What Is A Tax Reference Number?
- Adil Akhtar
- Oct 25, 2021
- 23 min read
Updated: Aug 29
What Is a Tax Reference Number in the UK? Unlocking Practical Tax Insights for Taxpayers and Business Owners
Picture this: You’re staring at a letter from HMRC, or perhaps your payslip, and you come across a curious alphanumeric code labelled as your "Tax Reference Number." What exactly is it? Why should you care? And how can this mysterious number help you verify your tax position, check your income tax liability, or even uncover if you’ve been overpaying?
Having spent over 18 years advising UK taxpayers and business owners—from city professionals in London to freelancers in Manchester—I’ve seen how straightforward tax matters can get muddled by terminology and jargon. This article aims to cut through the complexity and deliver clear, step-by-step guidance on Tax Reference Numbers, focusing on precisely how you can use this number practically. Whether you’re employed, self-employed, or running a small business, I’ll take you through real-world scenarios, common pitfalls, and actionable checks you can do today.
What Exactly Is a Tax Reference Number in the UK?
The term "Tax Reference Number" can mean different things depending on your circumstances. Broadly speaking, it refers to a unique identifier used by HM Revenue & Customs (HMRC) to track your tax records and transactions.
Different Types of Tax Reference Numbers
Unique Taxpayer Reference (UTR)
● This is a 10-digit numerical code issued by HMRC to individuals and businesses who must complete a Self Assessment tax return.
● Example: 1234567890
● This number is personal and unique to you (or your business if a company), and it's used for managing income tax, self-employment income, partnerships, or company tax.
● You’ll find your UTR on correspondence from HMRC related to Self Assessment.
Tax Office Reference Number (Employer PAYE Reference)
● Used mainly by employers, this number comprises a 3-digit HMRC office code followed by a slash and a unique employer payroll reference.
● Format example: 123/A12345
● This identifies your employer's tax records under the Pay As You Earn (PAYE) system.
● You will see this on your payslip or P60.
National Insurance Number (NINO)
● Though not strictly a tax reference, the NINO is closely related and used by HMRC and the Department for Work and Pensions to administer National Insurance contributions and social security.
● Format example: AB123456C
● You get it at 16 and keep it for life.
Why Are These Numbers Important?
Simply put, these numbers link your tax payments, payroll deductions, and correspondence to the right records in HMRC’s system. Without them, your tax details could get mixed up or lost.
● For employers, the Tax Office Reference helps ensure correct reporting and payment of income tax and National Insurance contributions.
● For self-employed individuals or companies, the UTR is the key identifier HMRC uses to process your tax returns, payments, and refunds.
How This Affects You: Real-World Case Example
Let me share a story. I once advised Sarah, a marketing consultant from Manchester who was also doing some freelance writing on the side. She thought her tax code was correct, but after a chat over a cuppa, we discovered Sarah’s payroll was using her employer’s PAYE reference but not factoring in her freelance income tracked under a different UTR she wasn’t aware of. Result? She was underpaying tax on her freelance earnings and risked a hefty bill later.
We used her Tax Reference Number and UTR to cross-check her income and make accurate Self Assessment filings—not only avoiding penalties but successfully securing a refund for overpaid tax from the freelance side once her records were updated.
The takeaway? Your Tax Reference Numbers aren’t just numbers—they’re crucial tools to verify the full tax picture, especially if you have multiple income sources.
2025/26 UK Tax Numbers and Key Rates to Know
Before we dive into specific steps to verify and use your tax references, here’s the latest tax landscape relevant for the 2025/26 tax year:
Tax Element | 2025/26 Figures |
Personal Allowance | £12,570 (frozen since 2021) |
Basic Income Tax Rate | 20% on income up to £50,270 |
Higher Rate | 40% on income £50,271 to £125,140 |
Additional Rate | 45% on income above £125,140 |
National Insurance Class 1 (Employees) | 12% up to £50,270, then 2% |
Scottish Income Tax Bands | Different bands apply (e.g., Starter 19%, Intermediate 21%) |
Welsh Rates of Income Tax | Vary; added on top of UK bands |
Why do these matter? Because your tax reference number is tied to these calculations. If your tax code is wrong, you might be paying the wrong amount at the basic or higher rate.
