subject: Understanding The Unique Tax Reference Number [print this page] Now, the UTR is also known as the Unique Tax Reference number. This is a number that is meant for self-employed taxpayers, and it used to identify them when they are paying their taxes. It is a 10 digit number that is issued by the HMRC to people once they register with the Inland Revenue about their self-employed status.
Getting Your UTR Number
Now, assuming that you were employed by someone else or you have never had a job, but you would like to become self-employed, you will need to get a UTR number in order to file your tax returns in accordance to the law. For this reason, you will need to know what you should do in order to get your UTR number.
The first thing that you need to do if at all you want to get your UTR number is to register with the HMRC, telling them that you are self-employed. It is important to take note of the fact that you are supposed to notify them only when you have started the business. You cannot do it before you have started the business. In notifying them, you will need to give them details of your contacts, and when you became self-employed, among other things.
There three ways through which you can notify the HMRC about your new status and ultimately request for your UTR. You can choose to go online, you can choose to use the telephone, or you can choose to notify them through the post office. Once you have notified them that you are in need of a UTR number and after you have fulfilled all the requirements, what will happen is that you will wait for a few weeks and then receive your UTR. You however need to remember that you cannot receive your number through the phone or through your email. You will only receive it through the mail. The reason why this is so is simply because of the fact that the information is considered to be extremely sensitive and it should never fall into the wrong hands.
As you continue to study more about the UTR, it is important to realize that although being self-employed is something that a lot of people desire, a lot of responsibilities will come back to you especially those dealing with the payment of taxes. Unlike those people who are employed by other organizations, the self-employed do not have the benefit of PAYE to help them out.
