A new charging structure for data controllers has been announced by the Government, making up part of its effort to continue funding the Information Commissioner’s Office (ICO).
The new structure will come into effect on 25 May 2018, coinciding with the implementation of GDPR. The ICO has produced a ‘Guide to the Data Protection Fee’ to help data controllers understand the need for a new funding model and what they’ll be required to pay from 25 May 2018.
Currently, the data protection work of ICO is funded through fees levied on organisations that process personal data, unless they are exempt. Those organisations that currently pay the notification fee will be required to continue paying until the implementation data, unless they are currently exempt. pt.
When GDPR comes into effect on 25 May 2018, will remove the requirement for data controllers to pay fee to the ICO. Therefore, to ensure the ICO is adequately funded, the government has proposed the new funding structure based on the risk to the data processed by an organisation.
The model consists of three tiers and is based on a several factors, including size, turnover and whether an organisation is a public authority or charity. Under Tier 1, micro organisations with maximum turnover of £632,000 or no more than 10 members of staff are required to pay fee of £40 (or £35 if paid by direct debit).
Tier 2 of the model explains that SMEs with maximum turnover of £36m or no more than 250 members of staff will be required to pay fee of £60. Under Tier 3, large organisations – those not meeting the criteria of Tiers 1 or 2 – will be required to pay £2,900.
The ICO has said that the fee is higher under Tier 3 because these organisations are likely to process the largest volumes of data, and therefore represent a greater level of risk. Additionally, the office said financial penalties will continue to be imposed on organisations for not paying fees, but these will be in the form of civil monetary penalties rather than a criminal sanction.