +891,7 @@ def populate_annual_billing_with_the_previous_years_allowance(year):
 def populate_annual_billing_with_defaults(year, missing_services_only):
     """
     Add or update annual billing with free allowance defaults for all active services.
-    DEFAULT_FREE_SMS_FRAGMENT_LIMITS is the new free allowances for the financial year starting 2021.
+    The default free allowance limits are in: app/dao/annual_billing_dao.py:57.
 
     If missing_services_only is true then only add rows for services that do not have annual billing for that year yet.
     This is useful to prevent overriding any services that have a free allowance that is not the default.
diff --git a/app/dao/annual_billing_dao.py b/app/dao/annual_billing_dao.py
index 515d30263..36d12e540 100644
--- a/app/dao/annual_billing_dao.py
+++ b/app/dao/annual_billing_dao.py
@@ -90,6 +90,10 @@ def set_default_free_allowance_for_service(service, year_start=None):
     }
     if not year_start:
         year_start = get_current_financial_year_start_year()
+    if year_start < 2020:
+        year_start = 2020
+    if year_start > 2021:
+        year_start = 2021
     if service.organisation_type:
         free_allowance = default_free_sms_fragment_limits[service.organisation_type][year_start]
     else:
diff --git a/tests/app/dao/test_annual_billing_dao.py b/tests/app/dao/test_annual_billing_dao.py
index 580102a59..37e8e4fb2 100644
--- a/tests/app/dao/test_annual_billing_dao.py
+++ b/tests/app/dao/test_annual_billing_dao.py
@@ -9,7 +9,7 @@ from app.dao.annual_billing_dao import (
 )
 from app.dao.date_util import get_current_financial_year_start_year
 from app.models import AnnualBilling
-from tests.app.db import create_annual_billing, create_service_with_organisation
+from tests.app.db import create_annual_billing, create_service
 
 
 def test_dao_update_free_sms_fragment_limit(notify_db_session, sample_service):
@@ -65,10 +65,12 @@ def test_dao_update_annual_billing_for_future_years(notify_db_session, sample_se
                           ('school_or_college', 2020, 25000),
                           ('other', 2020, 25000),
                           (None, 2020, 25000),
+                          ('central', 2019, 250000),
+                          ('school_or_college', 2022, 10000)
                           ])
 def test_set_default_free_allowance_for_service(notify_db_session, org_type, year, expected_default):
 
-    service = create_service_with_organisation(org_type=org_type)
+    service = create_service(organisation_type=org_type)
 
     set_default_free_allowance_for_service(service=service, year_start=year)
 
diff --git a/tests/app/db.py b/tests/app/db.py
index 3947a5afe..2338a62ec 100644
--- a/tests/app/db.py
+++ b/tests/app/db.py
@@ -199,14 +199,6 @@ def create_service_with_defined_sms_sender(
     return service
 
 
-def create_service_with_organisation(org_type):
-    service = create_service(service_name=f'{org_type} service')
-    org = create_organisation(name=f'{org_type} org', organisation_type=org_type)
-    dao_add_service_to_organisation(service=service, organisation_id=org.id)
-
-    return service
-
-
 def create_template(
         service,
         template_type=SMS_TYPE,