Your Unique Tax Reference (UTR) is an essential part of running your company. This is how the UK government will ensure that you are paying the tax owed to them. It will also ensure that when you do pay your company’s taxes they are properly registered.
This is something that you will receive automatically. Your company formations agent will give you the reference number soon after you open your company. This is not something you have to apply for yourself because HMRC is automatically notified whenever a new company comes into being.
It comes in the form of a ten-digit reference number. You may also see it being referred to as a corporation tax reference.
Where Can You Refer to Your UTR?
Your UTR is going to be printed on practically all official communications between your company and HMRC. It will likely be positioned next to something that refers to something like ‘Official Use’. Whenever you receive a notice to deliver a company tax return, you’ll usually find this.
But make sure that you don’t confuse your company UTR and your personal UTR. Since you are doing business in the UK, you will also have to pay your personal taxes. This is received when you register as an individual for self-assessment.
What is it Used For?
Your company formations agent will need this number to make sure you are registered for corporation tax. You don’t need this number to form a limited company in the UK. One of the mistakes people make when forming a new company online is they think they need their tax information before they do it.
Due to HMRC acting independently, the various pieces of tax information is sorted out after forming the company. After your agent opens your company, you will receive a letter at your registered office address that explains your tax obligations in full. Your company is required to submit certain documentation when it begins trading.
Your agent will be able to help you with the documentation you need to submit to HMRC.
What Does HMRC Need from You?
Now you will see the value of having an agent because despite the fact the incorporation process is simple the tax side of things isn’t. Your agent is able to submit all required information on your behalf to HMRC. The following information is required to be submitted within three months of actively trading.
First, you will have to set a start date for when your company begins trading. This determined the corporation tax accounting period. This should be accompanied by information like your registered office address and your company registration number.
Your agent will also help you to obtain a SIC code so you can explain your principal business activities to HMRC.
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What Happens Afterwards?
After your agent has filled out the relevant information, HMRC will send you another letter. This will be to your registered office, once again. The deadlines you have set for your accounting periods will be confirmed. You will be required to deliver your company tax returns by these dates, or you will face a penalty.
Corporation tax has to be paid at least 9 months and 1 day following each accounting period, although the actual return has to be filed long before then. You can appeal to HMRC to have your accounting period changed, but this is entirely down to their discretion, and you must have a good reason for making the request.
Your Company Formations Agent
A company formations agent can do far more for your company than you think. The tax affairs relating to your company can get complicated, especially if you don’t happen to be a UK national. They can help you to submit all the relevant information to the right bodies.
You don’t want your company to get off to a bad start through incurring a fine from HMRC or any other arm of the UK government.
Make sure you work with the agent and submit the information in good time. Your agent can only help if you are timely with the submission of the documentation needed from you.
What are your top questions for dealing with your UTR in the UK?
