What Is a Unique Taxpayer Reference (UTR)?
When starting a business or becoming self-employed in the UK, there are plenty of forms and numbers you need to keep track of. One of the most important identifiers you’ll encounter is the Unique Taxpayer Reference (UTR) number. It’s an essential part of your dealings with HMRC, and understanding it can help ensure that your tax filings and obligations are smooth and efficient.
In this guide, we’ll explain what is a Unique Taxpayer Reference (UTR), why it’s important for your business, and how to get one.
What Is a Unique Taxpayer Reference (UTR)?
A Unique Taxpayer Reference (UTR) is a 10-digit number issued by HMRC to identify you as a taxpayer. It’s unique to each individual or company and is used by HMRC to keep track of your tax obligations. Think of it as a national ID for your tax dealings with the UK tax authorities.
A UTR is required when:
- You’re filing your Self Assessment tax return (whether as an individual or a director)
- You’re submitting your company’s Corporation Tax returns
- You’re interacting with HMRC for anything tax-related
It ensures that your records are properly linked to your unique identity within the tax system.
Why Is the UTR Important?
Your UTR number is needed whenever you:
- File your tax return – Individuals and businesses need a UTR to file their Self Assessment tax returns with HMRC.
- Pay your taxes – The UTR identifies your payments, ensuring they’re allocated correctly to your tax account.
- Register for tax – If you’re setting up a limited company, you’ll need a UTR to register for Corporation Tax.
- Communicate with HMRC – When contacting HMRC, referencing your UTR ensures that you’re recognised in their system, whether you’re resolving an issue or asking questions.
It’s also required if you’re a company director, as it links your personal tax affairs with the company’s tax records.
Who Needs a UTR?
In the UK, any individual or business that:
- Pays tax or submits tax returns to HMRC will need a UTR.
- Is self-employed, either as a freelancer, contractor, or sole trader.
- Runs a limited company, as every company must be registered for Corporation Tax and receive a UTR upon incorporation.
A director of a limited company will also need their own UTR, in addition to the company’s UTR. So, if you’re both self-employed and the director of a company, you may need two UTRs.
