More than 282,000 working families used a Tax-Free Childcare (TFC) account during March, according to figures from HMRC.

HMRC said that it is the highest recorded number of families in any one month since the scheme was launched in April 2017. These families received a share of more than £33 million in government top-up payments for their childcare.

The TFC scheme can be used to help pay for accredited holiday clubs, childminders or sports activities – enabling parents and carers to save money on the costs of childcare.

The TFC initiative is available for children aged up to 11, or 17 if the child has a disability. For every £8 deposited into an account, families will receive an additional £2 in government top-up, capped at £500 every three months, or £1,000 if the child is disabled.

Myrtle Lloyd, Director General for Customer Services at HMRC, said: 'We want to help kids stay active this summer, whether they are going to summer holiday clubs or a childminder. A childcare top-up will go a long way towards helping parents plan and pay for summer activities to keep their kids happy and healthy.'

More details and registration for TFC can be found here.

Royal Assent of Finance Act 2021 was granted on 10 June, bringing the extended loss carry-back, super-deduction and other measures into force.

The Act had not been expected to become law until July, but now Royal Assent has been granted it will prompt the issue of commencement orders for provisions, including the 130% capital allowances super-deduction for companies; the Plastic Packaging Tax; penalties for late filing of tax returns; penalties for late payment of tax; and VAT late payment and repayment interest.

The extended loss carry back provisions apply to trading losses arising in company accounting periods ending between 1 April 2020 and 31 March 2022 and trading losses of unincorporated businesses of the 2020/21 and 2021/22 tax years.

HMRC is now expected to update its guidance on the mechanism for making de minimis claims (standalone or group company with losses capable of providing relief up to a maximum of £200,000).

Royal Assent also triggers amendments to HMRC's civil information powers by introducing a Financial Institution Notice (FIN), which makes it easier for HMRC to obtain information about a taxpayer from a third party, such as the taxpayer's bank or building society.

The four-week delay to the easing of lockdown in England has prompted business groups to call for further government support for businesses.

The Confederation of British Industry (CBI) said 'although the delay was regrettable it is understandable' as a postponement is preferable to lifting lockdown and then reimposing restrictions. However, the CBI also warned of damage to the hospitality sector, leisure and live events.

Tony Danker, Director General of the CBI, said: 'Continuing restrictions means the government must urgently revisit the support available. That starts with holding back on the tapering of business rates relief and extending the commercial rent moratorium for those sectors most impacted. A solution must also be found for the hard-pressed international travel sector.'

Meanwhile, Mike Cherry, National Chairman of the Federation of Small Businesses (FSB), said: 'Despite a successful vaccine programme and all the best efforts from small firms, they will be bitterly disappointed to find they face at least another month of restrictions.

'These sectors and their supply chains need ambitious and targeted support. The 19 July must be the final date for when these restrictions will be lifted.'

Claire Walker, Co-Executive Director of the British Chambers of Commerce (BCC) called for an extension to VAT deferrals and business rates relief. She stated: 'Government should work with lenders to ensure that appropriate forbearance is in place for those who have used government lending schemes and already started to repay their loan without being able to open fully.'

HMRC has announced that it will recover over £1 billion in fraudulently claimed furlough cash over the next two years.

UK employers have claimed more than £60 billion in furlough funds since the introduction of the Coronavirus Job Retention Scheme (CJRS) in March 2020. The CJRS was extended in the 2021 Budget until 30 September.

Data published by the Office for National Statistics (ONS) recently revealed that workers in the hospitality sector were most likely to still be on furlough. At peak use of the CJRS, 91% of pub and bar staff were furloughed. 

HMRC stated that it intends to launch a handful of criminal investigations into suspected cases of serious CJRS fraud.

A spokesperson for HMRC said: 'The CJRS has provided a lifeline to millions of people across the UK and fraudulent claims are unacceptable. It is taxpayers' money and fraud limits our ability to support people and deprives public services of essential funding.

'We'd ask anyone concerned that an employer might be abusing the scheme, or anyone with information about suspected fraud, to please contact us. All information is assessed and the most appropriate course of action taken.'

The UK's current research and development (R&D) tax relief regime offers valuable support to companies but could be improved, according to a survey carried out by the Institute of Chartered Accountants in England and Wales (ICAEW).

The ICAEW's survey found that the R&D tax relief regime could be improved by switching to regular periodic payments; incorporating it into the wider subsidy system; and by offering support tailored to specific industries' needs.

