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Business Services  •  Coronavirus Advice  •  Payroll Tax  •  Small Business

Furlough Scheme Warning – Don’t double-count employers’ NICs!

By RJP LLP on 11 May 2020

When completing your applications for the Coronavirus Job Retention Scheme you will be including the cost of the employers’ NICs for furloughed employees in your claim.

However you need to be careful that you are not claiming employers’ NICs that have already been covered by the government.

This applies to all businesses that pay less than £100,000 in NICs each year who can apply for relief of up to £4,000; care needs to be taken to ensure that you are not claiming a refund of employers’ NICs under the furlough scheme that are also covered by this refund scheme.

Currently HMRC are paying furlough scheme claims without checking them, but any inadvertent overclaims will be discovered later and will need to be repaid.

Although HMRC are currently working on a process for claims to be amended after submission where errors have been made, it is probably better not to be faced with any unexpected bills at such a difficult time!

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When completing your applications for the Coronavirus Job Retention Scheme you will be including the cost of the employers’ NICs for furloughed employees in your claim.

However you need to be careful that you are not claiming employers’ NICs that have already been covered by the government.

This applies to all businesses that pay less than £100,000 in NICs each year who can apply for relief of up to £4,000; care needs to be taken to ensure that you are not claiming a refund of employers’ NICs under the furlough scheme that are also covered by this refund scheme.

Currently HMRC are paying furlough scheme claims without checking them, but any inadvertent overclaims will be discovered later and will need to be repaid.

Although HMRC are currently working on a process for claims to be amended after submission where errors have been made, it is probably better not to be faced with any unexpected bills at such a difficult time!