I have one client where the Employment allowance was not claimed following the IACEW guidance whilst the x5 staff were on Furlough.
They have come back to work in July and so we have now claimed the EA but on the software it retrospectively applies the EA claim to months 1-3 where it was originally disclaimed and so it shows on the system that there is now an overpayment to HMRC in those months as the full amounts were paid including Ers NIC.
It means no payment due to HMRC for July as this overpayment is used but my query/concern/issue is that does this now mean that we have to repay the ERs NI we received under the CJRS or do we get to retain that benefit and then get the full £4k EA on top of that ?
I have read (Croner Covid-19 pages) that maybe they should deduct the amount received under the CJRS from the EA being claimed (maybe I am misreading that but it was here halfway down https://www.cronertaxwise.com/community/coronavirus-covid-19-furloughed-employees/ )
Just want to make sure we get this right so any pointers greatly received as we dont want to overclaim