Step-by-Step: Where to Find Your Tax Reference Number(s)
● Payslip or P60: If employed, check your payslip or P60 form for your employer’s PAYE Tax Office Reference Number.
● HMRC Letters: Your Self Assessment tax return or any HMRC correspondence will show your UTR.
● Personal Tax Account: Use your personal tax account online to view your unique numbers securely.
● Contacting HMRC: If you can’t find your numbers, HMRC’s helpline is the fallback, but have your identification ready.
How to Use Your Tax Reference Number to Check and Calculate Tax Liability
Picture this: You want to double-check if your employer has applied the correct tax code or if you’ve paid too much or too little tax on your freelance income.
Here’s a simplified approach:
Find Your UTR or Tax Office Reference
Gather Your Income Details: Payslips, bank statements, invoices.
Access Your Personal Tax Account: This will show you the tax paid under each reference.
Calculate Expected Tax:
● Use your income figures and apply the 2025/26 tax bands.
● Don’t forget personal allowance and National Insurance thresholds.
Compare HMRC’s Records: Does the tax paid match what you calculated?
Handling Multiple Income Sources and Complex Situations
Many clients mistakenly assume one tax reference number covers everything. Not true.
● Employed + Self-Employed: You will have employer PAYE reference and a personal UTR.
● Partnerships or Companies: Unique UTRs for each entity.
● Scottish and Welsh taxpayers: Different tax rates need to be factored in.
● Emergency Tax Codes: If you started a job and tax was deducted at the emergency rate, your tax reference number helps identify the period and amounts.
Practical Anecdote on Tax Code Errors
I once helped a contractor hit by IR35 who was taxed too heavily under an emergency tax code due to HMRC misapplying their Tax Office Reference in PAYE. We identified the problem via tax reference cross-checks and reclaimed over £3,000 of wrongly deducted tax.
Understanding Unique Taxpayer Reference (UTR)
The Unique Taxpayer Reference, or UTR, is a fundamental component of tax administration in the United Kingdom. This ten-digit number is unique to the individual or entity it is assigned to and remains a constant identifier throughout the taxpayer's interactions with HM Revenue and Customs (HMRC). The UTR is a key element of the Self Assessment process, which allows taxpayers to report their income tax to HMRC.
The Self Assessment process is used by those whose financial affairs are not fully handled through the PAYE (Pay As You Earn) system, which is the case for most employees. Self Assessment may apply to individuals who are self-employed, partners in a business, or receiving income from rental properties, investments, and savings that is not taxed at source. Limited companies also have their own form of UTR, which is used to handle corporation tax matters.
Unique Taxpayer Reference (UTR) the Same as a Tax Reference Number
A Unique Taxpayer Reference (UTR) is a type of tax reference number, but the terms are not entirely synonymous. To provide a clear and comprehensive understanding, let's break down the distinctions and similarities:
Understanding Tax Reference Numbers
A tax reference number is a general term that encompasses various types of identifiers used by HM Revenue and Customs (HMRC) to track and manage the tax affairs of individuals and businesses. These numbers are essential for ensuring accurate tax reporting and compliance. There are several types of tax reference numbers, each serving a specific purpose.
Types of Tax Reference Numbers
Unique Taxpayer Reference (UTR):
Definition: A UTR is a ten-digit number issued by HMRC to individuals and entities that need to file a self-assessment tax return. It is primarily used for personal tax records and self-assessment.
Use Case: Self-employed individuals, company directors, and businesses that need to submit self-assessment tax returns.
National Insurance Number (NINO):
Definition: A NINO is a unique identifier used in the UK's social security system to track National Insurance contributions and benefits.
Use Case: Employees and individuals for tracking earnings, tax payments, and eligibility for social security benefits.
PAYE Reference:
Definition: A PAYE reference is used by employers to identify their payroll schemes and employees’ tax records.
Use Case: Employers managing payroll and submitting payroll information to HMRC.
Corporation Tax Reference:
Definition: A unique number issued to companies for managing their corporation tax affairs.
