On 22 October Chancellor Rishi Sunak announced increases to the coronavirus (COVID-19) financial support measures first outlined in the Winter Economy Plan.

The Chancellor has made amendments to the Job Support Scheme (JSS), which is set to take effect from 1 November. When originally announced, the JSS saw employers paying a third of their employees' wages for hours not worked, and required employers to be working 33% of their normal hours.

The Chancellor's latest announcement has reduced the employer contribution to those unworked hours to just 5%, and reduced the minimum hours requirements to 20%, so employees working just one day a week will be eligible. That means that if someone was being paid £587 for their unworked hours, the government would be contributing £543 and their employer only £44.

Additionally, the announcement has increased the amount of profits covered by the two forthcoming self-employed grants from 20% to 40%, meaning the maximum grant will increase from £1,875 to £3,750.

In regard to business grants, the Chancellor also announced approved additional funding to support cash grants of up to £2,100 per month primarily for businesses in the hospitality, accommodation and leisure sector who may be adversely impacted by the COVID-19 restrictions in high-alert level areas.

Commenting on the changes, the Chancellor said: 'I've always said that we must be ready to adapt our financial support as the situation evolves. These changes mean that our support will reach many more people and protect many more jobs.

'I know that the introduction of further restrictions has left many people worried for themselves, their families and communities. I hope the government's stepped-up support can be part of the country pulling together in the coming months.'

The Institute of Directors (IoD) has outlined reforms to the Prompt Payment Code.

The IoD recently submitted its views to the government on how best to strengthen the Code. These include establishing a transparent process for dealing with Code suspensions, removals and reinstatements, and implementing a traffic light system to make it easier for business leaders to identify companies with poor payment records.

According to the business group, the major issue in regard to late payments relates to culture and the leverage big businesses have over small suppliers. The IoD stated that small business owners are often reluctant to report a client that pays late as they would not want to damage the business relationship and risk losing future custom.

Administrators of the Prompt Payment Code should be able to approach signatories on the basis of an anonymous complaint by a third party to discuss payment practices, the Institute argued.

It has called for the government to bring forward reforms to the Code and create 'a more responsible payment culture'.

HMRC has urged businesses to make sure they are prepared for new customs and tax rules so that they can continue to trade with the EU from 1 January 2021.

In a letter to VAT-registered businesses, HMRC stated that it is 'really important' that firms act now. Businesses will not be able to trade with the EU from 1 January 2021 if they do not have the correct processes, contracts and agreements in place.

Businesses will need to make import and export declarations to move goods between the UK and the EU. From 1 January 2021, if firms send goods from the UK to customers in the EU, they will be responsible for completing export declarations for those goods. If businesses import goods from the EU that are on the controlled goods list (such as animal products, alcohol or tobacco or firearms), they will have to make declarations from 1 January 2021.

Business Secretary Alok Sharma said: 'Businesses must act now to ensure they are ready for the UK's new start as an independent trading nation once more.

'There will be no extension to the transition period, so there is no time to waste.'

The letter can be viewed in full here.

The Public Accounts Committee (PAC) has urged the government to give a 'more honest' picture of the likely levels of the UK tax gap.

The tax gap is the gap between the tax that should be paid on the UK's economic activity and the tax that HMRC actually collects. According to the PAC, the gap has a wide range of causes, including deliberate tax evasion and accidental taxpayer error.

HMRC's most recent estimate of the tax gap was £31 billion in 2018/19. The PAC stated that there is a wide range of estimates that render this figure 'less than useful'. The Committee said that HMRC should not be using this number without explaining its limitations.

Additionally, the PAC has accused HMRC of failing to entirely set out the relative size of the tax gap for different sectors of the UK economy.

Commenting on the matter, Meg Hillier, Chair of the PAC, said: 'Best estimates really won't do when you're talking about multi-billions of pounds that could be being collected to support public services.

'We expect HMRC to be doing more to collect the tax owed, whether from individuals or companies. With families and businesses straining every sinew to stay afloat it is just as critical that the government collects tax effectively and efficiently as it is that the government spends money wisely.'

The government has outlined plans to protect the UK's cash system and ensure people have easy access to cash.

The Treasury stated that although cash use is declining, with people increasingly choosing cards, mobiles and e-wallets to make payments, it remains crucial for groups across the UK, including the elderly and the vulnerable. 

As part of the proposals, cashback would be offered at shops without consumers having to make a purchase. Additionally, the Financial Conduct Authority (FCA) would be given overall responsibility for the UK's retail cash system to protect consumers and small and medium-sized enterprises (SMEs).

