What is a UTR Number & How To Apply for One
UTR number
The UTR (Unique Taxpayer Reference) number is a unique 10-digit number assigned by HM Revenue and Customs (HMRC) to every individual or organization that is registered for taxes in the UK. The importance of UTR number lies in the following:
Identification
The UTR number is used to identify taxpayers in the UK tax system. It is unique to each taxpayer and is used to track all their tax-related activities.
Tax Returns
The unique taxpayer reference number is required to file tax returns in the UK. Without a taxpayer number, taxpayers cannot file their tax returns.
Tax Payments
The taxpayer number is used to ensure that tax payments are correctly allocated to the taxpayer’s account. It helps to prevent errors and delays in processing tax payments.
Communication with HMRC
The taxpayer reference number is used to communicate with HMRC about any tax-related matters. This includes making inquiries, requesting information, and updating personal details.
Business Transactions
The unique taxpayer reference number is also used in business transactions, such as applying for loans or opening a bank account. It serves as proof of a taxpayer’s tax registration status.
In summary, the reference number is an important identifier for taxpayers in the UK tax system. It is necessary for filing tax returns, making tax payments, communicating with HMRC, and conducting business transactions.
What is a UTR Number & How To Apply for One
A UTR (Unique Taxpayer Reference) number is a 10-digit code that is used by HM Revenue and Customs (HMRC) to identify individuals who are registered for self-assessment for tax purposes in the UK. It is a unique reference number that is assigned to each individual who is required to file a tax return.
Here’s how you can apply for a taxpayer reference number:
Register for self-assessment
Before you can apply for a taxpayer reference number, you need to register for self-assessment with HMRC. You can do this online or by filling out a paper form and sending it to HMRC.
Wait for your activation code
Once you have registered for self-assessment, HMRC will send you an activation code in the post. This code will allow you to set up your online HMRC account.
Set up your HMRC account
Use the activation code to set up your online HMRC account. You will need to provide some personal information, such as your name, address, and National Insurance number.
Apply for your taxpayer number
Once you have set up your HMRC account, you can apply for your taxpayer number online. You will need to provide some additional information, such as your date of birth and the reason why you need a reference number.
Wait for your taxpayer reference number
After you have applied for your reference number, you will receive it in the post within 10 working days.
It’s important to note that you can only apply for a taxpayer number if you are registered for self-assessment with HMRC. If you are unsure whether you need to register for self-assessment or how to do so, you can contact HMRC or seek advice from a tax professional.