For many of us running small and micro-businesses, HMRC’s VAT Flat Rate Scheme (FRS) has provided a helpful, simplified means of calculating and submitting our VAT returns and dues.  For those with modest input costs to our business, there can even been a small tax advantage when using the scheme.  However, this situation is changing from 1 April 2017, with new rules for “limited cost traders” as HMRC seeks to tackle “aggressive abuse” of the FRS.

If you are, or think you might be a limited cost trader, you need to get yourself prepared for the imminent change.