What Is a Unique Taxpayer Reference (UTR) Number

If you’re a self-employed individual in the UK or are filing for a Self-Assessment tax return, one of the most important things you’ll need is your Unique Taxpayer Reference number.

But what does this number mean and what does it represent? Who needs to obtain a UTR and why is it important? 

In the following sections, we share everything you need to know about the Unique Taxpayer Reference number. 

What Is a Unique Taxpayer Reference (UTR): The Basics

Before we dig deeper into the role of the Unique Taxpayer Reference number, let’s start from the basics. 

What’s the UTR number in the first place?

In short, the Unique Taxpayer Reference number is a UK identification number provided by HM Revenue and Customs, or HMRC. Unique Taxpayer Reference numbers consist of 10 digits that are issued to a limited company.

If you’re self-employed or a sole trader, UTR numbers can help you keep track of your personal tax account and corporation tax. Overall, you need a UTR number if you submit a Self-Assessment tax return. 

In most cases, this applies to individuals or companies that owe tax on savings interest, capital gains, and dividends. You’ll also need a UTR if your taxable income exceeds £100,000.

You can have both a company Unique Taxpayer Reference number and a personal UTR. 

In a nutshell, you’ll need your own UTR number if:

• You’re filing Self-Assessment tax returns;
• You’re registering for a Construction Industry Scheme;
• You’re prepaying parts of your tax bill; 
• You’ve signed up for professional advice and you’re working with an accountant or financial advisor who has the authority to act on your behalf.

Here’s a Unique Taxpayer Reference example:
7210158404

In some cases, you might come across UTR numbers with a “K” at the end. 

How to Find Your UTR: A Step-by-Step Guide

Now that you know what a UTR is, you may be asking yourself “how can I find my UTR number”.

Here’s how to get a UTR number:

• During the company registration process, Companies House will inform HMRC about the existence of your new business. You won’t be required to contact HMRC directly.

• A few weeks after you register your company (14 days to be precise), HMRC will use your registered business address to send you a letter with your company’s UTR. The title of the letter will be something along the lines of “Official Use”, “Tax Reference” or “UTR”. 

This is how you get a Unique Taxpayer Reference. 

Once you have your UTR, you can find it printed on the letter you received from HMRC after registering your limited company. In addition, you can find the number on all other documents sent from HMRC, the “Notice to deliver a Company Tax Return”.

On the other hand, if you require a Self-Assessment UTR, you can easily obtain the number by registering with HMRC. All you need to do is visit the HMRC website and go through the provided step-by-step instructions.

Keep in mind that you’ll need to provide some basic information, including:

• Personal details (name, date of birth);
• Personal income details; 
• Details of employment (self-employment or other types);
• National Insurance Number;
• Contact details (a contact address, business telephone number, contact phone number);
• Business structure. 

Throughout the registration process you’ll need to create a personal account with HMRC. You can use this online account for tax-related purposes and access your tax records. 

The Role of UTR in Tax Filing and Administration

As noted above, the Unique Taxpayer Reference number plays a vital role in tax filing and administration.

It enables HMRC to properly track and manage taxpayer records, preventing issues and guaranteeing that tax-related processes are adequately conducted. 

In addition, the UTR is a crucial component for anyone who files a Self-Assessment tax return. These include self-employed individuals, business owners, landlords, and anyone else who is categorised as someone with complex financial affairs. 

The UTR is fundamental for making tax payments, registering for Corporation Tax, VAT, and others. It’s also important for record keeping as it ensures that all tax records are organised and maintained properly. 

Through your UTR, HMRC can track filing deadlines and send payment reminders and notifications regarding tax return submissions. 

A lot of people confuse the Unique Taxpayer Reference number with their tax code. Tax codes are different from the UTR. 

Although both are equally important for tax purposes, the UTR number is unique and specific to you, while the tax code represents the amount of tax you’re obliged to pay. 

Unique Taxpayer Reference vs. National Insurance Number: Key Differences

One very important differentiation to make is between the National Insurance Number and the Unique Taxpayer Reference number. Both are key identifiers that are essential in the UK. However, they suit different purposes and are applicable in different contexts.

For example, the purpose of the National Insurance Number is to track contributions and benefits. The number consists of two letters, six digits, and a final letter and is issued to anyone who lives or moves to the UK to work after the age of 16. 

On the other hand, the Unique Taxpayer Reference number is essential for anyone looking to register for a Self-Assessment tax return, like self-employed people, individuals who own a business, and others with complex tax affairs. 

Common Issues and Solutions for Retrieving Lost UTRs

If you’ve lost your UTR number, it’s key to retrieve it as soon as possible as you’ll need it for tax purposes and covering your tax obligations. 

To recover a lost UTR number, notify HMRC about the situation as soon as possible. You can directly call the Self-Assessment helpline and provide your details. HMRC issues are usually dealt with promptly, meaning that you won’t need to wait for long periods to recover your UTR.

If you have an account with HMRC, you can log in to find your UTR number. 

Using Your UTR for Self-Assessment and Online Tax Accounts

As noted above, your UTR is key for self-assessment and online tax accounts.

After you’ve obtained your UTR, make sure to create an online tax account with HMRC. This will enable you to handle your tax affairs from the comfort of your computer or smartphone. Simply go through the registration process and provide all of the requested data. 

Once you have your online account, you can file tax returns, complete payments, and keep track of your tax history. 

To file your Self-Assessment tax return, log into your online tax account and follow the instructions. Provide your UTR, income details, expenses, and other data. Via your UTR, the HMRC will link your submitted return to your account. 

How Businesses Use UTRs for Efficient Tax Management

With the help of your company UTR number, you can make sure that all your financial activities are properly stored and reported. 

Your company UTR is essential for:

• Corporation tax;
• PAYE (Pay As You Earn);
• VAT; 
• Tax payments; 
• Self-Assessment tax return. 

As such, this number is one of the most fundamental pieces of information business owners can have. 

Keeping your number safe is essential.

Expert Tips for Managing Your UTR and Avoiding Tax Issues

One of the most important things to consider about your UTR is safety. 

It’s highly recommended to keep your UTR number to yourself and avoid sharing it with anyone else. UTR numbers can be used for identity theft, potentially creating long-term legal challenges and data manipulation. 

Another tip worth trying is keeping a well-organised system for all your tax information and correspondence. Keep a record of digital copies and physical copies of correspondence with the HMRC. This will help you complete your Self-Assessment tax return much faster and easier.

It’s also useful to rely on advanced accounting software that will help you track your income, expenses, and tax obligations. A lot of the available tools on the market today offer integrations with HRMS systems, making tax return submission easier than ever. 

Plan in advance and make sure you’re setting aside part of your income for tax bills. This can help prevent unexpected situations and business disruptions. 

Frequently Asked Questions

Can you use your own UTR number as your company’s UTR?

Personal UTRs are entirely different from company UTRs. They’re provided to anyone registered for Self Assessment, while company UTRs are provided to businesses. In other words, no, you cannot use your personal UTR as your company’s UTR.

Is it mandatory to provide your UTR number when submitting your tax return?

Yes, it’s obligatory to provide your UTR number to complete your Self-Assessment tax return. This applies to anyone who owns a limited company or is registered as self-employed.

What happens if I lose my UTR?

If you’ve lost your UTR, you can simply get in touch with the HMRC and inform them that you need to recover your UTR number. Alternatively, you can log into your online account with the HMRC and access your number from there.