Use Case: Companies filing corporation tax returns and making payments.
VAT Registration Number:
Definition: A number assigned to businesses registered for Value Added Tax (VAT).
Use Case: Businesses involved in VAT-related transactions, including filing VAT returns and making VAT payments.
Unique Taxpayer Reference (UTR) as a Tax Reference Number
A UTR is indeed a type of tax reference number, but it is specifically used for the purpose of self-assessment. Here’s how a UTR fits into the broader category of tax reference numbers:
Specificity: The UTR is specific to individuals and businesses that need to file self-assessment tax returns. It is used to uniquely identify a taxpayer within the self-assessment system.
General Term: "Tax reference number" is a more general term that can refer to any of the identifiers used by HMRC, including UTRs, NINOs, PAYE references, corporation tax references, and VAT registration numbers.
Key Differences
Scope: While a UTR is specifically for self-assessment, the term "tax reference number" can refer to a variety of identifiers used in different tax contexts.
Application: Different types of tax reference numbers are used for different tax-related activities. For example, a NINO is used for National Insurance and employment-related tax records, whereas a UTR is used for self-assessment tax returns.
To answer the question directly: a Unique Taxpayer Reference (UTR) is a type of tax reference number, but the term "tax reference number" is broader and includes several different types of identifiers used by HMRC. Understanding this distinction is important for accurately managing tax affairs and ensuring compliance with HMRC requirements.
A UTR is necessary when filing a tax return; without it, HMRC is unable to process an individual's or company's records, leading to potential delays or issues with tax liabilities. It also serves to reduce the chance of errors or fraud within the tax system, as it unmistakably links tax records to the correct taxpayer.
Who Needs a Unique Taxpayer Reference?
UTRs are issued to:
Self-employed individuals who need to file a tax return, such as freelancers, consultants, and contractors.
Partners in a partnership business.
Trustees and representatives of someone who has died.
Individuals with complex tax affairs that include untaxed income or significant capital gains tax liabilities.
Limited companies and other corporate entities for corporation tax purposes.
If an individual is entirely taxed at source through PAYE and does not have any other income sources that would necessitate a tax return, they will not typically require a UTR.
Acquiring a Unique Taxpayer Reference (UTR)
The process of obtaining a UTR begins when you register for Self Assessment or set up a limited company. For those starting as a sole trader or entering a partnership, the first step is to notify HMRC of your new business status. This can be done online via the HMRC website.
Here are the steps to obtain a UTR:
Online Registration: Visit the HMRC website and choose the relevant Self Assessment registration form. For sole traders or individuals, form SA1 is needed, while partnerships use form SA400, and companies use form CT41G.
Information Submission: Provide your personal details, including your National Insurance Number and business details. For a company, you will be asked for the date of incorporation and registered company address.
HMRC Acknowledgement: Once HMRC has processed the registration, they will send an acknowledgment and eventually issue the UTR. For individuals, this will be sent by post and may take a few weeks. Companies receive their UTR shortly after incorporation and the number will be sent to the registered office address.
Activation: Some services, such as the online Self Assessment, require you to activate them using a code sent by post by HMRC. This must be done within a set period after you receive the code.
If you are an individual not currently in business but who needs to file a tax return due to other forms of income or gains, the process remains quite similar. You would need to register for Self Assessment to declare this income. Once you have your UTR, you can complete your tax return accurately and submit it to HMRC.
Checking and Verifying Your Tax Reference Number: A Step-by-Step Guide for UK Taxpayers and Business Owners
None of us loves tax surprises, but here’s how you avoid them by mastering your Tax Reference Numbers. Whether you’re an employee scratching your head over your payslip or a self-employed freelancer juggling multiple income streams, knowing how to verify your numbers, check your tax payments, and spot errors is crucial for peace of mind and financial control.
Step 1: Identify Which Tax Reference Number Applies to You
Before diving into verification, pinpoint the Tax Reference Number relevant to your situation:
● If you're employed: Look for the Employer PAYE Reference on your payslips or P60. This typically looks like a number/letter combo such as 123/A12345.
