If you’re starting a business or becoming self-employed in the UK, you’ll quickly encounter the term “UTR.” It’s a crucial piece of your financial identity, and without it, you can’t meet your tax obligations. This guide explains everything you need to know in simple terms.
What is a UTR Number?
A UTR, or Unique Taxpayer Reference, is a 10-digit number issued by HM Revenue and Customs (HMRC). It acts as a unique identifier for all of your tax affairs in the UK. Think of it as your personal or business tax file number.
The alphanumeric code is unique to you and is used by HMRC to track the tax you owe, whether that’s through Self-Assessment, as a company, or for other liabilities.
There are two main types of UTR numbers:
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Personal UTR (for Sole Traders and Individuals): Used when you register as self-employed or need to file a Self-Assessment tax return. This number stays with you for life.
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Company UTR (for Limited Companies): Issued to a limited company when it is incorporated with Companies House. This number is specific to the company itself.
Who Needs a UTR Number?
You will need a UTR if you fall into any of the following categories:
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Self-Employed Sole Traders: Anyone running their own business as a sole trader.
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Partners in a Business Partnership: Each partner in the partnership will receive their own personal UTR.
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Company Directors of a limited company (the company itself gets a UTR, and you will have a personal one for your director’s tax return).
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Individuals with complex tax affairs, such as those earning over £100,000 per year, or receiving untaxed income (e.g., from rental properties or investments).
What Does a UTR Number Look Like?
A UTR is a 10-digit code, often formatted with a forward slash after the first three digits (e.g., 123/456789). It is sometimes followed by a letter “K.” Do not confuse it with your National Insurance number, which is a separate identifier.
How to Get Your UTR Number
The process for getting a UTR depends on your situation.
1. For Sole Traders and Individuals (Self-Assessment)
This is the most common scenario. You get your UTR by registering for Self-Assessment with HMRC.
Step-by-Step Process:
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Go to the GOV.UK website: Navigate to the “Register for Self-Assessment” page.
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Start the registration: You will be asked a series of questions to determine if you need to register.
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Choose the correct reason: Select the option that best describes your situation (e.g., “I’m self-employed but not a partner,” “I have a new source of taxable income,” etc.).
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Provide your details: You’ll need your National Insurance number, personal details, and information about your business.
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Submit the form: Once submitted, HMRC will create your tax record.
Crucial Timing Information:
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After registering, it can take up to 10 working days (and sometimes longer during busy periods) to receive your UTR in the post.
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HMRC will send it via a physical letter to your registered address. They do not email UTR numbers for security reasons.
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You must register by October 5th after the end of the tax year in which you became self-employed.
2. For a Limited Company
The process for a company UTR is automatic.
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When you successfully incorporate a new limited company with Companies House, the information is automatically shared with HMRC.
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HMRC will then post the company’s UTR to the company’s registered office address shortly after incorporation. This UTR will be used for the company’s Corporation Tax return.
As a director of the company, you will also need your personal UTR to file your Self-Assessment return.
What to Do If You’ve Lost Your UTR Number
Losing your UTR is a common issue, but it’s easily resolved.
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Check your documents: Your UTR is printed on important tax-related documents from HMRC, such as:
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Your Notice to File a Tax Return (SA316)
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Your Payment Reminders (SA300)
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Your Company’s CT603 (Corporation Tax notice)
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Use your HMRC online account: If you are already registered for Self-Assessment, you can log into your personal tax account on the GOV.UK website. Your UTR will be displayed on the homepage.
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Call HMRC: If you cannot find it online, you can call the HMRC Self-Assessment helpline. You will need to verify your identity using your National Insurance number and personal details. They will then be able to provide you with your UTR over the phone or post it to you.
Conclusion
Your UTR number is a fundamental part of your financial life as a business owner or self-employed individual in the UK. While the process of getting one requires a bit of patience, it is a straightforward and essential step. By registering on time and keeping your UTR safe, you ensure you can meet your tax deadlines and run your business without any unnecessary hurdles.