What All Should We Know About a Unique Taxpayer Reference Number?

What is a UTR number?

The UTR is abbreviated as Unique Taxpayer Reference Number that connects to Her Majesty’s Revenue and Customs (HMRC) and is a series of 10 numerals. These numerals are unique and differ from person to person. This is sent by HMRC to individuals and establishments who are subject to the payment of tax. HMRC is responsible for the collection of tax and was started in the year 2005.It is key and without which an establishment or an individual subjected to tax payment cannot operate. If an establishment fails to notify HMRC, then it would be subjected to heavy fine and the worst case scenario would be that of facing criminal prosecution.

How to register for UTR?

It is a unique series of 10 numerals that is provided by HMRC. Once a person starts an organization or an establishment, they have to intimate HMRC, and the number will be sent by them. While sending the self-assessment tax return, the UTR should also be sent along with that. If the UTR is not sent, then the concerned individual has to pay a late penalty and obtain their UTR number.

Accountants in Manchester and all over the United Kingdom have witnessed cases where people become aware of UTR only after they send their self-assessment tax return. Every individual and company has to notify HMRC and receive their UTR on time, if not then they would be fined a late penalty.

Responsibilities of Accountants and financial advisors pertaining to UTR:

• The prime responsibility of accountants and financial advisors is to ensure that the company intimates HMRC in the first place. Running a company without the knowledge of HMRC could lead to severe legal obligations.

• After intimating HMRC, they would send the UTR which is important for a company to manage its tax obligations.

• Every document sent from HMRC would consist of the UTR.

• The UTR is associated with the company and acts as an identification mark for the company. Thus all establishments and self- employed business people should get the UTR and has to be the number one priority of accountants and financial advisors.

• Accountants in Manchester and all over the United Kingdom feel that as people who are responsible to handle money, it’s their responsibility to intimate their company and bosses to in turn intimate HMRC get themselves registered

UTR Number and its significance

It is key and without which an establishment or an individual cannot operate. The number is given by HMRC to let a company manage their tax obligations. Not getting a UTR can lead to serious late penalties and it’s mandatory for companies to get their Unique Taxpayer Reference Number. It’s important to keep the following things in mind while registering for self- assessment tax return and obtaining a UTR.

• Make sure you provide accurately and authenticated information while registering.

• It is advisable to have a financial advisor or an accounts service company to guide you and your company throughout the process.

• Details such as your full name, address, date of birth, business address and others have to be provided accurately. Make sure you cross-check the information before sending them in. HMRC is extremely particular about these details and will provide the UTR only if it’s a hundred percent authenticated.

What is the difference between a personal UTR and a Business UTR Number?

A personal UTR is given to an individual whereas a Business UTR is given for an entire company. Every businessman needs to have a UTR and can provide their personal UTR while paying their tax. By providing the Business UTR, the company’s taxes can be paid and the number represents the entire company whereas a personal UTR represents an individual. While paying taxes for the company, the personal UTR cannot be provided and the UTR assigned separately should only be provided. You should keep in mind that a UTR is a unique number and differs from individual to individual and from an establishment to an establishment.

How to store the UTR Number?

With the invention of technology, huge amounts of data can be stored easily and effectively. Important data such as UTR Number can be stored on computers in different locations so that the probability of the data getting lost is less. UTR number is of extreme importance and has to be stored for various purposes. Another way of storing the UTR is by filing the documents received from HMRC. HMRC always sends documents with the UTR number next to the heading Tax Reference, UTR or Official Use. Thus by filing these documents meticulously, one can lower the chance of losing the UTR. If you happen to lose your UTR Number, then you can contact the HMRC helpline number and request for the UTR number.

Things to take care while handling the UTR Number:

• Get your UTR by registering for self- assessment tax return with HMRC, and you will receive your UTR.

• Make sure to intimate HMRC when you begin a new company or an establishment.

• Without the knowledge of HMRC, a company cannot operate and will be fined for it.

• The UTR is a 10 digit unique numeral that is followed by the letter K at times.

• Always consult a financial advisor or an accounts service registering for self- assessment tax return.

• Provide accurate details to HMRC that are verified by your financial advisor.

• Remember your UTR and make sure your financial team does too. If not, then go through documents that are sent by HMRC to obtain your UTR.

• In the case of the UTR getting lost, you can contact HMRC’s helpline number and request them to send the number again.

• If you are a partner in any company make sure the company registers itself for self- assessment tax return with HMRC.

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