When operating a business in the UK, you must go through some legal compliance process, including tax filing. Obtaining UTR is one of these important elements. Do you need one or how can you apply for a UTR number in the UK?
Whether you are a resident or a non-resident, self-employed or sole trader, register the business with Companies House or HMRC—you should know the process to obtain a UTR number for managing tax affairs effectively.
In this guide, we will help you by discussing the step-by-step process of achieving an HMRC UTR number, including its purposes.
Let’s move to the right track to avoid penalties and legal consequences.
Understanding the UTR Number
So, what is a UTR number? Let’s learn the basics in brief for your betterment.
A UTR, or Unique Taxpayer Reference, is a unique identification number that is issued by His Majesty’s Revenue and Customs to businesses or individuals for tax affairs purposes. This 10-digit identification number is mostly used for tax filing, declaring income, claiming refunds, and communicating with HMRC.
In short, UTR is a key to interacting with the UK tax system. Sometimes this identification number can be 13 digits long.
Purposes of the UTR Number in the UK
As we mentioned above, we will now enlighten you with in-depth knowledge of why you need a UTR number in this part:
- Tax Obligations: A UTR number is necessary for fulfilling tax duties, whether you are a resident or a non-resident operating a business (limited companies, partnerships) or being self-employed in the UK.
HMRC tracks tax records using this special taxpayer reference to make sure the right amount of tax is paid on time. You will not be able to accurately record your income without a UTR, which will make it harder to adhere to UK tax regulations. - Self-Assessment Tax Return: Whether you are a UK resident or non-resident who receives rental income from UK property, earns dividends, or invests in UK markets and are a self-employed individual, you have to file a self-assessment tax return with HMRC using a UTR.
This ensures that your tax affairs are in the right order and saves you from facing penalties. - Tax Refunds: HMRC will use this reference to identify businesses and individuals to provide tax refunds by checking financial records and confirming identity if you have overpaid your taxes.
- Claiming Tax Relief: To avoid taxing people twice on the same income, several countries have double taxation agreements (DTAs) with the UK. However, in many cases, obtaining a UTR is necessary before you can take advantage of these treaties’ tax benefits.
In order to file your claim for tax relief under a DTA, non-residents need to apply for a UTR number in the UK. - Partner with Accountants: When working with an accountant or a tax attorney who handles your tax return on your behalf, UTR is required for them to access your tax information. This is essential for managing your tax matters efficiently as the gateway for professionals.
- Construction Industry Scheme: The UTR is particularly important if you are involved in the UK’s construction. CIS cracks down on suspicious ‘cash-in-hand’ payments in construction. As an advance payment against tax, CIS gives HMRC 20% of self-employed construction workers’ earnings.
As the CIS taxes your wages from the very first penny, you can be owed a refund for paying too much. For this, UTR is essential to tracking payments and receiving refunds. - Income Tax: The directors and shareholders of the company may require their own personal UTRs to file their individual income tax returns.
- Verification Purposes: Sometimes many third parties look for your UTR number as part of the verification process. Your UTR number provides validation of your identity, like a National Issuance Number.
Essentially, whether you manage your financial affairs from overseas or reside in the UK, the UTR is your gateway to maintaining compliance with UK tax regulations.
How to Apply for a UTR Number Step-by-Step?
Applying for a Unique Taxpayer Reference (UTR) number is an essential step for individuals and businesses in the UK to ensure compliance with HM Revenue and Customs (HMRC) regulations.
As you have a basic understanding of UTR numbers and their purposes, you may be waiting to learn the secret to getting one. Before starting, you should know that businesses that are incorporated as limited companies don’t need to apply for a UTR number in the UK. They get the UTR number by post at their registered office address once the company is registered with Companies House—during the company registration, a UTR number is issued automatically.
However, businesses (partnerships, sole traders) and individuals (self-employed, partnership members, or non-residents earning UK-sourced income) need to register with HMRC for self-assessment first. This can be done online, by phone, or by post.
Whether you’re self-employed, starting a new business, or need a UTR for other tax-related purposes, let’s learn how to apply for a UTR by self-assessment:
Applying Online
- Registering for Self-Assessment Online
To start, visit the HMRC website and register for self-assessment if you’re not already registered. You’ll receive a UTR as part of the registration process. This number becomes your tax ID in the UK, linking all your tax records. - Access to the HMRC Website
After registering, access the HMRC online services portal. Select the option to apply for a UTR number and follow the on-screen prompts. The website guides you through the process, making it easy to complete. - Completing the Online Form
Fill out the online form with your personal and business details. Be sure to double-check everything before moving on. Accuracy here will save you from potential issues down the line. - Submitting the Application
Review your application one last time, then submit it through the HMRC website. Applying online is typically the fastest way to get your UTR. - Receiving Confirmation
HMRC will send you a confirmation once your UTR number is assigned. This may arrive via email or by post, so keep an eye out for it. Your UTR is crucial for all future tax interactions, so make sure to store it securely.
Applying by Phone
HMRC Helpline Contact Details: Prefer to apply for a UTR number by phone? Call the HMRC helpline to speak to a representative. This can be helpful if you have questions or need guidance.
Before you dial, gather the following details:
- Full name, address, and date of birth.
