VATREG37350 - Non-established taxable persons (NETPs): NETPs failing to register
An NETP who fails to register for VAT at the right time will be subject to the normal penalty regime.
The amount of the Failure to Notify penalty would, as usual, be linked to the business’s behaviour. Deliberate or concealed non-compliance attracts a higher penalty and cooperation and disclosure will reduce the penalty.
The business may not be liable to a penalty if it has a reasonable excuse for not complying with the rules.