What is a UTR Number?
A Unique Taxpayer Reference (UTR) number is a 10-digit code issued by HM Revenue and Customs (HMRC) in the UK. It is used to identify individuals and businesses for tax purposes. Every self-employed person, sole trader, or business registered with HMRC has a UTR, which is essential when dealing with taxes, especially in the context of filing tax returns, paying taxes, or corresponding with HMRC about tax matters.
For individuals, a UTR is required when you need to file a Self Assessment tax return. This applies to anyone with additional income outside of regular employment, such as freelancers, landlords, or investors. For businesses, especially limited companies, the UTR number is linked to the company’s Corporation Tax and is necessary when filing annual tax returns.
Do you need a UTR number to submit your return?
You need a Unique Taxpayer Reference (UTR) number to submit your Self Assessment tax return in the UK. The UTR is a critical identifier that allows HM Revenue and Customs (HMRC) to link your tax return to your personal or business tax account.
What if You Don’t Have a UTR?
If you do not have a UTR but need to file a tax return (for example, if you're newly self-employed or earning additional income), you must register for Self Assessment through HMRC. Once registered, HMRC will send your UTR by post within about 10 working days (or 21 days if you're abroad). You should apply for your UTR as soon as possible, as it is required to meet tax return deadlines.
Exception
If you are employed and your taxes are handled entirely through the Pay As You Earn (PAYE) system, you may not need a UTR unless you have additional income that requires you to file a Self Assessment.
How To Apply for a UTR
You’ll need to apply for a UTR if you are self-employed or run a business in the UK. The process is straightforward:
Registering for Self Assessment: To get a UTR, individuals must first register for Self Assessment through the HMRC website. During the registration process, HMRC will issue your UTR automatically and send it by post within ten working days.
Corporation Tax for Companies: For limited companies, the UTR is provided upon registration with Companies House. Once the company is incorporated, HMRC will send the company’s UTR via post.
Application for Partnerships: Partnerships also require a UTR, which is assigned to both the partnership itself and each individual partner. You can apply for a partnership UTR when registering your business for partnership taxation through HMRC.
Non-UK Residents: Even if you live abroad but need to file a Self Assessment tax return in the UK, you must still register with HMRC to receive a UTR. You can do this online or by post.
It's important to register and apply for your UTR as early as possible to ensure that you meet any tax deadlines.
What information do I need to register for a UTR number?
When registering for a UTR you will require certain information including:
Name, date of birth and address
Your national insurance (NI) number
Contact telephone number and email
Your business address and telephone number
The date you started self-employment
Your business type
Where to Find Your UTR
Once issued, your UTR number will be displayed in several key documents from HMRC. Here are the most common places to find it:
Official HMRC Correspondence: Your UTR will be mentioned in any correspondence from HMRC regarding your tax return or payment schedules. Look for it in letters or notices titled “Notice to File a Tax Return” or “Statement of Account”.
Online through Your HMRC Account: If you’ve registered for HMRC’s online services, you can log in to your account and find your UTR listed under your account information.
Previous Tax Returns: Your UTR will appear on any previous Self Assessment tax returns you’ve submitted, either through the online system or in your personal records if you’ve filed manually.
Self Assessment or Corporation Tax Registration: When you first register for Self Assessment or Corporation Tax, HMRC will send a letter confirming your UTR number. It's advisable to keep this document for your records.
Is a UTR number the same as a PAYE reference?
A UTR number and a PAYE reference are not the same. They serve different purposes within the UK tax system and are issued for different reasons.
UTR Number
A Unique Taxpayer Reference (UTR) is a 10-digit number issued by HM Revenue and Customs (HMRC) to individuals or businesses for tax purposes. It is used primarily for Self Assessment and Corporation Tax.
Purpose: Identifies individuals and businesses for tax filing and payment.
Who uses it: Sole traders, freelancers, landlords, company directors, and anyone filing a Self Assessment tax return.
PAYE Reference
A PAYE (Pay As You Earn) reference is a code used by employers to identify their business when they are managing employee payroll and paying Income Tax and National Insurance contributions on behalf of their employees. It consists of two parts: the first part identifies the tax office responsible for the employer, and the second part identifies the employer's payroll scheme.
Purpose: Used to identify an employer in the PAYE system for payroll tax purposes.
Who uses it: Employers when managing employee salaries, tax deductions, and National Insurance contributions.
Key Differences:
UTR is for personal or business tax identification related to Self Assessment or Corporation Tax.
PAYE reference is for employers managing payroll tax deductions for employees.
Registering Your Business
At Styles & Associates, we can assist you in registering your new business and obtaining your UTR. A UTR is essential for submitting your tax return, so securing it early is crucial to prevent any delays in filing. Keep your UTR safe, and always include it in any correspondence with HMRC regarding your taxes.
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