What is a UTR?
A Unique Taxpayer Reference (UTR) is a 10-digit number issued by HMRC (Her Majesty’s Revenue and Customs) in the UK. This number is unique to each individual or entity, such as a company or partnership, and is used primarily for tax-related purposes. The UTR is essential for anyone who needs to file a Self Assessment tax return or for companies and other organizations that are required to submit tax information.
When Do You Need a UTR?
You will typically need a UTR if:
– You are self-employed or a sole trader.
– You are a company director.
– You are part of a partnership.
– You receive income that isn’t taxed through PAYE (Pay As You Earn), such as rental income, investment income, or foreign income.
How to Get a UTR from HMRC
1- Register for Self Assessment:
The primary way to obtain a UTR is by registering for Self Assessment with HMRC. This can be done online via the HMRC website.
2- Register as a Sole Trader or Self-Employed:
– Visit the [HMRC Self Assessment registration page](https://www.gov.uk/register-for-self-assessment.)
– Follow the instructions to create a Government Gateway account if you don’t already have one.
– Complete the form, providing details such as your name, address, and National Insurance number.
– Once registered, HMRC will send your UTR by post within 10 working days (or 21 days if you are abroad).
3- Registering a Limited Company:
– If you are setting up a limited company, your UTR will be automatically issued by HMRC once your company is registered with Companies House.
– You will receive the UTR by post within a few weeks of incorporation.
4- Partnerships:
– If you are setting up a partnership, you must register the partnership with HMRC, and they will issue a UTR for the partnership.
5. By Phone or Post:
– You can also apply for a UTR by calling HMRC’s Self Assessment helpline or by writing to them, although this process may take longer.
What to Do If You Lose Your UTR
If you already have a UTR but have lost it, you can find it:
– On previous tax returns or documents from HMRC.
– By logging into your Government Gateway account.
– By contacting HMRC directly.
Things to Keep in Mind
– Your UTR is confidential and should be kept safe. It should only be shared with trusted entities like your accountant, HMRC, or when filing your tax return.
– Ensure that you register for Self Assessment or your business activities as soon as you start earning income that requires it, to avoid penalties.
How FAAS Accountants Can Help
FAAS accountants can assist you with the entire process of obtaining your UTR and ensure that your tax affairs are managed correctly and efficiently. They can also provide ongoing support to make sure you meet all your tax obligations on time.