If your business processes personal data (that is information about living individuals) you may need to register under the Data Protection Act. Earlier this month the Information Commissioner (regulator for use of personal data and Freedom of Information) successfully prosecuted an accountancy firm for failing to register when its activities involved processing personal data.

There are exemptions for businesses whose primary activity does not involve processing personal data except in relation to customer accounts and marketing their own products or services. Any activities that involve using personal data as a primary part of the business, for example accountancy, law, consulting, pension or benefits administration etc must register. There is a tool on the Information Commissioner's website to help you decide if registration is required for your business at www.ico.gov.uk

Failure to register (or notify, the phrases are interchangeable) or failing to keep a registration up to date with current data processing activities is a criminal offence under the DPA. Be aware that the Information Commissioner’s Office prosecutes firms for these offences. Be aware also that the Office tends to target specific sectors, currently it is the turn of the accountancy profession. So, accountants beware!