UTR Number Explained: What It Is and How to Apply

As Benjamin Franklin once said, “Nothing is certain except death and taxes.” He was talking about the American economy, but his insight turned out to be a universal one. If you are a British taxpayer, you should know at least the basics of this domain. The unique tax reference (UTR) number is one of the things you can’t do without if you do business in Great Britain.

The article contains all you need to know about UTR: who needs it, its use cases, how to apply for a unique tax reference number, and what to do if you have lost it.

A Unique Tax Reference Number: Its Meaning and Importance

A UTR number is a unique taxpayer reference and identifier consisting of 10 digits used to track an individual’s tax account and match payments to bills. You can obtain a UTR number from His Majesty's Revenue and Customs (HMRC), the UK's authority responsible for collecting money that comes from taxes, customs, and other payments to fund national public services, such as education, healthcare, and infrastructure.

Does everybody need a UTR code? No, not really. However, it is mandatory for people and businesses whose income is not taxed at source (typically through a salary). The categories of taxpayers UTR applies to are self-employment workers (e.g., sole traders, electricians, mechanics, freelancers, personal trainers, tutors, hairstylists, etc.), landlords getting income from rent, members of a partnership or a trust, limited companies’ directors, and charities that file returns.

If you belong to any of these categories, you must submit a Self Assessment tax return online or by post within three months after opening a business. Note that you get a UTR number automatically when you register for Self Assessment. But this is not the only use case for a UTR. You can’t do without it when dealing with bookkeepers and accountants, paying tax bills online, or registering for Construction Industry Scheme (CIS) tax refunds.

What happens if you fail to get a UTR number, do it late, or misuse it? In the best-case scenario, your tax refunds will be delayed. However, you’ll likely also not be able to file tax returns for some time, which incurs hefty HMRC penalties, such as fines, interest on unpaid taxes, and even potential criminal prosecution for tax evasion, lack of due care, or non-compliance.

Where Can I Find My UTR Number?

If you have registered for Self Assessment, there are several HMRC-issued documents that quote it, namely:

• Statement of account;
• Welcome to the Self Assessment letter (aka SA250);
• Reminders of payment;
• Previous self-assessment tax returns;
• Notice to file a tax return.

Alternatively, you can apply for a unique tax reference check by visiting your HMRC personal tax account (the UTR is displayed at the top of the page) or via the official HMRC app (you can find the UTR in your tax account summary). If all else fails, you can call the HMRC helpline.

For a limited company, there is one more option: if you have the company’s name and registration number, you can request its corporation tax UTR online.

What Should I Do if I Have Lost My UTR Number?

Panic never does good, so calm down. Perhaps you haven’t lost it, and it’s still waiting for you somewhere. To make doubly sure, look through the documents and electronic sources mentioned above. If the UTR is still missing, call HMRC’s Self Assessment helpline at 0300 200 3310. Give them all the necessary details (including your National Insurance number), and they are sure to lend a hand.

Panic is bad, but total negligence is even worse. Once you register for a UTR number and receive it, keep it safe. If wrongdoers get hold of it, you are in for an identity theft with possible legal and financial implications.

Do I Need a UTR Number for Submitting a Tax Return?

If you are self-employed or own a limited company, having a UTR number is a must. HMRC uses it to identify your tax record and link your submitted return, payments, and potential refunds to the correct account. Without a UTR, you cannot access the Self Assessment system or complete a valid tax return, even if you know exactly how much tax you owe.

How Do I Apply for My UTR Number?

The only agency with the authority to issue unique tax reference numbers is HMRC. You can apply for it there, utilizing one of the following channels:

• Online application via HMRC's site. This is the fastest and therefore the most preferable method. You can register as self-employed or set up a limited company, and receive your UTR number by post within 15 days.
• Phone application. Calling HMRC involves more ado, since they may ask for some personal details, such as your National Insurance number, which you may not have on hand. Moreover, you may end up being directed to the online UTR application.
• Letter request. This is the most time- and money-consuming method. You’ll lose time because you’ll have to go through several rounds of back-and-forth messages with HMRC to provide them with the necessary personal data, which may take up to a few weeks. It will also likely be costly because you will have to defray ever-mounting postage fees to conduct this exchange. Definitely not the method to choose if you value your time or want to keep expenses down.

No matter what application mechanism you opt for, the outcome is the same: within ten days, you receive an activation code. Then, you use it to register your tax account online (see, you will have to go online anyway) and get a UTR. Remember that the code stays valid for 28 days.

Necessary Information to Register for a UTR Number

To go the whole nine yards, you should have the following information at your fingertips:

• Your name, address, and date of birth;
• Your National Insurance number;
• Your personal phone number and email;
• Your business address and phone number;
• Your business type;
• The starting date of your self-employment.

Final Thoughts

A unique tax reference number is a 10-digit-long index used by the UK’s tax authority (HMRC) to track a person’s taxes if the individual in question is self-employed or is an owner of a limited company. Such people are legally required to register for the Self Assessment scheme, where they are automatically assigned this number. If they fail or neglect to do so within three months after opening their business, they are subject to serious fines and even criminal prosecution for tax evasion. Moreover, without the UTR, you won't be able to claim a tax return or CIS tax refunds.

You can apply for a UTR number by letter, by phone, or on HMRC's website (the best method), and receive the activation code for registering your tax account online to be used within 28 days. To streamline the procedure, prepare all the necessary registration information in advance.