Getting a UTR number is one of the most important things you can do for your business. It’s a legal requirement and will help you in your quest to register for tax.
What is a UTR number?
A UTR number or unique tax reference number as it is fully known is a ten digit number issued by HM Revenue and Customs to all UK taxpayers. This includes individuals, Partnerships, limited companies and charities.
If you are an individual, you will only require a UTR number if you are self-employed or you receive a certain amount of investment income. This is because people in this group are usually required to fill in a self-assessment tax return and this can only be done if you have a UTR number.
Limited liability companies also require a UTR number in order to be able to file their Corporation tax return and pay their corporation tax liability.
Self-employed
Getting a UTR number (Unique Taxpayer Reference) is a must for anyone who is self-employed. The number helps HMRC identify you, and it is also a good way to get tax refunds. However, it can take up to 10 days to receive your UTR in the UK.
The UTR is a ten-digit code used by HMRC to identify a person or company. It can be used for many different purposes, including filing a Self Assessment tax return, tracking tax payments, and monitoring suspicious activity. The UTR is also used to give a tax reference to individuals in receipt of certain forms of income, such as a rental property or a side hustle.
There are several ways to get your UTR, although the simplest way of getting a UTR number is to go online and register with HMRC. You will then receive a code that can be used to activate your online account. If you are unable to register, you can call the HMRC helpline.
Getting a UTR number is a simple process, and it can be a good idea to do it as soon as possible. Having your UTR will help you file your tax returns, and it will also be handy for your accountant if you are using one.
Sole traders
Getting a UTR number for sole traders is no rocket science, but there are a few things you need to know before you start. The best way to get your UTR number is to register with HMRC. You can either do this online or by post. You can also set up an account to access the Self Assessment service. You can use this to keep track of your tax status and check your tax statement in real time.
As a sole trader, you don’t need to register your business with Companies House. You’ll get a Unique Taxpayer Reference, or UTR, to let you file your self-assessment tax return.
However, as a sole trader, you’ll need to pay taxes on your business income. The self-assessment tax return isn’t an easy process. You’ll need to keep accurate records of your expenses, such as original receipts, and report your earnings. You’ll also have to pay National Insurance on all your profits.
Limited companies
Getting a UTR number is an important part of the tax self assessment process. It is issued by HM Revenue and Customs and is used to track your tax obligations. It is also an important tool for accountants and financial advisors to use when filing and processing your tax returns.
A company’s unique tax reference is a 10-digit number that is assigned by HMRC. It is printed on the Notice to Deliver a Company Tax Return or other statutory communication. It will be displayed next to headings like ‘Tax reference’ on most other statutory documents.
Unlike other business structures, a limited company is a separate legal entity. Hence, it is necessary for it to be registered with Companies House.
Companies House will then notify HMRC of your new company. They will then send you a letter containing your company’s unique tax reference. You should receive your UTR within 10 days of registering your company. However, if you live abroad, it may take longer.
Registering for Self Assessment
Having a Unique Taxpayer Reference (UTR) number is very important. It allows you to file Self Assessment tax returns online or by post. If you do not have a UTR, you will not be able to file your tax return and this may lead to late filing penalty and interest on tax paid late.
The registration process for self-employed people can vary according to their type of business. If you are a sole trader, you can complete a Form online and submit it. You will need to set up a Government Gateway account. Once you have created the account, you can sign in and submit the Form to notify HMRC that you are now self employed.
If you are a partner in a partnership, you will need to get a partnership UTR before you can complete the partnership registration form. You can get a partnership UTR by registering for Self Assessment, or by using the online Form, just like an individual.
Frequently asked questions
From time to time we get asked questions on how to get a UTR number. The following provide answers to the most common of these questions:
How do I get a UTR number for the first time?
There are many ways to get a UTR number, depending on whether you are an individual or a limited company. If you are an individual you will get a UTR number when you register as self-employed and to register as self-employed you normally have to fill out a form and send to HMRC to tell HMRC that you are now self-employed. You can also register as self employed over the phone. You simply ring HMRC and let them know that you have started self employment. The will ask you for details such as your name, National Insurance number, address and date of birth. HMRC will then send you a letter with your UTR number, which is a 10 digit number.
If you are a limited company, Companies House will automatically inform HMRC that a limited company has been formed when the company is incorporated. HMRC will then automatically issue a UTR number and send details of the UTR number to the directors of the company at its registered office.
Do you have to be in business to get a UTR number?
No, you don’t need a business to get a UTR number. You may be required to get a UTR number even though you are not in business. A good example is a non resident who has a UK property that is rented out to tenants.
Another group of individuals who are not in business but will require a UTR number are those who receive a certain amount of investment income per year. In the main, people who must consider getting a UTR number are those who are required to file a self-assessment tax return. These are not just people who are in business. Click here if you are not sure if you are required to file a tax return.
How do I get a UTR number if I am not self-employed?
As mentioned above, you can still get a UTR number even though you are not self-employed. The process of getting a UTR number for anyone who is not self-employed are the same as for those who are self-employed. Basically, you can do it in one of two ways. 1. You can fill out a form online and send to HMRC. This form can be filled online and submitted online as well. However, you will need an e-mail address and a password in order to set up an account with HMRC online. Once the account is set up, you can then fill out the appropriate form online and submit to HMRC.
Another way to get a UTR reference for those who are not self-employed is to call HMRC and tell them that you have investment income that you need to report on a Self-assessment tax return Just as we mentioned above.
Can I submit a self assessment tax return without UTR?
No, you cannot do a self-assessment without a UTR. This is because a UTR is the only way that HMRC can identify you as a tax payer. Furthermore, most tax return these days are filed online. HMRC online system will not accept a self-assessment tax return without a UTR. Consequently. If you are required to fill in a self-assessment tax return, ensure that you apply for UTR on time. HMRC will generally issue a UTR within 10 working days of being informed of your intention to file a tax return.