UTR Number: What It Is, When You Need One, and How to Get It
A Unique Taxpayer Reference (UTR) number is a 10-digit identifier used by HMRC for tax purposes. If you’re self-employed or running a business, you will need this number for tax-related tasks. But when exactly do you need one, and how can you get it?
A Unique Taxpayer Reference (UTR) number is a vital part of the UK’s tax system. It is a 10-digit number issued by HMRC to individuals and businesses to track their tax accounts. Whether you’re self-employed, running a limited company, or involved in other taxable activities, your UTR number will be essential for filing your Self Assessment tax returns, paying taxes, and dealing with other tax-related matters.
Understanding what a UTR number is, when you need one, and how to obtain it is crucial for staying compliant with the tax laws and avoiding penalties.
If you’re new to the tax system, you may be wondering how to get a UTR number and when exactly you will need it. For sole traders, limited companies, and partnerships, the process of acquiring a UTR varies slightly.
First understand…
What is a UTR number?
A Unique Taxpayer Reference (UTR) is a 10-digit code issued by Her Majesty’s Revenue and Customs (HMRC) to identify individuals and businesses for tax purposes. The UTR is essential for completing your Self Assessment tax return, paying income tax, and engaging in certain business activities. This reference number is unique to you and helps HMRC keep track of your tax obligations.
Your UTR is different from other identification numbers, such as your National Insurance number or company registration number. While your National Insurance number is used for social security and pension purposes, and your company registration number is for identifying your company, the UTR is specifically for your tax matters.
When do you need a UTR number?
You need a UTR number in the following situations:
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Self-Employed or Sole Traders: If you’re self-employed, you must register for Self Assessment with HMRC. You’ll be assigned a UTR number to use for your annual tax returns and other tax-related filings.
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Limited Companies: After registering a limited company with Companies House, your business will receive a UTR number for filing Corporation Tax returns.
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Partnerships: Each partner in a partnership, as well as the partnership itself, needs a UTR number.
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Landlords and Trustees: If you are a landlord with rental income or a trustee managing a trust, you may need a UTR number.
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Construction Industry Scheme (CIS) Contractors: If you work in construction and need to register for the Construction Industry Scheme (CIS), you must provide your UTR to ensure proper tax deductions.
If you’re involved in any of these activities, you will need to get a UTR number to ensure your taxes are filed and payments are made correctly.
How to get a UTR number
Sole traders
As a sole trader, you will automatically receive a UTR number once you register for Self Assessment. To do this, simply go to HMRC’s Self Assessment registration page and fill out the necessary details about your business. HMRC will then send your UTR number by post, which typically arrives within 10 days (or up to 21 days for those living abroad). Be sure to register by 5th October following the end of the tax year in which you first started trading to avoid any penalties for late registration.
Limited companies and partnerships
When you register a limited company with Companies House, a UTR number is automatically assigned to your company for Corporation Tax purposes. If you’re a partner in a partnership, each partner will need to register separately for Self Assessment and will receive their own UTR number.
Finding your UTR number
If you’ve already been registered for Self Assessment or Corporation Tax, you can easily find your UTR on several official documents:
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Your Personal Tax Account or HMRC app
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Your Self Assessment tax returns or SA302 forms
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Letters from HMRC, such as tax reminders or notices to file your return
If you’re unable to locate it, you can contact HMRC’s Self Assessment helpline for assistance. For businesses, the UTR number will also be sent to the registered office address.
UTR vs. Other Identification Numbers
It’s important to understand the distinction between a UTR and other common identification numbers used in the UK. Here’s how they differ:
| Number | What it is | Who uses it |
|---|---|---|
| UTR | A Unique Taxpayer Reference for Self Assessment or Corporation Tax | Individuals, sole traders, businesses |
| National Insurance (NI) Number | A personal identifier for National Insurance contributions | Individuals (for tax and benefits) |
| Company Registration Number | A number issued when a company is incorporated | Limited companies and LLPs |
| VAT Number | A reference number for VAT-registered businesses | VAT-registered businesses |
How to keep your UTR number safe
Your UTR number is sensitive information, and it’s crucial to protect it. Only share your UTR number with trusted sources, such as:
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HMRC (for tax filing and payments)
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Your accountant or authorised tax advisors
Avoid sharing your UTR number with cold callers or unsolicited emails, as these may be phishing attempts. HMRC will never ask for your UTR via email, so always be cautious when receiving such requests.
Conclusion
A UTR number is vital for self-employed individuals, business owners, and certain other taxpayers in the UK. It’s used for tax-related tasks, including filing tax returns and paying taxes. Registering for a UTR number is straightforward, but it’s important to ensure you do it on time to avoid penalties. Keep your UTR safe and share it only with trusted sources to protect your financial information.