● If you’re self-employed or filing Self Assessment: You’ll need your Unique Taxpayer Reference (UTR) — a 10-digit number (e.g., 1234567890).
● If you run a limited company: Your business will have its own UTR, separate from your personal UTR.
● If you’re a landlord, investor, or have complicated tax affairs: You’ll likely have a UTR as well.
Step 2: Locate Your Tax Reference Number with Confidence
Your tax references are like your tax identity within HMRC’s systems. Here’s where to check:
● Payslip or P60: As an employee, your PAYE reference number appears on these documents under “Employer PAYE reference.”
● HMRC correspondence: Letters like your Self Assessment registration (SA250), payment reminders, or filing notices contain your UTR.
● Personal Tax Account: This is your safest bet; by logging in at HMRC Personal Tax Account, you can instantly access your UTR and PAYE references, plus view your tax code and payments.
● Employer or accountant: If you’re unsure or misplaced the documents, your employer’s payroll department or your accountant can provide the PAYE reference or UTR.
● Directly contacting HMRC: If all else fails, call HMRC (0300 200 3310) but be ready to verify your identity.
Be careful here, because I’ve seen clients trip up by mixing up their Unique Taxpayer Reference (for self-assessment) with their employer's PAYE reference, which causes mix-ups when dealing with HMRC.
Step 3: Use Your Tax Reference Number to Verify Tax Payments
Once armed with your correct Tax Reference Number(s), how do you check if everything’s in order?
● For employees on PAYE:
● Compare your year-to-date tax deducted (shown on your payslips or P60) against your actual tax liability calculated using your tax code, personal allowance (£12,570 for 2025/26), and income band.
● Log in to your Personal Tax Account where HMRC provides a tax calculation summary based on payroll submissions.
● Check if your tax code matches your employment situation; you can find this on your payslip or the coding notice HMRC sends annually.
● For self-employed or those filing Self Assessment:
● Use your UTR to review past tax returns and payment statements on your Personal Tax Account.
● Manually calculate your expected tax due using current rates and bands, factoring in allowable expenses and deductions.
● Verify payments on account or balancing payments made.
● If you find discrepancies, it’s essential to contact HMRC or an adviser promptly to avoid penalties.
Step 4: Calculating Your Tax Liability — A Simple Framework
Here’s a practical way to calculate if your tax deduction or payment matches what it should be. We’ll use a hypothetical example for an employee with additional freelance income:
Example: John from Leeds
John’s employed full-time with a salary of £40,000 and does freelance graphic design earning £15,000/year. John has:
● Personal Allowance: £12,570
● Income Tax Bands 2025/26:
● 20% up to £50,270
● 40% over £50,270
● Total income: £55,000
Tax Calculation:
● Taxable income: £55,000 - £12,570 = £42,430
● Income in basic rate band (up to £50,270 less personal allowance): £37,700
● Remaining £4,730 taxed at 40%
Tax owed:
● 20% × £37,700 = £7,540
● 40% × £4,730 = £1,892
● Total = £9,432
John’s PAYE via his employer only covers his £40,000 salary, so estimated tax deducted is roughly:
● Salary taxable after allowance = £27,430 (40k - 12,570)
● Tax deducted at 20% on this = £5,486
His freelance income tax (£15,000 gross) isn’t taxed at source. John will owe extra £3,946 (difference between total £9,432 and PAYE deducted £5,486) via Self Assessment based on his UTR.
Step 5: Checking for Overpayments or Underpayments
If you suspect you’re paying too much or too little:
● Use your Tax Reference Number (employer PAYE or UTR) to access the Personal Tax Account for detailed tax summaries.
● Overpayments: If overpaid, HMRC usually issues refunds automatically, but you can request one via Self Assessment or form R40.
● Underpayments: These could arise from incorrect tax codes or unreported income. Check letters from HMRC about penalties or payment demands carefully.
● Remember, if you’ve had an emergency tax code applied (common when switching jobs without HMRC having your previous details), your tax reference number will help
HMRC and you identify the affected period and rectify it.
Step 6: Special Considerations for Scottish and Welsh Taxpayers
If you’re in Scotland or Wales, tax rates and bands differ because of devolved tax powers.
