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Introduction

This content covers guidance relating to the coronavirus (COVID-19) pandemic.

There has been some confusion about the interaction between the employment allowance and the coronavirus job retention scheme (CJRS).

This article discusses how the two sets of rules work together and considers the following potential issues that may have arisen in practice:

1. Ìý

   •ÌýÌýÌýÌý claimed the employment allowance and made reduced CJRS national insurance contributions (NIC) grant claim

2. Ìý

   •ÌýÌýÌýÌý claimed the employment allowance and overclaimed CJRS NIC grant

3. Ìý

   •ÌýÌýÌýÌý avoiding double relief where the claim for employment allowance is made mid-tax year

4. Ìý

   •ÌýÌýÌýÌý insufficient NIC liability to utilise employment allowance in the rest of the tax year

Before covering the interaction, it is worth summarising both provisions.

Coronavirus job retention scheme (CJRS)

Under the CJRS, employers may be able to obtain a grant from the Government up to a limit to cover a percentage of the total of¹:

1. Ìý

   •ÌýÌýÌýÌý furloughed employees' wages (up to a cap)

2. Ìý

   •