Significant changes have been announced for the amount of VAT that many small businesses will have to pay.

This will affect businesses that use the VAT Flat Rate Scheme but which spend very little on goods, including raw materials - such as firms providing services.

The VAT Flat Rate Scheme simplifies businesses^ record keeping, and makes it easy to work out the VAT they have to pay.

The proposed changes are the most important element of the Autumn Statement for this type of business.

For further information on how it works and who it will effect please visit http://www.bbc.co.uk/news/business-38084493