We were hoping that the 12th June updated guidance would clarify once and for all whether it was acceptable to delay claiming the employment allowance until later on in the tax year, and in the mean time claim the CJRS grant for Employers NIC.
The guidance released is above, which states:
"Employers who delay their Employment Allowance claim and have unused Employment Allowance available at the end of the tax year can use this to reduce other tax costs. Employers who have received a grant for employer NICs costs through the scheme should deduct the amount of grant they have received from the amount of Employment Allowance they have left before they use it, if not doing so would result in receiving relief for the same cost twice. Attempting to get relief for the same costs twice is a fraud and may result in claims being investigated."
Depending on how you read this, this seems to suggest that (only) employers who have unused employment allowance left at the end of the tax year need to deduct the amount of Ers NIC grant they have claimed through the CJRS before they use it (against other taxes).
Therefore is delaying the claiming of the employment allowance to later on in the tax year (to offset later Ers NIC costs) and claiming the Ers NIC CJRS grant in the mean time still ok? (assuming you are not left with unused employment allowance at the end of the tax year which you want to offset against other taxes).
Or are they really saying that you need to deduct the Ers NIC grant from the employment allowance you claim in all cases, including against Ers NIC later on in the tax year (for example if you claimed £3k in Ers NIC grant you'd then only have £1k employment allowance to use later on in the tax year?)
Either way, it is poorly written and they could have been more helpful here in clarifying this issue so would be interested to hear anyone else's thoughts on this point.