● Check your tax bandings carefully on the Personal Tax Account; you still use your UTR or employer PAYE reference but apply different rate tables.
● For example, Scotland has a Starter Rate at 19%, Welsh rates vary annually.
● I commonly advise clients to check if HMRC has applied the correct nationwide or devolved tax codes linked to their tax reference number—errors here mean either too much or too little tax deducted.
Step 7: Business Owners and Complex Income Streams
If you run a business, your tax reference becomes a vital tool for managing tax liabilities across several fronts:
● VAT: Your VAT registration number is separate but linked to HMRC’s systems alongside your UTR.
● Corporation Tax: Your company’s UTR is essential for filing.
● Construction Industry Scheme (CIS): Your UTR is linked to your CIS tax dealings.
● Business expenses and allowable deductions should be carefully recorded and cross-checked with payments made via your UTR using the Personal Tax Account or accounting software.
UK Tax Reference Number (UTR) Verification Tool
A Handy Checklist for Verifying Your Tax Reference Number and Tax Position
● Locate your relevant Tax Reference Number (UTR or PAYE reference).
● Access your Personal Tax Account with the number handy.
● Review income recorded by HMRC against your payslips, invoices, or bank statements.
● Confirm your tax code matches your situation (check your P60 and coding notices).
● Calculate your expected tax liability using latest 2025/26 bands.
● Look for overpayments or underpayments.
● If discrepancies arise, gather evidence and contact HMRC or a professional adviser promptly.
Professional Tip from Experience
In my years advising clients in London and beyond, I’ve seen how small errors on tax codes or ignored tax reference numbers lead to costly surprises. For example, a client missed adjusting their tax code after switching between contracting and employment, resulting in double taxation. We solved it by verifying their UTR-linked Self Assessment record alongside their employer’s PAYE reference and successfully reclaimed overpaid tax.
How to Contact HMRC and Get Help with Your Tax Reference Number
So, the big question on your mind might be: What if I’m stuck or confused about my Tax Reference Number? How do I get help directly from HMRC without wasting hours on hold or faltering through their maze of contacts? Having guided many clients through this very maze, I know that timely, accurate communication with HMRC is absolutely vital — and knowing exactly which number or service to use can save you days of frustration.
Key HMRC Contact Numbers for Tax Reference Queries
HMRC operates different helplines depending on the type of tax query. Here’s a quick rundown tailored to your needs, backed by the latest sources as of August 2025:
● General Income Tax and PAYE enquiries (including verifying your tax code, correcting your tax reference, or checking payments):Call 0300 200 3300Available Monday to Friday, 8am to 6pm
● Self Assessment and UTR queries:Call 0300 200 3310This line is specifically for questions about your Unique Taxpayer Reference, Self Assessment registration, or filing issues.
● Construction Industry Scheme (CIS) queries:Call 0300 200 3210
● National Insurance queries:Call 0300 200 3500
● VAT and Corporation Tax queries (for business owners using their tax references):Call 0300 200 3700 for VATCall 0300 200 3410 for Corporation Tax
● Child Benefit related queries:Call 0300 200 3100
Tips for a Smooth HMRC Call Experience
When calling HMRC, be prepared with the following information to verify your identity quickly and get straight to your concern:
● Your Full Name and Date of Birth
● Your National Insurance Number
● Your Unique Taxpayer Reference (UTR) or Employer PAYE Reference, depending on your question
● Your full address as registered with HMRC
● Details of the tax year or period your question concerns
● Relevant documents such as P60, tax return copies, or previous HMRC correspondence
This preparedness helps HMRC staff locate your records fast and reduces call handling times significantly.
Alternative Ways to Contact HMRC
● Online Services & Personal Tax Account:HMRC’s online portal (https://www.gov.uk/personal-tax-account) allows you to view your tax references, tax code, payment history, and even chat with support via webchat for quick queries.
● Webchat:For many straightforward inquiries, HMRC’s real-time webchat is accessible via their website during business hours. This can often be quicker than calling.
