Tax refunds are great, everyone loves a Tax rebate from HM Revenue & Customs. In many situations overpayments of Tax occur without the Tax payer knowing, or even HMRC having any knowledge. Because of this, they never get paid but get swallowed up by the Tax office over time. Why does this happen? The reason […]
A UTR number (Unique Taxpayer Reference) is a ten digit number issued directly by HM Revenue & Customs, and is used to identify individual Tax payers within their system. UTR numbers are issued to individuals, companies, partnerships, trusts and other types of organisations. When you have registered with HMRC, they will usually issue you a UTR number automatically.
How Do I Register For a UTR number?
A UTR number is usually issued automatically by HMRC in the following situations:
- When you registered as self-employed sole trader
- When you registered as a partnership
- If you have formed a new limited company
- You have made HMRC aware of a trust liable to Income Tax
- You’re an individual, and have made HMRC aware of other untaxed receipts, such as rental receipts
Registering for a UTR number, for the majority, simply involves either a telephone call with HMRC. Alternatively, you can also do this online at their website.
What Do I Need a UTR Number For?
There are many reasons why you may need to use your Tax reference number. For the most cases, you will need your UTR number for the Tax office to identity your unique account with HMRC.
Circumstances where you might need to provide your UTR number:
- To create an online account with HMRC
- To register for individual Taxes with the Tax office
- If you are working within the construction industry
- For financial institutions (banks / building societies) to co-operate with anti-money laundry regulations
- Sometimes required when working for payroll agencies / organisations
How Do I Get My UTR Number?
In most circumstances, the UTR number is automatically issued by HMRC when they are aware that there is a requirement that you should have a Unique Taxpayers Reference. This will happen when:
- You register as self-employed
- You have incorporated a new company
Sometimes your UTR number can get lost in the post, if this has happened, you should contact HMRC at your earliest convenience. The Tax office are known to issue copy Tax reference numbers by second class post, so if you need it to file your Self Assessment Tax return, then make sure you have the number as soon as possible. Failure to complete your Tax return on time can result in late filing penalties.
Where Can I Find My UTR Number?
Your UTR number can be found a wide range of HMRC forms and notices:
- Your annual Self Assessment Tax Return (SA100)
- Any statements of account issued by HMRC
- Self Assessment Tax Return reminder notices
- Notice to complete a Self Assessment Tax return (SA316)
A UTR number is often called a Tax Reference number. They are both the same reference, a ten digit number e.g. “1234567890”.
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How to Claim a Tax Refund?
First of all, you need to make sure that you have overpaid Tax in the first place. This could happen for a number of reasons, including:
- An incorrect PAYE code was issued and your employer deducted too much Tax
- You have paid employee expenses, not reimbursed by your employer
- You have unclaimed allowances
- You have only worked for part of the Tax year and only claimed some of your personal allowance
- You are a higher rate Tax payer and have paid into a private pension, or made charitable payments under Gift Aid
Whatever the reason, if HMRC do not know about your overpayment, they cannot repay your Tax rebate. The first step is then to make the claim in the appropriate manner. Once they have recalculated your income Tax based on the new position, you account will be credited. At this time you will be able to apply for the overpayment to be credited to your account.
What is Tax Relief?
Tax relief is used by HMRC and Tax advisors to explain the allowances you’re entitled to for certain situations and expenditure. For example, HMRC offer Tax relief for individuals that drive their own vehicle for work related duties. Another form of Tax relief is an increase in your Tax free personal allowance to cover the costs of cleaning your work uniform.
Tax relief comes in many shapes and forms and is generally used to describe some allowance that doesn’t usually come automatically. Unless HMRC are specifically informed that you are due allowances and the amount, they will not take this into consideration when calculating your Tax. For this reason hundreds of millions of pounds worth of Tax rebates go unclaimed from HMRC each year.
Make sure you are claiming everything you are entitled to and get in touch today.
All of the necessary UK Income Tax and National Insurance rates and allowances for the Income Tax year 2016/17 – fiscal year ending 5th April 2017.
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