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Data Protection Fees and GDPR Compliance

What is a Data Protection Fee?

Under the UK General Data Protection Regulations 2018 (UK GDPR), organisations (including sole traders) that collect, process or use personal information need to pay a data protection fee, unless they are exempt.[1]

In the UK The Information Commissioner’s Office (ICO) is the regulator of data protection and other information rights legislation. All organisations and sole traders must pay their data protection fee to the ICO on an annual basis. The fee can cost as little as £40 a year (up to £2,900 for large organisations).[2]
 

What happens if you don’t pay?

If you need to pay a Data Protection Fee and do not pay, you could be fined up to £4,000 by the ICO. Between May 2021 and January 2022, the ICO issued over 120 monetary penalties to organisations that had failed to pay their data protection fee and have continued to fine several companies per year for failure to keep up-to-date with their annual payments. On top of this, the ICO lists the majority of organisations that receive these fines on their website.

As well as naming and shaming most of the organisations that they have fined, the ICO also publishes the names of all fee-paying organisations on the register of fee payers. This helps make it clear to your customers, clients and suppliers that you are aware of your legal obligations when processing personal information.[3]
 

Does paying the Data Protection Fee mean UK GDPR compliance?

In short… No!  While paying the fee helps you demonstrate your commitment to data protection, you are still legally required to implement all necessary practices, policies and procedures to fully comply with the UK GDPR across your organization/business.
 

What happens if you fail to comply with the UK GDPR?

Failure to comply with UK GDPR means that you or your organisation has failed to meet the requirements of the Regulation, which governs how personal data should be legally collected, stored, and processed, potentially leading to substantial fines from the ICO in the event that a breach has occurred. While not always the case, these fines can be as large as £17.5 million or 4% of the organisation’s/business’ annual global turnover from the previous year (whichever is greater), based on how severe the breach has been. Additionally, further legal action could be taken, if necessary.[4]

Examples of what constitutes a breach include, but are not limited to: failure to implement appropriate security measures, not providing individuals with access to their data, not properly notifying individuals about data breaches, processing personal data without a lawful basis.[5]

In addition to potentially receiving a fine for a breach, like with failure to pay your Annual Data Protection Fee, the ICO will name most of the organisations that have been fined for committing data breaches.
 

Why do the ICO list companies that they fine?

The ICO names the organisations and businesses that they have fined as a means to promote transparency to the public, hold companies accountable for their actions (or lack of), deter future violations, and encourage others to ensure their own data privacy practices are up to scratch. As alluded to earlier, it's a name and shame approach that is used in the public interest to help positively influence industry behavior in order to ensure that personal information of individuals is being protected in accordance with the law. However, much of the above is not to be too much cause for panic, if you ensure your compliance. Equally, the ICO aren’t out to fine everyone at any given moment. Much of their time and work is spent helping organsiations ensure they improve on compliance when things go wrong.[6]
 

How do I ensure compliance with GDPR?

Understanding data protection laws and incorporating them, as is necessary for the function of your business, can be a daunting task. However, there are options available and the choice is very much yours to make, but should be carefully considered based on the size of your organisation and the amount/extent to which you will be processing personal information.

Your first option requires a lot of commitment and a driven mentality to find the time to self teach, or pay to learn, everything necessary to ensure your business is compliant and implement the necessary processes, policies and procedures to keep the data you collect and process safe and secure.

Another option would be to employ somebody within the business to be the person responsible for ensuring the company is compliant with data protection laws and other relevant laws. Employing somebody in a full time role is likely to be beneficial for larger organisations that would require an individual to vigilantly oversee a broad variety of day to day activities involving the processing of customer data. Outsourcing these responsibilities does come at a higher cost per hour/day, so if this is a full time role, internally employing would be a money saving option. However, if you do carry out such activities, it is worth understanding that there may be more roles and responsibilities than a single person can be assigned, in order to maintain a strict and coherent level of compliance.

For smaller organisations that may not require an individual in a full time role for the sole responsibility of handling the data protection elements of the running of your business, you might look to assign the responsibilities internally to a suitable individual with the capacity to carry out the tasks associated with ensuring compliance, alongside their additional responsibilities.

The third option available to larger companies, smaller companies and sole traders alike, is to outsource the responsibilities to a data protection consultant with the relevant skills and knowledge to advise you and help your business ensure compliance and provide the best possible protection of the personal information that is financially achievable. There does often become a more incurred cost per hour/day, but this may be more financially beneficial in the long run, or in the short term, helps achieve a greater level of compliance more quickly.

At  Integral Data Privacy we offer these third party services to help you achieve your compliance with GDPR and other applicable laws from as little as £30 per hour. However, there are plenty of other options available to you and there are a number of factors worth taking into consideration when choosing a data protection consultant, such as: their expertise and knowledge in data privacy laws, certifications and/or qualifications held, their experience in your industry, their ability to understand your business practices and ensuring they can tailor solutions to your specific needs and provide necessary ongoing support. For some (but not all) businesses, you might also consider the availability of the consultant to travel for face-to-face/on-site visitations as these may be necessary in order to allow for the best possible outcomes. 

For further information on outsourced third parties and how Integral Data Privacy might be able to help with your business needs, feel free to reach out via our website or by emailing us directly.
 

© Integral Data Privacy
5 Osbourne Close, Bromborough, Wirral, CH62 6EY
Tel: 07716 236669
 

References:

[1] Information Commissioner's Office (2025), Data Protection Fee. Available at: https://ico.org.uk/for-organisations/data-protection-fee/ (Accessed 11/02/2025)

[2] Government Digital Service (2025), Pay the data protection fee. Available at: https://www.gov.uk/data-protection-register-notify-ico-personal-data (Accessed 11/02/2025)

[3] Information Commissioner’s Office (2025), Registration FAQs. Available at: https://ico.org.uk/for-organisations/data-protection-fee/faqs-data-protection-fee-payment-and-online-registration/ (Accessed 11/02/2025)

[4] Information Commissioner’s Office (2024), Enforcement of the code. Available at: https://ico.org.uk/for-organisations/uk-gdpr-guidance-and-resources/data-sharing/data-sharing-a-code-of-practice/enforcement-of-this-code/ (Accessed 11/02/2025)

[5] Information Commissioner’s Office (2024), Personal data breaches: A guide. Available at: https://ico.org.uk/for-organisations/report-a-breach/personal-data-breach/personal-data-breaches-a-guide/ (Accessed 11/02/2025)

[6] Information Commissioner's Office (2024), Fines and complaints. Available at: https://ico.org.uk/for-organisations/advice-for-small-organisations/frequently-asked-questions/fines-and-complaints/ (Accessed 11/02/2025)