The amount you pay to ICO for your data protection fee depends on the size of your business. They also take into consideration your turnover and business structure. This can be any amount from £40 to £2,900.
Is the fee subject to VAT?
The ICO website states:
“No. Statutory fees are outside the scope of VAT, so no VAT is charged on it.”
What tax code should I use when entering the fee on Sage?
Sage 50 Accounts
For transactions which are outside the scope of VAT you should use T9. This is assuming that you are using the standard tax codes in both programmes.
Transactions which are outside the scope of VAT do not need to be reported on your VAT return to HMRC.
Sage Business Cloud Accounting
For transactions which are outside the scope of VAT you should use ‘No VAT’.
For further assistance on tax codes you can download our free guide here.
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