The Institute of Directors (IoD) has called for the government to extend emergency coronavirus (COVID-19) insolvency measures to prevent company collapses and job losses.

Directors have a duty to cease trading if their company is facing insolvency, and could face financial or legal liabilities if they seek finance instead. In June, the government introduced emergency COVID-19 legislation to suspend the threat of liability for such 'wrongful trading'.

This protection expires on 30 September. However, the IoD is warning that failure to extend the measure could lead to 'entirely preventable company collapses'. The business group is calling for the government to extend the measure until the end of 2020 to aid the economic recovery and to help safeguard jobs.

'The recovery has begun, but businesses are not out of the woods yet,' said Roger Barker, Director of Policy and Corporate Governance at the IoD.

'The government has rightly supported business survival, and emergency legislation in June was an important step. The need for this support has only intensified as we enter the next stage of the recovery. Firms trying to adjust will face steep costs and limited revenues.'

HMRC has revealed that almost £3.5 billion in Coronavirus Job Retention Scheme (CJRS) payments have been claimed fraudulently or paid out in error.

HMRC told the Public Accounts Committee (PAC) that it estimates that between 5% and 10% of CJRS funds have been provided in error. According to the PAC, in 2019 £30 billion in tax was lost as a result of taxpayer error and fraud.

HMRC said it intends to target individuals who made fraudulent CJRS claims, rather than penalise employers who made legitimate mistakes in compiling their claims.

Commenting on the issue, Jim Harra, Chief Executive of HMRC, said: 'We have made an assumption for the purposes of our planning that the error and fraud rate in this scheme could be between 5% and 10%. That will range from deliberate fraud through to error.

'Although we will expect employers to check their claims and repay any excess amount, what we will be focusing on is tackling abuse and fraud.'

The Federation of Small Businesses (FSB) has urged the government to provide small businesses with Brexit transition vouchers as the latest round of withdrawal talks commences.

The business group called for government Brexit negotiators to agree a small business-friendly deal 'swiftly'. It said that currently the draft terms of the EU deal don't contain a dedicated small business chapter outlining how the deal will benefit firms of all sizes.

The FSB said that the government needs to step in with 'substantial financial support' to assist with Brexit transition preparations, given that small firms have been 'flat out' managing coronavirus-linked disruption for the past six months.

Commenting on the matter, Mike Cherry, National Chairman of the FSB, said: 'The transition period will soon be at an end but the small firms that make up 99% of our business community still have no clear sense of what they'll be transitioning to.

'The economy is in a very different place today compared to the last time we were told to prepare for a no-deal outcome. Small firms don't have the time or money to get across new bureaucracy or stockpile.'

The Treasury has published a consultation on reforms to the VAT refund rules.

Under the current VAT rules, government departments, devolved administrations, the NHS and Highways England are eligible for VAT refunds under Section 41 of the VAT Act 1994.

However, unlike commercial organisations, public sector organisations do not carry out business activities and therefore cannot reclaim VAT incurred on the goods and services they purchase.

The Treasury believes that VAT could act as a barrier to using more efficient and effective means of delivering a desired policy outcome. Section 41 was introduced to remove VAT from being a factor in decision making and enables the public sector to focus on making procurement choices that reflect true value for money for the Exchequer.

The Treasury is seeking to extend the scope of Section 41 to permit full refunds of the VAT incurred on all goods and services incurred during the course of non-business activities for those organisations currently falling within the scope of the Section.

The consultation closes on 19 November 2020 and the policy paper can be found here.

Chancellor Rishi Sunak's plan to raise the national insurance contributions (NICs) paid by self-employed workers would be unjust, the Association of Independent Professionals and the Self-Employed (IPSE) has claimed.

According to reports, the Chancellor is considering bringing the 9% Class 4 NICs rate paid by the self-employed into line with the 12% rate for employees. It is one of the ways the Treasury is reported to be looking at raising revenue after spending billions on its coronavirus (COVID-19) support packages.

When Mr Sunak announced the Self-employment Income Support Scheme (SEISS) in March, he warned: 'If we all want to benefit from state support, we must all pay equally in the future.'

IPSE has argued that making the 1.5 million self-employed pay for support they did not get would be unfair. It also said that given the slump in the number of self-employed individuals it would also be uneconomical to squeeze these workers further.

Andy Chamberlain, Director of Policy at IPSE, said: 'The last few months have financially hammered the self-employed, with over two-thirds seeing a drop in demand for their work. Government support was some help – to a proportion of the self-employed.