● Postal Correspondence:While slower, some tax matters still require formal letters. Always send letters to the address specified on your tax correspondence. For general tax queries, the central address is:HM Revenue and CustomsBX9 1ASUnited Kingdom
What if You Lose Your Tax Reference Number?
A surprisingly common scenario. Clients often call or visit me when they've lost their UTR or employer PAYE reference, triggering anxiety about missed deadlines or penalties.
● If you’ve lost your UTR, you can find it on your tax return, Self Assessment paperwork, or by logging into your Personal Tax Account.
● If all else fails, call the Self Assessment helpline (0300 200 3310) and provide your identity details to request a reissue.
● Employers’ PAYE references are generally on payslips or P60s, but if unavailable, consulting your employer’s payroll team is the fastest way.
Real Client Scenario: Getting Through HMRC with Complex Tax Reference Issues
One client of mine, a contractor with multiple IR35 engagements, faced constant mix-ups with her tax references—HMRC was applying payments meant for one contract to another's tax record. After a seemingly endless phone battle, the turning point was when she armed herself with all her relevant tax references and documents and contacted the right HMRC department (Self Assessment line). Preparing all relevant numbers beforehand made all the difference; within a month we helped her get a full reconciliation, avoiding a potential £12,000 tax bill.
Making Tax Work for You: How a Tax Accountant Can Help with Your UK Tax Reference Number and Beyond
Be careful here, because I’ve seen business owners and self-employed individuals trip up over simple issues related to their Tax Reference Numbers that snowball into costly penalties or lost refunds. That’s where expert help can change everything.
Why Hiring a Tax Accountant Pays Off
● Accurate Record Keeping: Tax accountants ensure your Unique Taxpayer Reference (UTR), PAYE references, and other tax IDs are always correct and linked to the right returns.
● Tax Code Checks: I routinely perform tax code checks for clients, uncovering when HMRC applies incorrect codes or fails to factor in multiple income streams.
● Complex Income Handling: Business owners juggling dividends, salaries, rental income, and freelance work benefit massively from expert reconciliations using tax reference numbers.
● Avoid Penalties: Late filings or incorrect payments become avoidable with professionals monitoring deadlines tied to your tax references.
● Maximise Deductions: For self-employed and business clients, tax codes and reference numbers become tools to leverage all allowable deductions correctly, increasing cash flow.
● Dealing with HMRC: I guide clients through HMRC communications, ensuring tax reference issues get resolved efficiently and correctly.
Summary of Key Points on UK Tax Reference Numbers
A Tax Reference Number is a unique identifier used by HMRC to manage and track your tax records and payments.
This includes the Unique Taxpayer Reference (UTR) for individuals and businesses, Employer PAYE Reference for employers, and National Insurance Number (NINO) for individuals.
Your UTR is a 10-digit number issued when you register for Self Assessment, essential for filing returns and tax correspondence.
You find it on Self Assessment letters, your personal tax account, or by contacting HMRC.
Employer PAYE Reference numbers identify your employer’s payroll record under the PAYE system and appear on your payslips and P60.
They look like a 3-digit HMRC office code followed by a slash and unique employer number (e.g., 123/A12345).
National Insurance Number (NINO) is not exactly a tax reference but is essential for social security and is used in tax tracking.
It’s lifetime personal ID and appears on payslips and tax documents.
Your tax reference numbers are crucial for verifying that the right tax is deducted and paid for all your income sources.
Use them to cross-check HMRC records via your Personal Tax Account.
Different tax bands and rates apply depending on your tax jurisdiction (England, Scotland, Wales), so verifying tax using your tax reference helps avoid overpaying or underpaying.
Remember, Scottish and Welsh taxpayers have different tax rules.
If you have multiple income sources (employment + self-employment), you will have more than one tax reference number in play—understanding this prevents mistakes.
Emergency tax codes and changes of employment often lead to temporary issues with PAYE references and tax codes; using your tax references to check these changes is vital to avoid overtaxation.
Tax Reference Numbers facilitate communication with HMRC and are central to resolving any disputes or inaccuracies in tax payments or returns.
Knowing how and when to contact HMRC with your reference number is key.
