Getting a Unique Taxpayer Reference (UTR) number is essential to anyone who needs to file self-assessment tax returns in the UK. Whilst the number is issued automatically, it is best for individuals and businesses to know how to get one, depending on their specific circumstances.
What is UTR number UK and how to get one? This and more will be covered below.
What Is UTR Number UK and Who Needs to Apply?
A Unique Taxpayer Reference (UTR) number is a 10-digit code automatically issued by HMRC to UK taxpayers who register for self-assessment or set up a limited company. This number is unique and permanent for each user and serves as one’s identity verification for various tax purposes. It is mandatory when filing a self assessment tax return.
This does not apply to Pay as You Earn (PAYE) workers who do not have supplementary income sources, as their taxes are deducted from the source and thus, do not generally need to register for UTR number and submit tax returns.
Self-employed people are typically the ones who need to file self-assessment, as it is the system used to report incomes and expenses and pay tax outside the PAYE system. The following will generally need to submit self-assessments:
- a sole trader
- a part of a business partnership
- an owner of a limited company
- with incomes other than from employment (e.g., dividends, savings interest, capital gains, etc.)
- with a total taxable income exceeding £100,000
Submitting a tax return without a UTR could result in a fine, as HMRC may not be able to match the return to their records before the submission deadline. Aside from the UTR ensuring accurate matching of records to payments, it also helps the tax office to track individual and business tax obligations.
A UTR will also be needed when taxpayers claim CIS tax rebate, use ‘payments on account’ basis (advance payment of tax via instalments), or when they work with tax professionals. The number must always be kept confidential, unless with tax professionals, as losing it may result in identity theft in the worst cases.
Company UTRs are separate from personal UTRs. The former is used by businesses, especially for filing corporate tax returns. Personal UTRs are used when filing self-assessments for personal tax. For instance, limited company owners will usually need to file two tax returns, so they use their company and personal UTRs separately. Business partners, on the other hand, will need their company’s and partners’ UTRs to file a tax return online.
UTRs are not to be confused with the US’s Tax Identification Number (TIN), Employer Identification Number (EIN), Social Security Number (SSS). Foreign establishments must also apply for UTR number online free, as it is the only ‘tax reference’ used in the UK for business and taxation compliance.
Where Can I Find My UTR Number UK?
Individuals automatically get their UTR upon registering for self-assessment. If they already received a UTR issuance, they could find the number in various documents, such as the following:
- SA250 (‘Welcome to Self Assessment’ UTR letter)
- Previous self-assessment tax returns
- Notices to file a tax return
- Statements of account
- Payment reminders
If they lost their UTR, they should first check all the above. They can also search for their UTR through their personal tax account or on the HMRC website or app. If it still cannot be found, they can directly contact HMRC’s helpline.
What Information Do I Need to Get My UTR Number?
Individuals applying for UTR will need to provide the following information:
- Basic personal information (e.g., full name, date of birth, current address, etc.)
- National Insurance number
- Personal phone number
- Email address
If they own a business, they will also need to fill in the following:
- Starting date of their self-employment
- The nature of their business
- Business address
- Business phone number
Business partners may also request a copy of their company’s UTR. To obtain one, they will need to prepare:
- Their company’s registration number
- Their company’s registered name
How Can I Get My UTR Number?
There are three main ways of how to get UTR number:
- Online via self-assessment registration
- Over the phone
- By post
How to Get a UTR Online
UK businesses and individuals must have their UTR prepared within the first three months of their company’s incorporation or start of self employed date. Preferably, it should be ready way before the tax filing deadline to avoid any issues. Submitting a self-assessment by filling in online HMRC forms is the quickest and most favourable option for obtaining a UTR.
Upon registering for self-assessment, HMRC automatically assigns a UTR, which is sent by post in a letter within the ‘Welcome to Self Assessment’ letter. This applies whether they are registering as self-employed, setting up a limited company, or in business partnerships, where both the company and each partner require separate UTR numbers.
How to Get a UTR Over the Phone
HMRC office helpline is 0300 200 3310 for UTR purposes. Callers will need to provide their personal details and National Insurance number and pass a few security checks to verify their identity. HMRC also directs callers to apply online if necessary.
How to Get a UTR Over by Post
The postal method may be suitable for those who prefer traditional communication, but it is slower and more cumbersome than online applications. This method may not be feasible for those who need to file tax returns quickly.
However, if they prefer the postal method, they can write a letter to HMRC asking for a UTR number. The back-and-forth exchange of information between the applicant and HMRC lengthens the process by several weeks. HMRC will likely ask for additional details, extending the timeline. Postal registration may also incur postage fees.
UTR Number FAQs
A UTR number is highly confidential and should only be shared when necessary and for legitimate reasons. For instance, it may be safe to provide the UTR to contractors to confirm tax withholdings or to professionals, such as accountants, who are authorised by the Financial Conduct Authority (FCA) to act on clients’ behalf.
UK individuals generally receive their UTR within 10 to 15 days of application. During peak periods, this timeframe may extend to up to 28 days. For overseas applicants, the wait may be approximately 3 weeks.
Failing to notify HMRC of one’s self-employment status and not obtaining a UTR may potentially lead to fines and legal risks.
HMRC offers an online tool to verify the validity of UTR numbers without disclosing personal taxpayer details. If a taxpayer stops filing self-assessment tax returns, their UTR may become dormant, automatically reactivating upon resuming tax filings.
With the prefix S, this is a tax code in Scotland. The most common example of how it is used is SK100, where the pay adjustment is added to the taxable pay rather than subtracted. This increases the amount of earnings on which tax is calculated.
How Can Legend Financial Help?
Once you are self-employed, understanding what is UTR number UK and why you need to get one as soon as possible becomes a crucial step to being tax compliant. HMRC non-compliance can lead to hefty penalties and serious legal consequences. Your personal and/or company UTR should be well ready before the next tax year’s filing deadline.
Legend Financial is here to help you register for self-assessment, file tax returns, claim any tax refund, and employ tax-saving strategies throughout. We have been in the tax and accounting industry for over ten years, nailing it in every case. Call our tax accountants today and see how we can help!