'More noticeable, though, was the 1.5 million who fell through the gaps, leaving many financially devastated. The idea that this 1.5 million should now suffer a drastic tax hike to pay for support they never got is unjust, uneconomical – and unbelievable. If the government is really considering this, it must stop now.'

Research carried out by the Resolution Foundation has revealed that 800,000 workers are being 'under-enrolled' in company pension schemes and are not receiving their legal employer pension contributions.

The latest report from the Resolution Foundation's ongoing investigation into labour market enforcement considers the extent of non-compliance with the pensions automatic enrolment scheme, and whether there are 'under-enrolment' hotspots that 'require closer scrutiny'.

The think tank found that the pensions auto-enrolment scheme has been a success overall, with more than ten million workers joining company schemes since 2012.

However, 'under-enrolment' is particularly acute among agency and minimum wage workers, according to the Resolution Foundation.

Hannah Slaughter, Economist at the Resolution Foundation, said: 'Around 800,000 workers across the economy are currently 'under-enrolled', and the problem is particularly acute among agency workers and those on the minimum wage, where around one in ten workers are not getting the pensions they deserve.

'Now is the time for The Pensions Regulator to step up its enforcement – supported by greater resources – as part of a wider agenda for the government to make Britain's post-COVID labour market a better environment for workers, and a far tougher one for the small minority of firms that break the law.'

The government's £2 billion Kickstart Scheme is now open for employer applications.

The scheme is part of the Plan for Jobs announced during Chancellor Rishi Sunak's July Summer Economic Update.

The Kickstart Scheme aims to create work placements for young people who are at risk of becoming unemployed for the long-term. Businesses can join the scheme, with the government paying employers £1,500 to help set up support and training.

Selected out-of-work young people will be offered six-month work placements for at least 25 hours a week to help them gain experience, skills and confidence. The scheme is designed to be a steppingstone to further employment.

Employers will receive funding for 100% of the relevant National Minimum Wage (NMW) for 25 hours a week, plus associated employer national insurance contributions (NICs) and employer minimum auto-enrolment pension contributions.

The Chancellor said: 'This isn't just about kickstarting our country's economy – it is an opportunity to kickstart the careers of thousands of young people who could otherwise be left behind as a result of the pandemic.

'The scheme will open the door to a brighter future for a new generation and ensure the UK bounces back stronger as a country.'

More information on the scheme can be found here.

The fee for plastic shopping bags in England will be doubled to 10p and extended to all shops from April 2021.

Small retailers - those employing 250 people or fewer - will no longer be exempt, the Department for Environment, Food and Rural Affairs (Defra) said.

According to Defra, since the charge was first introduced in 2015 it has successfully prevented billions of plastic bags being sold and ending up in the ocean and environment.

Government data shows the current levy, which stands at 5p and applies to any retailer employing 250 or more people, has led to a 95% cut in plastic bag sales in major supermarkets since 2015.

Commenting on the announcement, Environment Secretary George Eustice, said: 'We have all seen the devastating impact plastic bags have on the oceans and on precious marine wildlife, which is why we are taking bold and ambitious action to tackle this issue head on.

'The UK is already a world-leader in this global effort, and our carrier bag charge has been hugely successful in taking billions of harmful plastic bags out of circulation. But we want to go further by extending this to all retailers so we can continue to cut unnecessary waste and build back greener.'

The Institute of Chartered Accountants in England and Wales (ICAEW) has warned that genuine research and development (R&D) businesses could be impacted by government proposals to combat tax relief abuse.

In its consultation 'preventing abuse of the R&D tax relief for SMEs', the government stated that it aims to reduce the number of fraudulent claims for R&D relief and specifically target individuals exploiting the tax repayment available.

The proposed measures will limit claims for a payable R&D credit by reference to a claimant's Pay as You Earn (PAYE) liabilities.

The ICAEW stated that it is concerned that some of the proposed measures may increase the administrative burdens on businesses that comply, and potentially preclude genuine claims.

The ICAEW said it welcomes HMRC's proposal that claims under £20,000 will not be affected by the R&D credit cap. According to the ICAEW, this will help to 'mitigate the impact of the proposals significantly'.

However, the ICAEW stressed that it is unclear how this measure will prevent larger volumes of lower value fraudulent claims.

HMRC's consultation on the scope of R&D expenditure closes on 13 October.