When you’re starting a new company, it can get a bit overwhelming with the long list of things that you need to do; sorting your finances and funding, getting your website up and running, working out a business plan, and that’s just to name a few.
And that’s all before you start your company formation with the appropriate authorities. You’ll probably come across a lot of acronyms throughout the process, but one of the most important ones is your company UTR number.
Fortunately, here at Mint Formations, it’s our business to help people like you get your businesses set up, so we know all about UTR numbers. That’s why we’ve put together this guide to help you understand company UTR numbers, what they are, why you need one and how you get one.
What Is a Company UTR Number?
Let’s cover the basics first, UTR stands for Unique Taxpayer Reference, and it’s a unique 10-digit number that HM Revenue and Customs (HMRC) issue to anyone who completes a tax self-assessment.
There are two types of UTR number available; personal and company. HMRC issues personal UTRs to anybody registered for self-assessment, whereas a company UTR number is a separately assigned number when your company is incorporated.
HMRC use these numbers to identify companies for all tax-related purposes. It’s essential to make sure you keep your UTR number handy as you’ll need it when you are:
- Adjusting your corporation tax accounting period
- Registering for VAT and PAYE
- Completing VAT and tax returns
- Informing HMRC that your business is now dormant
- Paying your employees (if you have any)
- Contacting HMRC for any business-related issues.
While it’s a requirement to have a UTR number, it also makes tracking your historical data and submitting new financial information incredibly easy.
Who Needs a Company UTR Number?
Anyone who is self-employed or receives income from other sources like a rental property will need to register for self-assessment and be issued a UTR number. This includes:
- Sole traders
- Limited companies
- Partnerships
But if you form a limited company, you’ll need a company UTR number. Companies House will inform HMRC, and they will issue your company a UTR number by sending a letter to your registered address. This letter will contain your number and guidance on your tax responsibilities.
How to Apply For a Company UTR Number
You’ll be issued with a UTR number when you register for self-assessment tax or form a limited company. Companies House will inform HMRC that your business has been incorporated and, within 14 days, send you a letter containing your company UTR to your registered office address.
Once you’ve started trading, you’ll need your UTR number to register as ‘active’. You’ll need to register as ‘active’ within three months of any business activity for Corporation Tax.
You can register as ‘active’ online or by post. If you are applying online, you’ll need your Government Gateway ID and password and your company UTR number. If you’re planning on applying by post, your company director or secretary must sign the application letter.
You’ll have to supply the following information to HMRC when you register your company as active:
- Company name
- Registration number
- The date you started trading
- Your business’s primary address
- Principal activities of your business
- Your business’s accounting reference date
You’ll also need to supply details of all of your company directors such as:
- Names
- Address
- National Insurance numbers.
What If I lose my Company UTR Number?
Regardless of how careful you are, everybody misplaces things from time to time and losing track of a UTR number isn’t uncommon. So if you lose your number, don’t panic. Because this happens quite frequently for businesses, HMRC has made it as easy as possible to rediscover your UTR number.
The best place to look first is through any office HMRC correspondence like tax and payment reminders. It doesn’t matter how old they are, as your UTR number doesn’t change. You might also have your letter of confirmation among your paperwork that will have your UTR on it.
But if you can’t find any letters, you can also use the Government Gateway. The online portal is where you file your tax returns and is an excellent place to find your UTR number. Just look under your account summary in the self-assessment section.
If you can’t find your UTR in either paperwork or online, then you can contact HMRC, and they will send it out to you. You’ll need to make a request online if you are a limited company, and HMRC will send your number to your registered business address to safeguard against fraud.
Other Company Numbers to Be Aware of
When you’re setting up a business, you’ll come across various information and be assigned a variety of different numbers for several purposes. You mustn’t confuse your UTR number with any of the other numbers you’re issued.
Is a Company Number the Same As a UTR number?
Your company number is usually your Company Registration Number issued when you register with Companies House and is used to identify your business. These numbers typically contain eight numbers or two letters, followed by six digits.
What’s the Difference between UTR and VAT number?
These two are understandably easy to confuse as they are both tax-related. HMRC will issue a VAT number to companies when they register for Value Added Tax. These numbers will have the prefix “GB” and nine digits.
Is a CIS Number the Same As a UTR Number?
If you register as part of the Construction Industry Scheme (CIS), your CIS number allows contractors to deduct tax from your earnings in a similar way to Pay As You Earn (PAYE). To register for CIS, you’ll need a UTR as you’ll still need to submit a self-assessment. It’s important not to mix your CIS number up with your SIC code which identifies what your business does.
Not Got a Company UTR Number?
If you haven’t got a company UTR number, then you’ll need to get one as soon as you can. A UTR number is a legal requirement if you are self-employed or running a business, as it is essential for you to file your tax returns. If you earn income outside of traditional employment contracts and don’t have a UTR number, you are liable for prosecution.
If you’re a bit overwhelmed by the requirements for setting up your business with all of the acronyms and paperwork, it’s worth considering a company formations agency, like Mint Formations. We’ll take care of all of the nitty-gritty details of getting your business up and running, including obtaining your UTR number and allow you to focus on making your business a success.
Need a hand getting your company UTR number set up? Our formation specialists can help you register your company and secure your UTR number. If you’ve got your UTR number and need help handling your current finances, have a look at our help and advice services.
