HMRC’s backlog of registrations means that some taxpayers will need to consider settling self assessment liabilities before their unique taxpayer reference is issued. ICAEW’s Tax Faculty explains how this can be done.
HMRC has a significant backlog of applications to register for self assessment, particularly applications made using the SA1 form rather than the CWF1 form that is used to register self-employment.
The Tax Faculty is pressing HMRC to deal with these applications and issue the unique taxpayer references (UTRs) that are needed to file self assessment returns. However, it seems likely that some UTRs will not be issued in time for taxpayers to file 2020/21 returns by 31 January 2022 and to pay any tax due on that date.
ICAEW members have been asking whether it is possible for taxpayers to make payment when a registration has not been processed and they are still waiting for a UTR.
It is possible to make a payment in this situation, against the national insurance number (NINO) rather than the UTR (so it is not a solution for taxpayers with no NINO). As explained in HMRC’s guidance, pay your self assessment tax bill: by cheque through the post, this involves generating a payslip and posting it with a cheque to HMRC.
It is not possible to pay at a bank or online without a UTR. It may be necessary to contact HMRC once the UTR has been issued to ensure that the payment has been correctly credited to the taxpayer’s self assessment account.
Penalties
Late-filing penalties are not charged until at least three months from the date of the notice to file a return, so are not a concern where registration is delayed.
If the taxpayer has applied to be registered for self assessment by six months from the end of the tax year (ie, by 5 October 2021 for the 2020/21 tax year), that satisfies the notification requirement and failure-to-notify penalties will not be applied.
It may be important to make payment by 31 January 2022 to avoid interest charges and by 2 March 2022 to avoid a 5% late-payment penalty or where the 5 October deadline for notification of liability was missed.
FAQs
If you're not yet registered for a UTR with HMRC
You can register for a UTR with untied or directly with HMRC. You'll then get a UTR sent to you in the post, usually within 2-8 weeks (but it can sometimes take much longer).
Can I invoice without an UTR? ›
There's therefore no reason why they would need your UTR number, so it isn't necessary to include it on your invoices. The more unnecessary information you include on an invoice, the more difficult it will be for customers to find the information they actually need.
How do I get a self assessment UTR? ›
How do I get my UTR number?
- Register for HMRC's online service – make sure you have these bits to hand 👇 ...
- HMRC send your UTR number in the post (usually takes ~ 10 working days)
- Enrol for Self Assessment.
- HMRC will send your UTR activation code in the post (also usually takes ~ 1 week)
What happens if I don't pay on time? If we don't hear from you, we will contact you in one or more of the following ways: written notification, telephone call, in-person visit. If you do not work with us to pay the amount due, we will take collection action. This may result in additional fees.
Can you pay someone without an UTR? ›
Yes – but he must still be verified with HMRC first, and he will have to be paid under the higher rate of deduction – at 30%.
How to generate utr number? ›
The quickest way to apply is by registering for self-assessment online. You can provide HMRC with all of the information they need in one step, and your UTR number and activation code will be sent to you. You can also call HMRC, or write a letter requesting a UTR number.
Do self-employed people need to invoice? ›
Preparing and sending invoices is one of the most important parts of being self-employed. This is how you're paid for your work. So, you want to make sure your invoices say everything they need to. Writing up invoices for self-employed people can be a confusing task if you're new to it.
Is UTR number necessary? ›
Why do I need a UTR Number? A UTR number serves the primary function of identifying and monitoring financial transactions. In cases where fund transfers encounter issues, such as non-completion or incorrect amounts, banks rely on UTR numbers to track these transactions efficiently.
Can I use someone else's UTR number? ›
This is not allowed. A Unique Taxpayer Reference (or UTR) number is a ten-digit code that's unique to you or your company.
Does everyone have an utr? ›
A UTR (unique taxpayer reference) number is a 10-digit number completely unique to each and every UK taxpayer. Whether the taxpayer is to register for self-employment or is an individual or part of a partnership or company, a UTR number is needed to file a Self Assessment tax return online or via post.
While it usually takes between 10 and 15 days to receive your UTR once you have registered, it can take as long as 28 days during periods when we receive a higher amount of registration requests. If you still have not received your UTR, it is possible that there was an error in your application.
What if I don't have enough money to pay my taxes? ›
If you find that you cannot pay the full amount by the filing deadline, you should file your return and pay as much as you can by the due date. To see if you qualify for an installment payment plan, attach a Form 9465, “Installment Agreement Request,” to the front of your tax return.
How many years can you go without filing taxes? ›
Additionally, you have to consider the state you live in. For example, if you live in California, they have a legal right to collect state taxes up to 20 years after the date of the assessment!
How do I get my IRS debt forgiven? ›
Can I get my tax debt forgiven? 5 options to consider
- Use a professional tax relief service.
- Utilize the offer in compromise program.
- Request a currently not collectible (CNC) status.
- File for bankruptcy.
- Agree on a payment plan.
While it usually takes between 10 and 15 days to receive your UTR once you have registered, it can take as long as 28 days during periods when we receive a higher amount of registration requests. If you still have not received your UTR, it is possible that there was an error in your application.
How do I recover my lost UTR? ›
If you cannot find your UTR
Alternatively call the self assessment helpline to request your UTR (external link) if you cannot find any documents from HMRC.
How do I get my UTR number after payment? ›
The simplest way to find your UTR number is to check your bank account statements or passbook. When you initiate a transaction, banks provide a reference number or ID for that transaction, which is considered as UTR number.
