The United Kingdom (UK) standard VAT Taxation rate returned to 17.5% on 1 January 2010 (from 15%).
With effect from 1 April 2010, the UK tax authorities are introducing a requirement that VAT registered businesses must submit their periodic VAT returns online. Changes are also planned for the penalty for late VAT registration. If the liability to register for VAT arises before 1 April 2010, the penalty rate depends on the length of the relevant period, rising from 5% to 15% of the VAT underpaid. With effect from 1 April 2010, if the liability to register arises that date, the penalty rate that applies may range from 30% (in most cases) to 100% (with respect to deliberate and concealed acts) of the VAT due.
However, the penalty may be mitigated if the business discloses the failure to register to the VAT authorities.