A professional tax accountant can help you navigate complexities related to your tax reference numbers, ensuring accurate reporting, maximising deductions, identifying errors, and dealing with HMRC efficiently.
FAQs
Q1: Can someone change their tax code if it’s incorrect?
A1: Well, it’s worth noting that HMRC generally controls tax codes, but you can request a review if you think yours is wrong. I’ve had clients call HMRC with proof of additional income or expenses, prompting a corrected tax code that saved them hundreds. The key is to gather evidence like payslips, P60s, or contracts before contacting HMRC or getting help from your accountant. If left unchecked, wrong tax codes can mean overpaying or underpaying tax.
Q2: How does having multiple jobs affect your tax reference number and payments?
A2: It’s a common mix-up, but when you have multiple jobs, each PAYE job typically uses the same National Insurance Number but can have different employer PAYE references. Tax codes can differ, sometimes leading to emergency tax on the second job. I advised a client juggling two part-time roles to keep careful records and submit a Self Assessment return to reconcile these, avoiding underpayment penalties.
Q3: What happens if your tax is underpaid due to not declaring freelance income linked to your UTR?
A3: If you don’t declare freelance earnings tied to your UTR, HMRC can charge interest and penalties on the underpaid tax once identified. One client in Leeds forgot to declare side income from tutoring; we worked quickly to file a late Self Assessment and minimise penalties. Being proactive and using your tax reference number to clarify income helps you avoid this trap.
Q4: Are tax reference numbers affected by moving between England, Scotland, or Wales?
A4: Your tax reference numbers like UTR and NINO stay the same across the UK, but tax rates and bands linked to these numbers differ by region. For example, Scottish taxpayers have different income tax bands that HMRC applies using your tax code. It’s essential to check your tax code and personal tax account regularly to avoid over- or underpayment especially after moving between countries.
Q5: Can a tax reference number get duplicated or mixed up between family members?
A5: Thankfully, tax reference numbers are unique identifiers, so duplication is rare. However, in one case, I had a family where two members shared similar names and dates of birth, causing HMRC confusion by linking one’s payments to another’s reference. This was sorted by providing clear identity proof and official documents to HMRC. Always ensure your tax records reflect your correct personal information.
Q6: How does the tax reference number relate to National Insurance contributions?
A6: Your National Insurance Number (NINO) tracks your social security contributions and is often confused with other tax references. While your UTR and PAYE numbers handle income tax records, your NINO ensures NICs are accurately allocated. I've found that keeping all three numbers handy safeguards against mismatches in your tax or benefits records.
Q7: If a contractor is caught by IR35, how does their tax reference number usage change?
A7: Under IR35 rules, contractors' income may be subject to PAYE deductions through their employer’s PAYE reference rather than Self Assessment via their UTR. This impacts how tax is paid and reported. Working with my IR35 clients, I ensure their tax references are correctly registered so withholding is accurate and filing conflicts avoided.
Q8: What should self-employed landlords know about their tax reference numbers?
A8: Landlords generally use their UTR for declaring rental income in Self Assessment. It’s crucial to keep accurate rental income and expense records linked to your UTR. I once advised a landlord in Bristol who overlooked expenses because they filed under a general UTR without clear records, leading to higher tax bills. Organised records tied to your reference number can save serious money.
Q9: How does HMRC use the employer PAYE reference to process tax refunds for employees?
A9: The employer PAYE reference is key for HMRC to verify your income tax through payroll and adjust refunds because it links tax deducted to you via your NINO. In cases where tax codes are corrected mid-year, HMRC tracks repayments through this identifier. I often help employees reconcile their PAYE deductions through these references, resulting in timely refunds.
Q10: Can a business owner have multiple tax reference numbers?
A10: Yes! Business owners often hold several tax reference numbers: a UTR for Self Assessment, a PAYE employer reference if they have employees, and possibly VAT registration numbers. For instance, a restaurant owner I worked with had all three and nearly missed a VAT deadline due to confusing these. Keeping a clear log of each number prevents compliance headaches.
Q11: How quickly can you get a new UTR if you lose yours?
