All About Your Unique Taxpayer Number (UTR)

All About Your Unique Taxpayer Number (UTR)

Author: Uk Tax Associate Molly Smith

WHAT IS A UTR NUMBER?

A UTR number is your Unique Taxpayer Reference. Every self-assessment taxpayer will be assigned directly a UTR by HMRC to track their tax records. A UTR number is also known as a tax reference number.

The UTR number is a 10 digit number and in some instances will have a K at the end, used by HMRC to identify individual taxpayers. Similar to your National Insurance Number, your UTR will stay with you for life.

Your Unique Taxpayer Reference is important when working with your accountants or financial advisors. You will be issued a UTR from HMRC if any of the following apply to you:

  • You are registered as a self-employed sole trader
  • You have established a new limited company
  • As an individual, you have informed HMRC of untaxed receipts, for example, rental receipts
  • You are registered as a partnership
  • You have informed HMRC of a trust that is chargeable for income tax

Where Can You Find Your UTR

  • On Your Self-Assesmenet Tax Return (SA100)
  • Your notice to complete a Self-Assessment Tax Return
  • Statements issued to you by HMRC
  • Find a lost UTR number

How to Get a UTR

  • When you register for a Self-Assessment tax return online, you will automatically be issued a UTR number, this will be sent through the post
  • If you register for a Self-Assessment tax return over the phone, you can ask them for your UTR number. To do this you can call HMRC on 0300 200 3300 [1] if you are in the UK, or if you are outside the UK call +44 135 535 9022. Even though you have phoned them they may instruct you to apply via the online process. Remember, when you contact HMRC you must have your National Insurance Number to hand.
  • You can write to HMRC, requesting your UTR number. However, this may be more time consuming as you may need to send more follow up letters providing more information that is requested by HMRC to receive your UTR.
  • It may take some time until you receive your UTR, so keep in mind that the deadline for filing tax returns is the 31st of January and it is recommended that you obtain your UTR in good time before the filing deadline.
  • HMRC says it can take eight weeks to receive your UTR number, however, in most cases, individuals receive theirs quicker than this.

You do not need to pay to apply for your UTR.

INFORMATION NEEDED TO RECEIVE YOUR UTR

To register for a Self-Assessment tax return you must have the following information:

  • Full Name
  • Address
  • Date of Birth
  • Phone/ Contact Number
  • Email Address
  • National Insurance Number

If you are self-employed you may be required to provide the following:

  • The date you became self-employed
  • The type of business you own
  • Business contact details, such as a phone number
  • Business address

WHO NEEDS TO FILE A FORM 8858

Tax Owner VS Direct Owner of a Foreign Disregarded Entity:

There are two types of owners for a Foreign Disregarded Entity for tax filing reasons. A tax owner of a Foreign Disregarded Entity is the individual who owns the assets and liabilities under the FDE, whereas the direct owner is the legal owner of the FDE.

In certain cases, for those that it is compulsory to file Form 5471 (filed by any US person who owns more than 10% of a foreign corporation and is part of the 1040 tax return) will also have to file the 8858 Form.

UTRs for Partnerships

If you are involved in a business partnership, you will need to be aware that you will require more than one Unique Taxpayer Reference – one for the business and one for each partner involved in the business.

Other Facts about UTRs

If you use the wrong UTR to file a tax return you may be faced with a penalty from HMRC, so be sure to double-check it is correct!

If your UTR remains unused for some time, it may deactivate. All you have to do to reactivate your UTR is start submitting your Self-Assessment tax returns again.

It is not only the self-employed who need their UTR numbers when filing a tax return, you may be paid PAYE (Pay As You Earn) but if you have other sources of income, such as property income and capital gains, you may be expected to file a tax return to HMRC and you will therefore need to register and acquire your UTR. If you do not file when required to, one may face a fine or in certain circumstances, a criminal penalty.

If you are claiming a PAYE tax refund, you will have to file a Self-Assessment tax return to receive your refund, meaning that you will need to get in touch with HMRC to attain your UTR number.

Need any More Help?

Tax can be a complex subject, especially to those lacking experience in filing their tax return. At Bambridge, we have a team of charted accountants available to offer you sound tax advice. Do not hesitiate to contact us for help with any of your tax needs.

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