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HMRC internal manual

Debt Management and Banking Manual

Pre-enforcement: recovery documentation and checks: recovery proceedings checks: RP checks for PAYE EOY underpayments - unused tax credit funding

  • view BROCS VTP PS to obtain the P228 details
  • enter the month number PD* and the serial number of the P228 posting
  • compare any amount shown in the ‘WFTC FUNDED’ field to any shown in the ‘WFTC PAID’ field.

If the ‘WFTC FUNDED’ exceeds the ‘WFTC PAID’ this will indicate that not all of the funding paid to the employer has been used and the unused funding will be included in the P35 underpayment.

To identify the amount of unused funding still to be recovered, you should compare the total amount of unused funding to the total underpayment as per the following examples.

  Example 1 Example 2
A WFTC FUNDED £5600 £6000
B WFTC PAID £2000 £2000
C Unused funding (A-B) £3600 £4000
D Total underpayment £3900 £3900
E Funding still to be recovered £3600 £3900


The ‘Funding still to be recovered’ (E) cannot exceed the ‘Total underpayment’ (D). Where the ‘Unused funding’ (C) exceeds the ‘Funding still to be recovered’ (E) this will indicate that some unused funding has already been repaid. You will need to include any amount of unused funding already repaid as part of the details provided to the ECIT.

Where the ‘Total underpayment’ (D) exceeds ‘Funding still to be recovered’ (E) the difference is the amount of the underpayment still to be pursued.