If you are a self-employed individual, you will be given a UTR number by HMRC to help them identify you within their organisation. This number is a unique code, which helps the HMRC keep track of Taxpayers in the UK. In fact, it will be used in a broad range of circumstances, not just for those in self-employment.
What is a UTR Number?
A UTR Number is short for Unique Taxpayer Reference Number. It is a series of ten digits that help the HMRC identify you. If you are self-employed, the number serves very similar to your National Insurance number, and helps HMRC locate your self-assessment Tax records. Not only that, it is can also be used to identify all of the different areas that are related to your UK tax affairs.
The UTR from the HMRC is important because you will need it when you fill out your annual self-assessment tax return. You also need it if you need to communicate with the HMRC for any other reasons.
How to Get a UTR Number
It can be a little tedious to request a new UTR number from HMRC as they don’t make the process easy. They typically require online registrations and authorisation codes to be issued. The UTR number can also take some time to be processed, so you should make sure you set aside enough time to apply. HMRC are currently stating the waiting period is four to six weeks, but in reality, this is closer to three to four weeks.
ConstructionTax can assist you directly with this, please click here to apply for your UTR today.
Where possible, you should try to apply a few months in advance as some companies need your UTR number to pay you for your work.
Lost UTR Number
If you have lost your UTR number, the first and best thing you can do is to contact HMRC directly. You can do this by speaking to your local tax office. Alternatively contact ourselves and we can request a copy on your behalf.
Since your UTR number is unique to you, just like how your passport number or national insurance number is, you will need to pass through a series of security checks before your number can be found.
Your UTR number can be found on your tax return, HMRC statement of account, payment reminders or late payment letters, or your SA250. This is a letter that gets issued to you when you first register for self-assessment, and this also notifies you of your UTR number. By looking at these past documents, you should be able to find your lost UTR number.
If you had set up an online account to manage your registration process and personal tax returns, you will also be able to look back and find your UTR number within the self-assessment section or the top, right-hand corner of your account summary.
Who Needs a UTR Number?
You need to have a UTR number from the HMRC for various reasons, not limited to being:
• Self-employed CIS subcontractor
• Member of a partnership
• Company director
• Have rental income
• Receive foreign income
This means that if you are either self-employed or you have set up a limited company, you will require this number in order to file the appropriate Tax return.
You are considered self-employed if you run your own business and take responsibility for its success or failure, can hire people to work for you at your own expense, sell goods or services to make a profit, or have several customers at a time.
If you are a trader who makes more than the set amount for personal allowance, you may need to pay taxes. This amount changes every year, so you should check to make sure. This rule applies to everyone who works, regardless of age.
UTR Numbers and Sub-Contractors
If you are a CIS subcontractor, you must register under CIS in addition to registering as self-employed for self-assessment. This, therefore involves two steps. You must therefore ensure that when you contact the HMRC to register as self-employed, you should also inform them about being registered as a CIS subcontractor as well.
If you are trying to register as a self-employed individual, you can do so by calling HMRC direct. However, if you know that you have already registered as self-employed, you need to register under the CIS scheme instead.
You can contact them at 0300 200 3210. Your UTR number is necessary, since your contractor will request it from you before you can get paid. This is so that they can determine which Tax deduction rate will be used.