A UTR number is your ‘unique taxpayer reference’ number. HMRC assigns each self-assessment taxpayer a different number in order to track their tax records. Once you get your UTR number it stays with you all your life, in the same way as your National Insurance number. The UTR number helps HMRC identify you and process your tax returns correctly.
A UTR number is needed for all sole traders, partnerships and limited companies in the UK. If you are required to file a personal tax return, you may also need to have a UTR number. Individuals with self-employed income or income from rental property probably forms the biggest group that need a UTR in order to file their personal tax returns. Other individuals that require a UTR may also be high earners above £100,000. In addition, if you are an individual working with an accountant or part of the Construction Industry Scheme, you may also be required to hold a UTR nuberm.
If you don’t have a UTR, you won’t be able to submit a personal tax return which could lead to late filing penalties and late interest charges by HMRC. If you fall short of your compliance to file your tax returns accurately and by the required deadlines, you could face criminal prosecution.
How to request a UTR number:
You must register with HMRC either on their website or by calling 0300 200 3310 which is free of charge. Please see our other blog on registering for self-assessment for further information.
If you have already started receiving income which requires a UTR and a personal tax return, you must normally register by 5 October following the end of the tax year the income started. However, HMRC expects you to register within at least three months of the end of your first month in business. They will consider strict penalties if you fail to do so.
It can sometimes take a while to receive a UTR number from HMRC; a few months even. Please ensure you follow up with HMRC to make sure it’s in hand.
If you’ve already filed personal tax returns before, you will already have a UTR number. Check any letters from HMRC and any previous tax returns which should reference the number. If you have access to your online HMRC portal, it should also be found here too.