Commenting on the issue, John Glen, Economic Secretary to the Treasury, said: 'We know that cash is still really important for consumers and businesses – that's why we promised to legislate to protect access for everyone who needs it.

'We want to harness the same creative thinking that has driven innovation in digital payments to maintain the UK's cash system and make sure people can easily access cash in their local area.'

The Treasury is seeking views on the plans from consumer organisations, businesses, financial institutions, providers of ATM and payment services and others through a call for evidence. This can be found here.

The government has launched a new coronavirus (COVID-19) fraud hotline in conjunction with independent charity Crimestoppers.

Members of the public can now call the new fraud hotline anonymously and free of charge to report suspected fraudulent activity in regard to COVID-19 loans and grants.

The government stated that a minority of individuals have been abusing COVID-19 support schemes by claiming illegally. It has urged the public to look out for the 'tell tale signs' of fraud, including unusual buying activity by companies and individuals and cold calling by individuals falsely claiming they are from the government.

Mark Hallas, Chief Executive of Crimestoppers, said: 'Fraud against the public purse denies access to vital funds that benefit us all.

'The COVID Fraud Hotline is open 24/7, 365 days a year on 0800 587 5030 or fill in the simple and secure anonymous form at covidfraudhotline.org. You'll be doing the right thing to help ensure the public purse is protected from fraudsters.'

HMRC has received over 54,800 claims from customers using a new online portal that allows employees to claim tax relief for working at home.

The portal, which was launched on 1 October, has been set up to process tax relief on additional expenses for employed workers who have been told to work from home by their employer during the coronavirus (COVID-19) pandemic.

From 6 April 2020, employers have been able to pay employees up to £6 a week tax-free to cover additional costs if they have had to work from home.

Employees who have not received the working from home expenses payment direct from their employer can apply to receive the tax relief from HMRC.

HMRC has also confirmed that the £6 per week is available in full, even if an employee splits their time between home and the office.

Commenting on the portal, HMRC's Interim Director General of Customer Services, Karl Khan, said: 'We want everyone to get the money that they are entitled to, so we've made the online service as easy to use as we can – it takes just a few minutes to make a claim.'

The portal can be found at www.gov.uk/tax-relief-for-employees/working-at-home.

The Institute for Fiscal Studies (IFS) has suggested that the UK will require tax rises of £40 billion or more per yearduring the middle years of this decade to stop debt spiralling upwards as a result of the coronavirus (COVID-19) pandemic.

According to new research from the IFS, government borrowing this year will reach a level never before seen in the UK outside of the two world wars of the 20th century.

Under a central scenario, in four years' time the UK economy would be 5% smaller than was anticipated in March. This would mean a £100 billion hit to public finances from lower tax revenues, even before any extra spending.

The Institute's figures do not take into account increased spending pressures on the NHS, social care and the COVID-19 track and trace system.

'This government has chosen to pump an additional £200 billion into the economy to support jobs, businesses and incomes this year,' said Paul Johnson, Director of the IFS.

'Unfortunately, none of this will be enough fully to protect the economy into the medium run. We are heading for a significantly smaller economy than expected pre-COVID, and probably higher spending too. Without action, debt – already at its highest level in more than half a century – would carry on rising. Tax rises, and big ones, look all but inevitable, though likely not until the middle years of this decade.'

Think tank the Resolution Foundation has suggested that the coronavirus (COVID-19) has created a 'U-shaped crisis', with young adults and pensioners most likely to have stopped working during the pandemic.

A report by the Foundation revealed that over half of those aged between 18 and 24 and 65 and over who were employed before the COVID-19 pandemic have since stopped working, either by being furloughed or by losing their jobs altogether, compared to fewer than a third of those aged 30 to 50.

The report also showed that the impact of the pandemic on people's living conditions has 'fallen most heavily on young people'.

Commenting on the matter, David Willetts, President of the Resolution Foundation, said: 'The pandemic has already cost tens of thousands of lives, millions of people their livelihoods and upended everyone's daily lives.

'For younger generations, this crisis has created wider problems. The growth of the high-cost, low-security private rental sector has led to missed housing payments and cramped living spaces during lockdown.

'With infections rising again, the COVID crisis is sadly far from over. That means the risk of losing a COVID generation to long-term youth unemployment is real. But there is plenty that policy makers can do to prevent it – from extra training provision to a greater focus on creating new jobs to support people out of this crisis.'