What is a UTR and what is it used for?

As a contractor you may have heard the term Unique Taxpayer Reference (UTR). But what is it, what is it used for and as an Umbrella Company employee do you even need one? 

In this blog we answer all those questions and more, to help you be an expert on UTR. 

What is a Unique Taxpayer Reference (UTR)? 

A Unique Taxpayer Reference (UTR) is a 10-digit number issues by HMRC that’s designed to identify you personally for tax purposes. An example looks like so: 12345 67890. 

You’re allocated a UTR when you register for Self-Assessment with HMRC. 

What is a UTR used for? 

You’ll only ever need a UTR for the following actions: 

• If you have other forms of income, such as freelance work, run a side business, have rental income, etc 

• When you file your Self-Assessment Tax Return (SATR) (both online and on paper) 

• When you pay the tax you owe outside of PAYE (eg a freelancer income) 

• If you need to speak to HMRC about your personal tax 

• If you’re setting up a CIS account (for those contractors in the construction industry) 

• If you’re receiving or repaying a student loan and manage them yourself 

• If you’re applying for certain types of mortgages or loans (if you’re self-employed some lenders may ask you for it) 

Your UTR is confidential information, and you should treat it as you would your National Insurance number.  

For example, if you were to register as self-employed with HMRC, they’d send you your UTR by post, and you’ll then need to use your UTR each year when filing your SATR. 

Do you need a UTR if employed by an Umbrella Company? 

Typically, an Umbrella Company employee does not need a UTR, as your Umbrella Company is responsible for handling your taxes (PAYE income tax, National Insurance, etc).  

What happens if you lose your UTR? 

If you lose paperwork that contains your UTR you’ll be able to find it on your Self-Assessment letters from HMRC, in your online HMRC account, or by contacting HMRC directly. 

UTR – final thoughts 

As an Umbrella employee that only works via your Umbrella Company, you can forget about your UTR — unless you have other taxable side income that HMRC needs to know about. If you’re unsure, speak to the SG Umbrella team who will be able to help you further.