Back dating vat
E:  For the first year of VAT registration you may apply a 1% deduction        to your FRS Rate. However the FRS has it own Cash Based Method which for most businesses is exactly the same as the Cash Basis for the normal VAT Scheme.
If you are registering for VAT and FRS at the same time, your VAT/FRS registration can often be backdated to the point when you request your VAT registration to commence. If your business is already VAT registered, and you want to switch to FRS, you would normally change from the start of the last unfiled VAT Return.
We will have more details in the March 2017 Budget.
You pay over to HMRC a VAT amount calculated on your gross sales (ie.
sales 20% VAT) multiplied by the FRS Rate for your type of business.
In April 2017, there is a major change to the Flat Rate Scheme (FRS) affecting low "cost" businesses.
From 1 April 2017, HMRC will introduce a new category, of a "limited cost trader", with a flat rate of 16.5%.