Also known as the TIN, the Tax Identification Number is widely used for tax purposes as well as for identification. In many countries, this is used by the government to identify taxpayers. To make each TIN unique, each country uses different rules in creating TIN for taxpayers.
A good example would be the United Kingdom. Here, the TIN is called the Unique Taxpayer Reference (UTR). Individuals in the country are given this number as well as the National Insurance (NI) number. Companies, which also pay taxes, are assigned Corporation Tax numbers.
How are UTR and NI numbers used?
The UTR is used by the HMRC so it can monitor all taxpayers. It is a code which is made to be unique so the HMRC can decipher if the number is assigned to a company or a taxpayer. It has 10 digits and at the end, it has the letter “K”.
On the other hand, the NI number is an individual’s account number. Each individual will be given a unique number and it is what that person will use his or her entire life. With this number, the HMRC can track each person’s paid contributions and taxes, and make sure that these are recorded properly.
Where can the UTR be found?
A person can go to the Government Gateway and then login there by putting in their login information. Once they are successful in doing so, the UTR can be found there. This online account is set up by an individual once they register for self-employment.
This account is handled by HMRC. Aside from the UTR, other information that an individual can find once they are logged in can be accessed. These include an individual’s tax returns, their correspondences with HMRC, as well as reminders sent by HMRC.
To find the UTR, one can go to the Self Assessment section. Another way to see the UTR would be to go to the account summary which can be accessed at the page’s top right corner.
If one does not want to go online, he or she can check correspondences sent by HMRC to get their UTR like the Tax Return. The UTR is also on the Statement of Account sent by HMRC. Any payment reminders from the agency as well as letters for late payments would also include the UTR. This number can also be found on the SA250, the first letter the HMRC sends to an individual when he or she first registers for self-employment.
Individuals who are self-employed should have the UTR because it is a very important piece of information that the government needs. It should also help individuals track their taxes and their payments. Some people may not be knowledgeable about this and so there are helpful guides like this that would allow them to learn more about this and how to get one. All individuals in the UK, especially those who are self-employed, should have this number as it is a requirement by the government of the country. Self-employed individuals may get additional help on other things like registered businesses addresses from companies like Company Address.
published under Tax and Legislation Guides
