UTR Number – Everything You Need to Know about UTR

A Unique Taxpayer Reference number (UTR) is like a secret code. It’s just for you or your business. It’s a 10-digit code. The tax department uses it to know who they’re talking to.

You use your UTR when you’re dealing with taxes. Like when you’re getting some tax money back. Also, when you’re filling out a form about your earnings.

If you work in trades and have a UTR, you need to fill out this form. You might even get some tax money back! RIFT can help you with this.

If you work for yourself and have a UTR, we can help you fill out the form. If you don’t have a UTR and want one, keep reading. We’ll tell you how to get it.

How to Get UTR?

Getting a UTR number is a vital process if you’re self-employed or own a limited company in the UK. Here are some steps that will get you through the process.

Register for HMRC Online Services

The first step towards getting your UTR number is to register for HMRC online services. You can do this by visiting the official HMRC website and following the prompts for registration.

Wait for Your UTR Number to Arrive

After you’ve successfully registered, HMRC will mail your UTR number to the address you provided during registration. This part of the process can take up to seven days.

Register for Self-Assessment

Once you receive your UTR number, you can then proceed to register for Self-Assessment. This is an important step as it allows HMRC to know that you’ll be filing a tax return.

Wait for Your UTR Activation Code

After registering for Self-Assessment, HMRC will mail another important document – your UTR activation code. This code is needed to activate your UTR number.

Activate Your Account

The final step is to activate your account using the UTR activation code sent to you by HMRC. Note that you must do this within 28 days of receiving your activation code.

Keep in mind that it is necessary to start this process several weeks before your first filing date. That way, you can easily avoid any last-minute rush. Also, once you get your UTR number, share it with your tax consultant. It’s to be on the safe side so that they can start working on your tax matters.

You will need some information to get a UTR number. It might be around the lines like:

Your name, date of birth, and address
Your National Insurance number
Your email address and telephone number
The name, address, and nature of your business
Your business phone number
The date your self-employment started

However, if you still don’t understand the process, you should hire a tax professional. You can also go to a trusted tax consultation service. They can guide you through the process and also can make sure that things are going on the right track for you.

When You need a UTR number

A UTR number is something you need if you have to tell the tax people about the money you earn. You have to do that if you earn around £100,000.

You usually need a UTR number if you own a business or you are an earning solopreneur. You might also need one if you made some extra money, like from a savings account or selling something big.

It’s like your school ID but for money stuff. It helps the tax people extract your records when they need to deal with your taxes. Your data or whole history is saved against this number.

Finding your UTR number is like finding where you left your favorite toy. It’s usually in places you’ve seen before.

Where to find your UTR number

If you did the process of getting a UTR number and now cannot find it, don’t worry. You can find it on letters or forms that the HMRC (the tax people) sent you. Some of these are:

A letter called ‘Welcome to Self Assessment’ (SA250).
Forms about your income or taxes.
Reminders to pay your tax.
A notice telling you to file a tax return.
Your statement of account.

What to do if you Lost UTR Number?

You can also find your UTR number on the HMRC website if you have an account there. Just log in and look for it.

If you still can’t find it, don’t worry! You can ask for help from RIFT Tax Refunds. They’re like treasure hunters – they can help you find your lost UTR number.

If you can’t find your UTR number, don’t worry! Try looking at the papers we talked about earlier. If it still needs to be added, you need to call the tax people, and they will help you.

Your UTR number is special, just for you, so keep it safe. If someone else gets it, they might pretend to be you, which can cause problems.

How do you get your UTR in the UK?

Online: Just like playing an online game, you can get your UTR number on the internet. Go to a website called HMRC and tell them you want to work for yourself. They’ll give you a UTR number in about ten days.

Phone Call: If you can’t do it online, don’t worry! You can call the Self Assessment helpline at 0300 200 3310. It’s like calling a friend, but this friend will send you your UTR number in the mail in about ten days.

You need to apply for your UTR number before a certain date, which is the 5th of October. And that’s it! It’s as easy as ordering a pizza or a toy online.

How Long Does It Take to Get a UTR Number in the UK?

To get a UTR number, you need to go online to the HMRC website and tell them you want to work for yourself.
After you’ve done that, you’ll have to wait a little while. If you live in the UK, it will take about ten days. If you live somewhere else, it might take up to 21 days.
You’ll get your UTR number in the mail, just like a letter from a friend. Sometimes, you can see your UTR number sooner if you check your Tax Account or the HMRC app on your phone or tablet.

Also, keep in mind that the days mentioned are only Monday through Friday, not including weekends or holidays. So, if you’re counting the days on your calendar, it might be longer.

Types of UTR Number

UTR numbers come in two types: Personal UTR and Business UTR. Here is an explanation what each means.

Personal UTR

A Personal UTR number is like your very own special code that the tax people, known as HMRC, use to keep track of how much money you make and how much tax you need to pay. It’s like your own secret sauce recipe but for taxes. You get this number when you tell HMRC that you’re going to start working for yourself and not for a company.

Business UTR

A Business UTR number is another special code, but this one is for your business, not just for you. If you decide to start selling something or provide some services, you might need a Business UTR. It help tax people know how much money your business makes and how much tax it needs to pay.

Whether it’s a Personal UTR or a Business UTR, it’s really important to keep these numbers safe and not to share them with anyone who shouldn’t have them. They’re like the keys to your secret tax world!

Difference between UTR and VAT

A UTR is a special code that’s just for you and the tax office, also known as HMRC. This number is used to keep track of how much money you make and how much tax you need to pay. It’s like your personal ID number for anything to do with taxes.

On the other hand, VAT stands for Value Added Tax. It is a different kind of tax. Instead of being about you and your income, VAT is a tax that gets added to the price of things we buy. So when you go to a shop and buy something, the price you pay includes VAT.

If you’re a business and you make more than a certain amount of money, you have to start adding VAT to the prices of the things you sell, and then you give that extra money to HMRC.

So, the main difference between a UTR and VAT is that a UTR is like your personal tax ID number, and it’s used to keep track of your earnings and calculate your tax. VAT, however, is a tax on goods and services, and it’s something that businesses collect from their customers and then pass on to HMRC.

Dealing with taxes can be tricky, so if you’re ever unsure, it’s a good idea to get help from an adult or a professional.

Understanding UTR numbers is essential for individuals and businesses in the UK, as this 10-digit Unique Taxpayer Reference is used by HMRC to manage your tax records efficiently. Whether you’re self-employed or managing a company, having a UTR ensures compliance with tax regulations and helps streamline filing processes.

Platforms like TangoPay make navigating such tax-related complexities easier by offering expert guidance and reliable financial solutions. If you’re unsure about obtaining or using a UTR, TangoPay can assist with resources and tools to keep your financial operations on track.

Conclusion

So, that’s the scoop on UTR numbers! A UTR number is a unique 10-digit code that’s only for you or your business. It’s like a secret ID number that the tax office, HMRC, uses to keep track of how much money you’re making and how much tax you need to pay.

Whether you’re self-employed or running a business, a UTR is important. It helps make sure everything is on board with your taxes. But remember, this number is super secret, so keep it safe and don’t share it with anyone who shouldn’t have it.

I hope this makes the whole concept of UTR numbers less confusing. Don’t worry if it still feels a bit complicated; dealing with taxes can be tricky even for adults. If you’re ever unsure, it’s always a good idea to ask for help from a professional.