{"id":176396,"date":"2022-10-05T00:04:24","date_gmt":"2022-10-04T23:04:24","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=176396"},"modified":"2025-03-13T10:31:25","modified_gmt":"2025-03-13T10:31:25","slug":"data-protection-fee-ico","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/data-privacy-it\/data-protection-fee-ico\/","title":{"rendered":"What is the ICO Data Protection Fee, and Does My Company in England Have to Pay It?"},"content":{"rendered":"\n<p>Running a company is an expensive and time-consuming business. It can be challenging to keep up with the various licences, subscriptions and fees payable to other organisations. In this way, many business owners mistakenly fail to pay the ICO\u2019s annual data protection fee, risking an ICO fine. This article will explore whether your business is liable to pay the annual data protection fee and, if so, the risk to your organisation of failing to do so.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is the ICO?<\/h2>\n\n\n\n<p>The Information Commissioner&#8217;s Office (ICO) is an independent body set up to police data protection law, including the <a href=\"https:\/\/legalvision.co.uk\/data-privacy-it\/how-does-gdpr-affect-my-business\/\">General Data Protection Regulation<\/a> (GDPR), and issue fines for non-compliance. One of the aims of the ICO is to provide businesses in England with sufficient guidance, both through online written guidance and a telephone helpline, to help them comply with our data protection law.&nbsp; However, because this is an expensive mission to fund, the ICO charges a data protection fee to organisations in England.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is the ICO Data Protection Fee?<\/h2>\n\n\n\n<p>The<em> Data Protection Act<\/em> 2018 mandates that organisations in England that process personal information must pay a data protection fee to the ICO unless they are exempt.<\/p>\n\n\n\n<p>Processing personal data refers to your organisation handling or storing information which can identify an individual. For example, this may include recording their:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>full name;<\/li>\n\n\n\n<li>postal address;<\/li>\n\n\n\n<li>telephone number; or&nbsp;<\/li>\n\n\n\n<li>date of birth.<\/li>\n<\/ul>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+448081968584\" class=\"not-prose\">0808 196 8584<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    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If your business uses CCTV for crime prevention, you will likely have to pay the fee. <\/p>\n\n\n\n<div  class=\"box box--icon box--star\">\n    <p>It is helpful to note that the ICO classes the use of a dashcam within a vehicle used for work or commuting as CCTV, which would also create an automatic obligation to pay a data protection fee.<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">How Much is the Data Protection Fee?<\/h2>\n\n\n\n<p>The ICO provides three tiers of fees depending on the size of your organisation. These tiers are as follows:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Micro organisations (no more than ten members of staff and turnover of less than \u00a3632,000 per financial year);<\/li>\n\n\n\n<li><a href=\"https:\/\/legalvision.co.uk\/data-privacy-it\/ico-fee-small-businesses\/\">Small<\/a> and medium organisations (no more than 250 members of staff and turnover of less than \u00a336 million per financial year); and<\/li>\n\n\n\n<li>Large organisations (more than 250 members of staff or turnover of more than \u00a336 million).<\/li>\n<\/ul>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p>Using the ICO\u2019s definitions, micro organisations must pay \u00a340 per year, small and medium organisations pay \u00a360 per year, and large organisations pay \u00a32,900 per year.<\/p>\n<\/div>\n\n\n\n<p>These figures are accurate as of 2022 and are subject to change.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Happens if My Business Fails to Pay?<\/h2>\n\n\n\n<p>The <a href=\"https:\/\/legalvision.co.uk\/data-privacy-it\/ico-decide-fine-company\/\">ICO may fine organisations<\/a> that fail to pay a data protection fee. <\/p>\n\n\n\n<div  class=\"box box--icon box--warning\">\n    <p>Their website confirms that they issued 126 financial penalties to organisations for failure to pay the data protection fee within a seven-month period between 2021 and 2022.<\/p>\n<\/div>\n\n\n\n<p>Currently, the ICO can award fines of up to \u00a34,000 for non-payment. Given that most businesses in England will only be liable to pay \u00a340 or \u00a360 per year, this is a hefty penalty.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How Can My Business Pay?<\/h2>\n\n\n\n<p>The easiest method is to visit the <a href=\"https:\/\/legalvision.co.uk\/data-privacy-it\/ico-decide-fine-company\/\">ICO<\/a> website and make an electronic payment there. The ICO currently deduct \u00a35 from your company\u2019s annual data protection fee for setting up a direct debit arrangement. Your organisation\u2019s data controller is generally responsible for paying the fee. However, there is no reason why a Director, CEO, COO or owner cannot pay from company funds instead.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Key Takeaways<\/h2>\n\n\n\n<p>In summary, most businesses in England must pay a data protection fee. Businesses that fail to pay their data protection fee risk a financial penalty far in excess of the relevant price. Given the electronic nature of business in England, it will be relatively rare for any company to argue that they do not process personal data. Rather, absent the ICO\u2019s online self-assessment tool stating otherwise, organisations in England are likely to owe an annual data protection fee to the ICO.&nbsp;<\/p>\n\n\n\n<p>If you need help complying with the ICO data protection fee, our experienced <a href=\"https:\/\/legalvision.co.uk\/it-lawyers-lp\/\">Data, Privacy and IT lawyers<\/a> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or visit our <a href=\"https:\/\/legalvision.co.uk\/membership\/\">membership page<\/a>.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Frequently Asked Questions<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1664924150492\"><strong class=\"schema-faq-question\"><strong>Why do small businesses have to pay the data protection fee?<\/strong><\/strong> <p class=\"schema-faq-answer\">The ICO believes that it is essential for all businesses, from sole traders to global corporations, to handle personal data safely. Therefore, it believes all relevant organisations should pay an annual fee. Nevertheless, smaller organisations pay a substantially smaller fee.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1664924159273\"><strong class=\"schema-faq-question\"><strong>How long does it take to pay the fee online?<\/strong><\/strong> <p class=\"schema-faq-answer\">The ICO believe businesses can complete the fee-paying process within 15 minutes, so it is not a hassle. Companies receive a \u00a35 deduction for setting up a direct debit arrangement.\u00a0<\/p> <\/div> <\/div>\n\n\n\n\n\n\n\n\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"9eb4f72322\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/176396\" \/>            <input value=\"https:\/\/legalvision.co.uk\/data-privacy-it\/data-protection-fee-ico\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"What is the ICO Data Protection Fee, and Does My Company in England Have to Pay It?\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Running a company is an expensive and time-consuming business. It can be challenging to keep up with the various licences, subscriptions and fees payable to other organisations. In this way, many business owners mistakenly fail to pay the ICO\u2019s annual data protection fee, risking an ICO fine. This article will explore whether your business is<a href=\"https:\/\/legalvision.co.uk\/data-privacy-it\/data-protection-fee-ico\/\">Continue reading <span class=\"sr-only\">&#8220;What is the ICO Data Protection Fee, and Does My Company in England Have to Pay It?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13349,"featured_media":3180,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"2170,2028,1787,171871,174935,171888","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[27],"tags":[20,21,366,798],"class_list":["post-176396","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-data-privacy-it","tag-small-business","tag-medium-business","tag-data-privacy","tag-data-protection-rules"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What is the ICO Data Protection Fee? 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