What Is a UTR Number?
UTR stands for Unique Tax Reference, a 10 digit code assigned to you and you alone. Your UTR exists entirely for tax management. It cannot be used as any other form of identification.
Do You Need a UTR Number?
Yes, you do need a UTR number. Every single piece of correspondence you receive from HMRC, and every self-assessment tax return you file, is assigned to your UTR number.
All this data is stored on the HMRC database, which means it’s incredibly easy for both HMRC and yourself to review historical information and submit new data.
Without a UTR number, it would be easy for things to get mismatched and lost. UTR numbers ensure the stability of financial information with HMRC, in a country with around 5 million working people, and a further 4 million small businesses.
With more than 9 million unique entities paying self-assessment tax every year, the Government has a lot to manage. HMRC needs a way to separate and monitor them all, and you need a way of making sure you can keep track of your tax return responsibilities and records.
How Do I Get a UTR Number?
Acquiring your UTR number is very simple. All you have to do is register as a self-employed worker. Once registered, you are supplied with documents containing your UTR number. If you want to get your UTR number without registering as self-employed, you need to contact HMRC directly to get your reference number. You can either do this by phone or post. Keep in mind this requires personal information to be shared, just as it does when you register for HMRC as a self-employed worker.