The government will publish guidance for businesses on tariffs and proposals for the Irish border in the event of no deal on Wednesday morning.
Under a temporary scheme 87% of imports by value would be eligible for zero-tariff access - up from 80% at present.
The government also announced it will not introduce any new checks or controls, or require customs declarations for any goods moving from across the border from Ireland to Northern Ireland if the United Kingdom leaves the European Union without a deal.
What is Wednesday's vote on?
That means ministers and MPs can vote with their conscience rather than following the orders of party managers - an unusual move for a vote on a major policy.
"The Prime Minister's negotiations have failed".
In response, May said only that there would be "hard choices" for MPs, both on the vote over no deal, and if that is ruled out, a vote on Thursday over whether to extend article 50.
Walker, who is also chairman of the Commons procedure committee, said if MPs reject her deal the prime minister could call an election at the end of this week to take place in seven weeks time.More news: Senate rejection of Trump border emergency no longer certain
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Ireland and the 26 other European Union states would also need to agree unanimously to any extension to the Brexit negotiation process.
"I've always said that is not a viable option and in 2017 I was re-elected on a manifesto that clearly stated that I wouldn't support leaving without a deal". "Last night's vote finished off her deal".
Although the 149 margin was reduced from the record 230-vote defeat of the first "meaningful vote" in January, Mrs May was left far adrift from a majority with just 17 days to go to the scheduled date of Brexit on March 29.
What isn't clear is how the prime minister actually intends to dig herself out of this terrible political hole.
He added the Commons needs to listen to the country, including workers and European Union nationals who are fearful for their futures, saying of Mrs May: "She needs now to show leadership".
May responded: "The deal that he's proposing has been rejected several times by this house". "We are not going to have a new leader", he said.
Divisions between the different wings of the Cabinet were on show as MPs considered rejecting a no-deal Brexit.
Ms Phillips said: "To me she looks like a rabbit in the headlights, she looks like someone who isn't actually willing to say the real facts and say this is really bad for the country".
"Instead of making any genuine attempt to work constructively with others, the Prime Minister spent the last two and a half years pandering to the DUP and her own increasingly right-wing backbenchers, all while ignoring the concerns of the devolved governments".