A11: Obtaining a replacement UTR usually takes 5 to 10 working days after contacting HMRC with identification. Because the UTR is tied to your Self Assessment registration, you must ensure you’re registered first. I advise clients to keep UTR details secure to avoid delays in tax filings or payments.
Q12: What happens if HMRC assigns you an emergency tax code?
A12: Emergency tax codes often lead to higher tax deductions temporarily because HMRC lacks full income details linked to your PAYE reference. I frequently counsel employees who’ve started new jobs mid-year and suggest reviewing your Personal Tax Account or speaking to HR with your tax references to correct this and reclaim overpaid tax.
Q13: Can a non-resident UK taxpayer get a tax reference number?
A13: Non-residents who have UK income or property usually need a UTR to file UK tax returns. I helped a client living abroad who rented out UK property; we registered for a UK UTR to report rental income properly. Working with HMRC across time zones can be tricky, but the tax reference number stays your anchor.
Q14: How should people with high incomes check child benefit charge using tax reference numbers?
A14: High earners must check their income against the High Income Child Benefit Charge thresholds, usually using Self Assessment linked to their UTR. It’s a common oversight in my practice; one client had multiple income streams affecting this charge but hadn’t reported it, risking penalties. Using your UTR helps to declare accurately and avoid surprises.
Q15: What if your tax reference number is required but you operate entirely through a limited company?
A15: Your limited company has its own UTR, separate from your personal one. When dealing with Corporation Tax, VAT, or PAYE for employees (including yourself as director), HMRC uses the company UTR. Misunderstanding this leads to filing errors, so I remind directors to keep business and personal tax references clearly apart.
Q16: Are there temporary tax reference numbers for expats or temporary workers?
A16: Yes, HMRC sometimes issues temporary reference numbers, especially for expatriates or seconded workers, to track tax and NIC before full registration. This number differs from NINO and UTR formats. I recently advised a tech expat in London on how to transition from temporary to permanent references smoothly, preventing payroll hiccups.
Q17: Do PAYE reference numbers show on official payslips, and what if they’re missing?
A17: Yes, your employer’s PAYE reference should appear on your payslip and P60. If missing, it can cause tax code confusion. In such cases, I’d recommend speaking directly to HR or payroll. Missing references sometimes hint at payroll errors that could affect your tax deductions.
Q18: How do side gigs or gig economy income impact tax references and filings?
A18: Side gigs typically require registering for Self Assessment and getting a UTR, even if your primary income is PAYE. This separates your tax records and payments. Clients juggling gig economy roles alongside full-time jobs often overlook reporting gig income until they get HMRC notices. Early registration using your tax reference numbers can prevent nasty surprises.
Q19: Can a self-employed person use their National Insurance Number as a tax reference?
A19: No, but it’s linked. Your National Insurance Number tracks NIC but not income tax returns—that’s the role of your UTR. I always encourage clear separation of these to avoid confusion during Self Assessment filings or PAYE reconciliations.
Q20: Is it possible to check online how much tax you’ve paid with your tax reference number?
A20: Absolutely. HMRC’s Personal Tax Account lets you log in using your credentials and view taxes paid, tax code details, and outstanding amounts—all linked to your UTR and PAYE references. I’ve guided many clients to use this as their go-to tool for real-time tax tracking, which helps them stay ahead of deadlines and spot errors early.
About the Author:
Adil Akhtar, ACMA, CGMA, serves as CEO and Chief Accountant at Pro Tax Accountant, bringing over 18 years of expertise in tackling intricate tax issues. As a respected tax blog writer, Adil has spent more than three years delivering clear, practical advice to UK taxpayers. He also leads Advantax Accountants, combining technical expertise with a passion for simplifying complex financial concepts, establishing himself as a trusted voice in tax education.
Email: adilacma@icloud.com
Disclaimer:
The content provided in our articles is for general informational purposes only and should not be considered professional advice. Pro Tax Accountant strives to ensure the accuracy and timeliness of the information but makes no guarantees, express or implied, regarding its completeness, reliability, suitability, or availability. Any reliance on this information is at your own risk. Note that some data presented in charts or graphs may not be 100% accurate.
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