- National Insurance number.
- Business details (if applicable).
Once you gather the information, dial by phone and provide the necessary information, and the representative will guide you through the application. Note down any reference numbers or additional instructions they provide.
Applying by Post
- Downloading and Completing the Form
If you prefer to apply by mail, download the SA1 form (for individuals) or the relevant form for businesses from the HMRC website. Fill it out carefully, ensuring all details are accurate. - Mailing the Form to HMRC
Mail your completed form to the address provided on the form or the HMRC website. Including any required supporting documents is essential. Consider using recorded delivery to track your submission. - Estimated Processing Times and Follow-Up
After sending your form, wait for HMRC to process your application. If you haven’t received your UTR number within the expected timeframe, follow up with HMRC using the contact details on their website. They’ll help you track the status of your application.
By following these steps, you can apply for a UTR number online, by phone, or by post. Providing accurate information and following any additional instructions from HMRC will ensure a smooth application process. Your UTR number is essential for fulfilling your tax obligations and staying compliant with HMRC regulations.
What Information is Needed to Apply for UTR?
When the time comes to apply for your UTR number, it is critical to have the necessary information ready to make the process easier, whether you are applying online, over the phone, or by mail. What you will need is as follows:
- Personal Details: This includes your-
- full name,
- current address,
- and date of birth.
These basic details help HMRC identify you correctly in their system.
- National Insurance Number
In the UK, your National Insurance (NI) number is essential for any tax-related transactions. It makes sure everything is properly accounted for by tying your UTR to your tax documents. - Business Information
Applying for a UTR for business purposes requires you to have ready information about your company. This contains-
the name of your company,- your registered office address/service address,
- and the nature of your business.
- Previous Tax Records (If Applicable)
If you’ve previously been registered for self-assessment or had any tax dealings with HMRC, you might need to provide details from past tax returns. This helps HMRC connect your new UTR with your existing records. - Contact Information
Make sure to include a phone number and email address that HMRC can use to reach you. This will be important for receiving updates and any follow-up information regarding your application. - Supporting Documents (If Required)
Depending on your situation, you may need to provide additional documents to verify your identity or business details. Having these ready can speed up the process.
How Long Does It Take to Apply for a UTR Number?
Applying for a UTR number typically takes about 10 days if you do it online or by phone. If you apply for a UTR number in the UK by post, it might take a bit longer, usually around two to three weeks. HMRC will send you a confirmation by mail or email once your application is processed. So, plan ahead to ensure you get your UTR in time for any tax-related deadlines.
Also, if you have limited companies, you may receive the UTR number by post after 15 days of registration.
Necessary Actions after Getting a UTR Number
Once you have your UTR number, here’s what you should do next to keep everything on track:
Keep It Safe
Make sure to store your UTR number in a secure place. You’ll need it for all your tax-related activities, so having it handy but safe is key.
Update Your Records
If you own a business, update all your records with your new UTR number. This includes your financial documents and any tax-related paperwork.
Inform Your Accountant
Let your accountant or tax advisor know your UTR number. They’ll need it to handle your tax filings and make sure everything is in order.
File Your Tax Returns
When it’s time to file your self-assessment tax return or any other tax forms, use your UTR number to ensure your submissions are processed correctly.
Monitor for HMRC Communications
Keep an eye out for any letters or messages from HMRC about your UTR or tax status. This helps you stay informed about any necessary actions or updates.
By following these steps, you’ll stay organized and on top of your tax obligations.
How Business Globalizer Can Help You?
If you are ever confused about whether you need a UTR number or not, you can talk to our legal experts. Business Globalizer can help you with everything from choosing business structures to filing returns, including forming a company in the UK. We offer different packages at affordable prices for UK company formation. If you choose any of these, you will get UTR by default.
Alongside this, you can seek our value-added services to activate or find your UTR to smooth tax affairs in the UK. We make sure to decrease your hassles by focusing on your business scenario and complying with legal obligations—so that you can focus on growing your business.
FAQs
Q1: How do I find my UTR number?
Answer: You can find your UTR number on your tax return, any correspondence from HMRC, or by logging into your HMRC online account.
Q2: Is the UTR number the same as a National Insurance number?
Answer: No, a UTR number is specifically for tax purposes, while a National Insurance number is used for social security and contributions.
Q3: Do I need a UTR number if I’m self-employed?
Answer: Yes, if you’re self-employed, you must have a UTR number to file your tax returns and manage your tax affairs.
Q4: How can a UTR number be reactivated?
Answer: If you have not used your UTR number for a long time—for example, by discontinuing to file your self-assessment taxes—it will become inactive. Upon restarting to file your tax return, your UTR number will be reactivated.
Q5: What should I do if I’ve lost my UTR number?
Answer: If you’ve lost your UTR number, contact HMRC directly or check any previous tax documents for the number.
Final Word
In conclusion, having a UTR is a key element in tax affairs, whether you choose to do it online, by phone, or by post. Having the right information at hand and understanding the expected processing times can help you apply for a UTR number in the UK smoothly.
By ensuring all your details are accurate and following the steps provided, you’ll be well-equipped to meet your tax obligations and stay on track with HMRC regulations.
