ICO Fee. Do I need to pay this?

Hello. I'm a freelance designer working as a limited company. I sub-contract work out to other freelancers too. I've recently had a letter from ICO saying I need to pay a fee regarding data security and whatnot. I know the company address, phone number and email of the people I deal directly and nothing else.
Do I need to pay this? What am I getting for this fee? Why do I need to pay this? 
Can someone please advise? Thanks in advance. Andy.

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