If you’re setting up your limited company, or starting out as self-employed, you’ll come across the initials UTR. But what do they mean?
UTR stands for Unique Taxpayer Reference, and each is a ten-digit number unique to the individual or organization it’s given to. If you’re submitting your self-assessment tax returns, it’s this number you’ll use to make sure it’s filed for the correct person, you!
If you start a limited company, another UTR will be assigned, that’s because the company is its own legal entity and pays separate tax as a corporation i.e. it is a unique tax payer itself. Sounds confusing, but it’s not really. If you’re the director of a limited company you’ll have two UTR’s to keep a record of, one for you personally and one for the company for its tax obligations.
You’ll receive your UTR once you register for self-assessment as an individual, or registering a limited company for corporation tax. Once you receive it, it’s yours for life (or the life of your company).
Need more advice on how to use, apply for or find your UTR? Contact Ezyco Accounts today!
