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HMRC internal manual

Debt Management and Banking Manual

Debt and return pursuit: miscellaneous charges: WFTC / DPTC Regulation 12 determinations

What is a Regulation 12 Determination

The Tax Credits (Payment by Employers) Regulations 1999 allow an employer to apply for funding to pay tax credits. Any funding not used by the employer in this way will appear at the deduction year end as part of a P35 underpayment. If the employer fails to repay the unused funding, the only method available to recover the unused funding is through a formal determination under Regulation 12 of the above mentioned Regulations.

The employer will receive a notice to pay together with a payslip when the determination is issued. There is a statutory right of appeal of 30 days beginning with the date of issue of the determination.

SAFE action

Regulation 12 determinations are issued through SAFE. SAFE will make up to 2 applications for payment and if the debt is still unpaid, refer it to you on SAFE Clerical Action worklist.

Regulation 12 determinations are not managed through IDMS.

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Debt management technical office action

On receipt of the worklist item, send the employer a warning letter.

If there is no response within 14 days consider a telephone call or visit to the employer if appropriate.


Regulation 12 determinations do not attract interest.


Determinations under Regulation 12 may be recovered by any of the normal enforcement methods.

If you need to take enforcement proceedings for a Regulation 12 determination, follow the guidance below when preparing your documentation.

Distraint, summary warrant and summary proceedings

Describe the debt as “Determination under Regulation 12 Tax Credits (Payment by Employers) Regulations 1999” and show the income tax year.

County court proceedings

On form N1 show brief details of the claim as “Excess tax credit funding”.

For particulars of claim see the DMB Guidance Gateway under Letters and forms along with notes on how to complete them.

Certificate of debt

If you need a certificate of debt for a Regulation 12 determination see the DMB Guidance Gateway.

Appeals/objections received locally

You should refer any appeals/objections received locally to the issuing office.