With effect from 1 October 2009, larger organisations will face
annual fees of £500 for notifying their data processing.
Previously, a flat fee of only £35 was payable for compliance with
this requirement of the Data Protection Act 1998 (DPA) and whether
this new higher figure applies will depend on the organisation's
turnover and number of staff. Failure to pay the correct fee
could be a criminal offence for which directors and officers of
companies could have personal liability if attributable to their
neglect.
The £500 fee will be payable on any new notification, or renewal
of an existing notification, by a data controller organisation
which is neither a charity nor a small occupational pension scheme
and:
- had a turnover of more than £25.9 million in its last financial
year; and
- has more than 250 members of staff.
Public authorities with more than 250 members of staff will also
have to pay the £500 fee, while data controllers who do not meet
these thresholds will still be charged only £35.
This new regime could have significant cost implications for
larger data controllers (and particularly groups of companies
comprising a number of data controllers) and will focus the
attention of all data controllers on how many notifications are
actually required to cover their processing of personal data.
Accordingly, data controllers will need to ensure that they have
up-to-date information to assess whether they are required to pay
£35 or £500, and making notifications on a "just in case" basis may
not be as cheap an option as it has been so far.
Under the DPA, no notification is required where a date
controller's processing of personal data relates to staff
administration, advertising, marketing and public relations (in
respect of the data controller's own business), accounts and
records and where the data controller is a non-profit making
organisation.
Contacts
Ian Mason
T: +44 (0)20 7638 1111
E: ian.mason@ashurst.com
Mark Lubbock
T: +44 (0)20 7638 1111
E: mark.lubbock@ashurst.com
Clive Tucker
T: +44 (0)20 7638 1111
E: clive.tucker@ashurst.com
This newsflash is not intended to be a comprehensive review of
all developments in the law and practice, or to cover all aspects
of those referred to. Readers should take legal advice before
applying the information contained in this publication to specific
issues or transactions.