Survey respondents outlined a desire for 'more regular support closer to R&D investment spend', as opposed to a one-off payment after the completion of the tax return process.

Respondents also suggested that the R&D tax relief regime could be aligned with the forthcoming Making Tax Digital for Corporation Tax (MTD for CT) initiative. This would allow claims to be made digitally every quarter, alongside the required MTD reports.

Additionally, the ICAEW's Tax Faculty highlighted the need to update the definition of R&D used in the regime in order to 'acknowledge the technological and commercial reality of the 2020s'.

The ICAEW's report can be read in full here.

Employers of all sizes in England can now apply for £3,000 in extra funding to help them take on new apprentices, the government has confirmed.

The boost to the apprenticeship incentive scheme was confirmed by Chancellor Rishi Sunak in the Budget in March.

The claims portal opened on 1 June and businesses can apply for £3,000 for each new apprentice hired as a new employee from 1 April until 30 September.

The cash incentive is designed to help more employers invest in the skilled workforce they need for the future as part of the government's Plan for Jobs.

The government says the scheme builds on action already underway to protect, support and create more jobs while bringing the UK's skills and education system closer to the employer market.

The Chancellor commented: 'Young people have been hit especially hard by the crisis – which is why our Plan for Jobs, launched last year, is focused on helping them get the skills they need to get the jobs they want.

'By boosting the cash incentives for our apprenticeship scheme we're improving opportunities for young people to stay in and find work – this could not be more important in our economy's recovery.'

Find out more and apply here.

The Office of Tax Simplification (OTS) is set to explore the benefits, costs and wider implications of changing the date of the end of the tax year for individuals.

The review will focus on the implications of moving the tax year end date from 5 April to 31 March or 31 December.

The UK's tax year for individuals currently runs from 6 April to the following 5 April. This is for historical reasons and has been the case for hundreds of years; the UK's modern tax system and infrastructure have been developed around this date.

The OTS said: 'By contrast, accounting systems used by businesses have been developed around month and quarter ends. Across businesses and internationally, it is common to account to a month end date.

'Many countries use 31 December for their government accounts and the two most popular accounting dates for multinationals are the calendar year end date of 31 December and 31 March. The UK financial year for government accounting and for companies runs from 1 April to 31 March.'

The OTS is now undertaking a review to analyse the costs and benefits of changing the date of the tax year end and will publish a report over the summer of 2021. 

While primarily addressing tax simplification issues, the review will also take account of the implications of any change in other areas, such as in relation to tax credits and benefits.

The G7's finance ministers have announced a historic international agreement on global tax reform.

Following years of discussions, finance ministers agreed to reforms, which they say will see multinationals pay their fair share of tax in the countries in which they do business. The ministers also agreed to the principle of a global minimum rate that ensures multinationals pay tax of at least 15% in each country they operate in.

To ensure markets play their part in the transition to net zero, the G7 also made a commitment to make it mandatory for firms to report the climate impact of their investment decisions and set down concrete steps to crack down on environmental criminals.

Commenting on the agreement, Rain Newton-Smith, Chief Economist at the Confederation of British Industry (CBI), said: 'Finding agreement on international tax at the G7 is no mean feat and will light the touchpaper for the wider multilateral process at the OECD.

'Consensus on corporation tax means that a real sense of momentum can now build ahead of the G20 later in the year, helping to pave the way forward for an international tax system that is simpler, more sustainable and easier to comply with.

'Businesses have worked hard with the OECD in recent years to move the process forward and will continue to do so to achieve a global tax system fit for the 21st century.'

Many small businesses will soon be required to begin repaying loans taken out under the government's Bounce Back Loan Scheme (BBLS).

The BBLS helped to support businesses during the coronavirus (COVID-19) pandemic, and permitted firms to apply for a minimum of £2,000, up to a maximum of £50,000, or 25% of business turnover, with the government paying the interest for the first 12 months.

The BBLS closed to new applications and top-up applications on 31 March 2021.

Many businesses have asked banks for more time to repay their BBLS loans. Some of these businesses have opted to extend the loan term from six years to ten years. However, for those firms who have stuck to the original terms, they are required to begin repaying after the 12-month payment holiday.

Businesses can choose to use the government's Pay as You Grow initiative, which gives firms the option to extend the length of their loan from six to ten years; make interest-only payments for six months; or pause repayments entirely for up to six months.

The Federation of Small Businesses (FSB) has urged banks to contact their customers 'in order to make them aware of Pay as You Grow' and how to make best use of it.