De you remember this article - Confusion over employment allowances and furlough - https://www.accountingweb.co.uk/tax/business-tax/confusion-over-employme...
Many must have had HMRC checks in PAYE and furlough. Not sure what your outcome was. We had the same issue per HMRC check where the HMRC inspector was adamant that the client was not entitled to Employment Allowance.
We said to her that her own technical team over chat said to us that it is ok to claim this the way we did post furlough as long as the overall PAYE&NIC is over £4k for 12 months.
HMRC inspector was being difficult and said that the policy team sitting above technical team (never know a policy team existed!) said what we did was was incorrect and hence issued us with an assessment and a massive penalty.
We appealed to the trinunal and today we receive a reply in our favour.
Fellow accountants, do not give in to HMRC inspector, they are poorly managed and have no knowledge of how PAYE works but have been assigned a task to deal with.
Good afternoon Mr ,
Following a notification to me after the appeal to the tribunal regarding the assessment of £xxx in relation to the employer allowance, I have been tasked to reduce the total assessment by that amount.
I will reduce the total assessment to £xxxx
Your client should pay the sum of £2500.58 assessment after I have written to him.
I will send a letter to your client in due course in relation to the revised assessment.
I will send a HRA document to your client again as a reminder with my letter of revised assessment.
There may be a penalty on this assessment. We will write separately about the penalty if it becomes due.
I trust you and your client will be pleased with this outcome.