What is UTR and CTR?

The British UTR is the equivalent of a Polish tax identification number. Unique UTR numbers are assigned to natural persons earning revenue that form the basis for filing an annual tax return in the self-assessment system, as well as to businesses and other entities obligated to settle accounts with the British Tax Office. Corporate UTR is click-through rate.

How do you get a UTR in the UK?

The UTR (Unique Taxpayer Reference) number is a 10-digit number assigned to UK taxpayers. The number string may end with a letter. A unique number is given for life.

A natural person gets a UTR number after registering in the self-assessment system. The UTR number assigned to a natural person cannot be used to identify or fulfill the obligations of the company or other entity.
Each LLC gets a unique UTR number when registering with HMRC as a corporate tax payer. A company’s UTR is known as CTR (Company Taxpayer Reference).

Most importantly, the UTR number may be assigned and disclosed to the taxpayer with a certain delay. This fact should be taken into account in perspective of the deadline for filing the tax return for natural persons in the self-assessment system. In some cases, registering in the system before the deadline for submitting the tax return may result in the taxpayer not receiving the UTR number on time. A report without a UTR number may be invalid, which may result in a fine.

What is UTR?

Thanks to the unique UTR number, the Tax Office (HMRC) can easily check whether a taxpayer has filed and paid potential tax obligations on time and in the appropriate amount.

The UTR number allows you to monitor the tax obligations of individuals and companies.
It is used to define an individual taxpayer’s account in the HMRC system.
It enables the identification of tax returns, obligations and payments to the tax office by a specific taxpayer.

The UTR number simplifies the process of tracking tax obligations, which includes accelerating the payment of excess tax refund.

Who needs a UTR?

A UTR (Unique Taxpayer Reference) number is required to identify the taxpayer, calculate it at the tax office, file returns and other documents, and monitor tax due payments. It is used to identify companies and other entities as well as certain natural persons.

See also: How do I check my UK VAT number?

UTR Limited Company (CTR) – Each company at the time of registration in the Company House is given a UTR/CTR number. The number is used to identify the company’s tax. It is necessary to register a company online for tax purposes (corporate tax and as an employer in the PAYE system. It should be noted that companies can register with the HMRC tax office and the PAYE system in parallel with the registration (creating a company) in the Company House – in this case the UTR number is automatically completed in individual records.

UTR of a natural person – natural persons managing a UK company as well as directors and shareholders of UK limited companies are required to register with the self-assessment system and file annual tax returns. The obligation to register for a self-assessment system may also apply to individuals who receive any non-taxable income in the UK in an amount that gives rise to a UK tax liability.

It should be noted that the UTR number is also used for the purposes of cooperation with the accounting office representing the taxpayer. The unique UTR number identifies declarations and letters sent to HMRC and Company Hause by the accountant on behalf of the taxpayer.