December 3, 2018

Organisations across the business services, construction and finance sectors are among the first to be fined by the ICO for not paying the data protection fee under the Data Protection (Charges and Information) Regulations 2018, which came into force alongside the new Data Protection Act 2018 and the GDPR in May 2018.

Under the 2018 Regulations, all organisations, companies and sole traders that process personal data must pay an annual fee to the ICO unless they are exempt. Fines for not paying can be up to a maximum of £4,350.

These first organisations have been fined for not renewing their fees following their expiry, and more fines are set to follow. More than 900 notices of intent to fine have been issued by the ICO since September and more than 100 penalty notices are being issued in this first round.

The fines range from £400 to £4,000 depending on the size and turnover of the organisation. Aggravating factors may lead to an increase in the fine up to a maximum of £4,350. The fines recovered do not go to the ICO; instead they go to the Treasury’s Consolidated Fund.

The data protection fee is set by Government, which has a statutory duty to ensure the ICO is adequately funded, and is part of the 2018 Regulations. It replaces the need to notify or register with the ICO.

Under the funding model set by Government, organisations are divided into three tiers based on their size, turnover and whether it is a public authority or charity. For very small organisations, the fee will not be any higher than the £35 they paid before May 2018 (if they take advantage of a £5 reduction for paying by direct debit). Larger organisations will be required to pay £2,900. The ICO says that the fee is higher because these organisations are likely to hold and process the largest volumes of data and therefore represent a greater level of risk.

Organisations that had a current registration (or notification) under the 1998 Act before 25 May 2018 do not have to pay the new fee until that registration has expired. To read the ICO press release in full, click here.