Top-tier data-processing fees rise sixfold to £2,900 in new ICO funding structure

Written by Sam Trendall on 24 February 2018 in News
News

Large organisations that process personal data will see their annual subsidy contribution rise from £500

The new funding model for the Information Commissioner’s Office will see the annual costs for large businesses increase from £500 to £2,900.

The Data Protection Fee system will require entities that process personal data to pay an annual fee depending on their size. The system is split into three tiers:

  • Tier 1: Micro organisations that have an annual turnover of up to £632,000 and/or 10 or fewer members of staff must pay £40
  • Tier 2: Small and medium organisations that have an annual turnover of up to £36m and/or 250 or fewer members of staff must pay £60
  • Tier 3: Large organisations that do not qualify for either of the first two tiers must pay £2,900

Organisations are exempt from paying the fees if they process data only for one or more of the following reasons: staff administration; advertising, marketing, and public relations; accounts and records; not-for-profit purposes; personal, family, or household affairs; maintaining a public register; judicial functions.

Exemptions also apply to organisations who process personal data without an automating tool, such as a computer.


Related content


When calculating their tier, public-sector organisations need only bear in mind numbers of staff – and not annual turnover. All charities that are not exempt will only be liable to pay the tier 1 fee, as will small occupational pensions schemes.

To help organisations work out what they need to pay, the ICO will equip its website with a self-assessment tool before the new rules take effect 25 May – the same day as the EU General Data Protection Regulation comes into effect.

Under the previous two-tier system, data-processing organisations were required to register with the ICO by providing notice of what information they were handling and how it was being used. For this, they were charged a notification fee of either £35, for companies with either fewer than 250 staff or a turnover of under £25.9m, or £500, for every organisation that did not meet either of those criteria.

The new fee structure, which was presented to parliament earlier this week, is designed to fulfil the government’s statutory obligation to ensure the ICO is sufficiently funded. 

 

 

About the author

Sam Trendall is editor of PublicTechnology

Share this page

Tags

Categories

CONTRIBUTIONS FROM READERS

Please login to post a comment or register for a free account.

Comments

Ian Headley (not verified)

Submitted on 28 February, 2018 - 20:45
Those additional staff and pay rises won't pay for themselves.

Related Articles

Full-fibre primary schools and the Mancunian skills gap – 10 tech announcements you may have missed in the Budget
31 October 2018

Although big-ticket technology announcements were largely absent from the chancellor’s speech, the Budget contained a number of initiatives and investments in digital and data

Government expands Google partnership for SME export drive
28 November 2018

Department for International Trade to work with internet giant to help small businesses cash in on overseas opportunities

MPs seize Facebook documents for fake news investigation
26 November 2018

A serjeant-at-arms was dispatched to a London hotel room to take papers believed to include emails from Mark Zuckerberg​

Related Sponsored Articles

Balancing security and digital transformation
26 October 2018

With the annual worldwide cost of cybercrime set to double from $3tn in 2015 to $6tn by 2021, BT offers advice on how chief information security officers can better protect their...