Let’s be honest, learning about the tax system is one of the less thrilling aspects of moving to the UK. To make things easier for newcomers, we’ve put together a simple guide to filing tax returns in the country. This explains things like the tax-free allowance, what is a UTR Number and whether you’ll even be expected to file your own returns.
One important element of the tax process is the UTR number. But what exactly is it, and how do you go about obtaining one? Let’s take a closer look.
What Does UTR Stand For?
UTR is short for Unique Taxpayer Reference. It refers to the 10-digit number used to identify a person or business within the British tax system. UTR numbers are used when filing tax returns, claiming tax refunds, and other official tax-related business.
If your only source of income is from working as an employee, you probably won’t need a UTR number. That’s because you won’t file tax returns. Instead, tax payments will be automatically deducted from your salary under the Pay As You Earn (PAYE) system.
However, you will need a UTR number if you file your tax returns through the Self Assessment system. People who may need to do Self Assessment include:
- Self-employed workers
- Company directors
- Employees earning more than £100,000 a year
- Those earning money from other sources, like property rentals and investments
- Those who earn more than £50,000 a year and claim Child Benefit
It’s important to note that your exact personal circumstances will be the deciding factor. For example, not all company directors will need to do Self Assessment. Helpfully, the UK government website has a tool which will ask you a few questions and then tell you if you have to send Self Assessment returns. It takes just a minute or so to complete, and you can access it here.
How To Get a UTR Number
UTR numbers aren’t handed out automatically. You’ll need to register for Self Assessment to be assigned yours. The easiest way to do this is online, by creating a Government Gateway account here. This allows you to log into your online tax account and register for Self Assessment.
You’ll have to provide some personal information, including your National Insurance number. If you’re unclear about NI, you might want to take a look at our simple guide to National Insurance for immigrants.
Once you’ve registered for Self Assessment, you just have to sit tight for your UTR number to arrive in the post. This will take up to 10 days, or 21 days if you’re outside the UK.
What About Partnerships and Limited Companies?
A partnership is when you run a business with one or more other people, jointly sharing the profits and liabilities. In this business structure, one partner must be nominated to handle the tax affairs of the partnership. The nominated person can register the partnership online using their Government Gateway account. The partnership will then be assigned its own UTR number.
A private limited company is when your business exists as its own legal entity, separate from you. Creating a limited company means registering with Companies House, at which point you’ll be posted your company’s UTR. This will then be used when your company pays Corporation Tax.
What If You Lose Your UTR Number?
You’ll see your and/or your company’s UTR number on official HMRC correspondence, like letters reminding you to file tax returns. It doesn’t matter if the letters are from years ago, since UTR numbers never change. You can also log into your online tax account and look up your personal or company UTR number there.
Alternatively, you can request your UTR number by calling the Self Assessment helpline on 0300 200 3310. However, you can’t request a reminder of your limited company Corporation Tax UTR through that helpline. Instead, you can apply for it here.
