"The said Employer also paid part of the consulting income."

My comment was that this seems almost like a Commission agreement, and not a claw back. The deduction would be general business expense in the year paid, not repayment credit under claim of right. And a customer asking for their money back is a refund, not a claim of right.

"The claim was part claw back and part claim of right."

It seems like you have a lot of moving parts to segregate.