What is a UTR Number?
A Unique Taxpayer Reference (UTR) is a 10-digit code issued by HMRC to identify individuals and businesses for tax purposes. It’s crucial for anyone filing a self-assessment tax return or paying corporation tax as a limited company. This identifier is unique to you or your business and is used in all communications with HMRC regarding your tax obligations.
Who needs a UTR Number?
- Self-employed individuals: If you are a sole trader, contractor, or freelancer, you must have a UTR number to file self-assessment tax returns.
- Limited companies: Each company is issued its own UTR by HMRC for corporation tax.
- Partnerships: Partners must have their own UTR numbers to report earnings from the business.
- Anyone with non-PAYE income: If you earn income outside of traditional employment (e.g., from rental properties or investments), a UTR is necessary for tax purposes.
Why is a UTR Number important?
UTR numbers for self-employed Individuals:
- You will automatically receive a UTR number after registering for self-assessment with HMRC.
- Registration can be done online, and HMRC will send the UTR number to your registered address.
UTR numbers for Limited Companies:
- When you register your company with Companies House, HMRC will automatically generate a UTR for the company. This is typically sent to your registered office address within 14 days of incorporation.
If you wish to obtain a UTR number without being self-employed or running a limited company, you will need to contact HMRC directly via phone or post.
How long does it take to get a UTR Number?
The process of receiving a UTR number is usually automatic once you register for self-assessment or form a limited company. The UTR should arrive within 10 to 14 working days. If there are delays, contacting HMRC directly may expedite the process.
What happens if I don’t have a UTR Number?
Operating without a UTR number is considered tax evasion in the UK, which is a serious offence. If you are self-employed or run a limited company without registering and receiving a UTR number, you risk facing penalties, back payments, or even legal prosecution.
If you’ve already started earning income as a self-employed individual or limited company but have not registered for a UTR, notify HMRC immediately to avoid penalties for unreported income.
How do I find my UTR Number?
If you’ve lost your UTR number, don’t worry—there are several ways to retrieve it:
- HMRC Correspondence: Your UTR will appear on official letters from HMRC, such as tax return forms, payment reminders, and confirmation letters.
- HMRC Online Portal: You can log into the government gateway and find your UTR number in the account summary under the self-assessment section.
- Contact HMRC: If you cannot locate your UTR in correspondence or online, contact HMRC directly. They will send the number to your registered address.
Can you change your UTR Number?
Once a UTR number has been issued, it cannot be changed. It remains tied to your personal tax history or your company’s tax records. Even if you de-register and re-register for self-employment or dissolve and reform a company, the same UTR number will be used. The only exception to this rule is if you declare bankruptcy, in which case you will be issued a new UTR number.
What happens if I lose My UTR Number?
If you misplace your UTR number, simply refer to any official correspondence from HMRC. Your UTR is always present on tax returns and payment reminders. You can also access it via your online self-assessment account through the government gateway. If all else fails, contact HMRC for assistance in retrieving your UTR.
UTR numbers: In summary
A UTR number is a crucial identifier for individuals and businesses in the UK tax system. Whether you’re self-employed or running a limited company, having a UTR ensures your tax filings are correctly tracked by HMRC. Losing your UTR can cause significant headaches, but recovering it is straightforward through HMRC correspondence or online access. Remember, once issued, your UTR remains unchanged unless you declare bankruptcy.
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