What is a UTR number?

A UTR number (Unique Taxpayers Reference number) is the unique 10-digit reference number issued to every taxpayer in the UK by HMRC. This means if you are an employee that earns more than £100,000 if you owe tax on savings interest, dividends, or capital gains, if you are a business owner or sole trader, or you own a limited liability company, you will have a UTR number.

Who needs a UTR number?

Every sole trader and business partnership get a UTR number when registering for Self-Assessment with HMRC. You must register with HMRC within 3 months of starting a business or when you start earning £1000.

Newly incorporated companies, however, get one when registering with Companies House or when registering for corporation tax with HMRC if they chose not to do so during initial registration with Companies House. If you are an employee that earns more than £100,000 or owes tax on savings interest, dividends, or capital gains, then you must register for Self-Assessment with HMRC after which you will be issued a UTR number to pay tax.

How do I get a UTR number?

You can either register for self-assessment or corporation tax with HMRC to get a UTR number. There are three ways through which you can do this.

• Online – this is done via the HMRC website by registering for Self-Assessment. The number will be sent to you once you have successfully filled out the Self-Assessment form and submitted it.
   
• Post – write a letter to HMRC to request a UTR number. This can take longer (days) especially if you have not included the necessary details required to be issued one.
   
• Phone – you can call HMRC on 0300 200 3310 to request your UTR number even though you will still need to apply online or by post to provide the necessary details and documentation.

What information do I need to register for a UTR number?

It is important to have these pieces of information handy especially if you are applying by post to avoid too much back and forth between you and HMRC and also speed up the process of obtaining a UTR number.

The pieces of information necessary to keep handy include –

• Personal details like name, date of birth, address, phone number, email, etc.
• National Insurance (NI) number. You can apply for one if you don’t have one already.
• Date of business commencement if applicable
• Business or company registered office address and phone number
• Your business type using your SIC (Standard Industrial Code). This can be obtained via the Companies House or HMRC website.

Where can I find my UTR number if I lost it?

Do not panic if you cannot remember your UTR number or find where you wrote it. The UTR number comes with some documents you’ve been sent by HMRC. So, you just need to find them and check for the reference number on them. Here is a list of documents to look for -

• Your SA250 “welcome to self-assessment” letter
• Previous self-assessment tax returns or notice to file a tax return
• Personal tax account on HMRC website
• Statement of account

Alternatively, you can call the self-assessment helpline to request it and it will be sent to you via email or to your registered company address.

Why do I need a UTR number?

Here are a few reasons you need to have a UTR number

1. For proper tax filing – when filing your tax returns to HMRC, you need a UTR number unique to your business or company otherwise it will not be properly filed.
    
2. Avoid penalties and criminal prosecution – it is important to register to pay tax as and when due. This is to avoid being penalised by HMRC or possibly facing criminal charges for tax avoidance.
    
3. CIS (Construction Industry Scheme) tax refund registration – this is important for people in the construction industry. Without your UTR number, you cannot file for HMRC to refund your CIS tax payment via your company’s monthly payroll scheme.

The UTR number is therefore important to properly file tax returns and avoid penalties. Every business owner must obtain one within the threshold period of starting business transactions.