Pro-EU group Best for Britain is behind the scheme and has published a new report on the issue. The group wants British MPs to vote down Mrs May’s Brexit deal when it finally arrives at Parliament in January. They then want a no deal outcome struck out.
MPs could also pass an amendment which stops the Government from collecting some taxes.
The report says: “The clearest opportunity for replacing no deal as the default option is through political pressure via the Finance Bill.
“The key point is that income tax and corporation tax are annual taxes, authorisation of which runs out at the end of the tax year.”
John Bercow will decide on whether the amendment can be passed.
It comes as Jeremy Corbyn demanded Parliament is recalled to vote on Brexit.
The Labour leader said: “I want us to have a vote as soon as possible, that’s what I’ve been saying for the past two weeks, and if that means recalling Parliament to have the vote, let’s have it.
“But it looks to me the Government has once again reneged on that and tried to put it back another week.”
See below for updates
4pm update: MP warns of potential dangers of the transition period for small businesses
Hundreds of thousands of small businesses could be forced to pay VAT for the first time after Brexit if the UK enters the transition period after March 2019 as Brussels is preparing to reduce the threshold at which businesses start paying the tax from a turnover of £85,000 to £76,700.
This move, which aims at “harmonising” tax systems, could cost millions to small businesses even if the UK leaves the EU.
In a report the MPs said: “If the Agreement is ratified and the Directive took effect during the transition, the Treasury would have to transpose it into UK law.
“This could have significant implications for small businesses.
“It is particularly concerning in this regard that the UK will lose its veto over the proposal on 29 March next year, but it could nevertheless apply here in full.”
3pm update: British ships are shunning the Union Jack to fit in with EU financial regulations
Southampton based P&O has raised the flag of Cyprus instead of the red, white and blue Union Jack on two of their cross-channel ferries to ensure their ships meet European Union tax arrangements.
The British shipping and cruise giant has pre-empted the change in regulations after March 29 and has said it is holding a review with the possibility of switching the flags on their remaining four ships that sail between England and France.
The company, which prides itself on its near 200-year-old British heritage by displaying a giant painted Union Jack on the bow of their cruise liners, said Brexit is to blame for them rejecting the British flag in favour of the Cypriot standard.
A spokesman for P&O said: “The change is being made to preserve the tonnage tax financing arrangements, under which the ships should remain flagged in an EU member state.”
2pm update: Government accused of “hiding unpleasant realities” of Brexit from the public
A new analysis suggested the Department for Exiting the European Union (DExEU) has answered only a fifth of Freedom of Information requests in full.
The research, carried out by the People’s Vote campaign for a second Brexit referendum, found the DExEU refused to release any information for more than half of all requests, answering in full 21 percent of those issued between July 2016 and June 2017.
The Cabinet Office, Department for International Trade, and the Foreign and Commonwealth Office, which all also deal with Brexit, answered 26, 25 and 23 percent respectively of requests in full.
Labour’s Peter Kyle, a supporter of the People’s Vote campaign, accused the Government of “lack of transparency” over Brexit, and added: “The Government departments charged with dealing directly with Brexit are deliberately obfuscating and hiding the many unpleasant realities of the process from the public.
“The truth they’re trying to hide is that the Government’s proposed Brexit would severely harm our economy and is much worse than our existing deal inside the EU.
“I have written to the chief executive of the Civil Service to demand urgent answers, because the British public deserve to have all the information about Brexit available to them.
“Because of the failure to be open and transparent, the public have lost confidence in the Government’s ability to handle the Brexit process properly. That’s why more and more people are rallying behind the calls for a People’s Vote, to give the people the final say.”
1.30pm update: Spanish Prime Minister tells Britons living in Spain their rights will remain unchanged after Brexit
The Spanish Government has been working on measures to ensure UK citizens living in Spain will see their rights unchanged even if Britain leaves the European Union without a deal.
Upon reassuring the expats, Mr Pedro Sanchez said: “Their rights will be preserved whatever the scenario.”
Spain is the most popular European retirement destination for Britons and is home to around 300,000, mostly settled on the coast.
12pm: Jeremy Hunt demands EU concessions
Jeremy Hunt has warned the EU the only chance of the Brexit deal being voted through by Parliament is if Brussels calms down over the backstop demands.
The Foreign Secretary told Radio 4 this morning: “The EU has agreed that the backstop is temporary and what we need them to do is define what temporary is.
“So my view is this is not the time to be talking about what other major changes we might be faced with making because actually we can get this through.
“We can get this through, absolutely can.”
10.55am: May hits back at Corbyn over Brexit demands
Downing Street has hit back at Jeremy Corbyn after the Labour leader called for Parliament to return to vote on Mrs May’s deal.
A spokesman said: “Instead of making silly demands, Jeremy Corbyn should be honest with voters that he has no alternative plan, and only intends to frustrate Brexit – ultimately betraying the referendum result.”