What is a UTR Number?

UTR Advice – Do I Need One?

If you’re wondering what a UTR number is and who needs one, you’ve come to the right place. UTR stands for Unique Taxpayer Reference number and it is made up of 10 digits, unique to each person. This number is provided to self-employed workers by HMRC and is used to verify to their employer or agency that they have registered as a sole trader. The liability of tax and National Insurance would fall on the worker, the earnings of which are communicated through an annual tax return/ self-assessment.

If the worker is seeking to contract under the CIS (Construction Industry Scheme), they will need their UTR number to be verified by HMRC in order to be taxed at 20%. Those that cannot be verified, are automatically taxed at 30% until HMRC have approved their status.

Whether the worker is a sole trader in the construction industry or not, the employing company, as well as umbrella payroll company (Futurelink Group in our case) will insist that the UTR number is provided.

Why do I need a UTR Number?

Contract workers require a UTR Number in addition to their National Insurance number to complete their annual self-assessment tax return. HMRC use this number to identify the worker as a self-employed tax payer. For those on gross status, where tax is not being deducted at source, the worker must retain enough funds to cover their potential tax liabilities. Those in the construction industry regularly receive a tax rebate as the 20% tax deducted at source, means they may have contributed too much tax.

If workers are found to be operating as self-employed without having notified HMRC, they could be subject to heavy fines and potential criminal prosecution.

It is for these above reasons that Futurelink Group requires all operatives to provide us with a UTR number, so make sure it is kept safe.

Where can I find my UTR Number?

The fastest way for workers to obtain their UTR number is by logging onto the online services area of the HMRC website. Alternatively, if you don’t have access to HMRC’s online services, you’ll be able to find a copy of your UTR Number on a previous self-assessment tax return.

Benefits of using Futurelink Group

When you engage with the Futurelink Group to invoice your client, there are some key benefits for all parties:

  • To remain fully compliant with IR35 and Onshore Intermediary legislation
  •  Retain your self-employed tax status while on the contract, thereby avoiding employer’s NI costs, subject to an SDC test
  • Provide peace of mind to your client/agency that all necessary taxes are being deducted
  • Includes all essential insurances such as Public, Employer’s and Personal Accident cover
  • Online Portal access to all your payslips, and where necessary, invoice requests can be made
  • Same Day Faster Payments – Monday to Friday
  •  Receive text messages every time you are paid

Futurelink offers the following self-employed payment solutions:

If you require any more information on UTR’s or our services, then please feel free to call us on 01923 277900.

Alternatively, you can request a call back by clicking the button below and one of our customer service team will be in touch!