Payment of taxes and that too on time is essential for all individuals who are due for tax payments. Through this article, we aim to learn more about tax district and reference numbers and how to find them in your financial correspondence. We will also discuss how to file a tax return, the purpose of UTRs, as well as the details of income tax that apply to individuals and corporations.

Where Do I Find My Tax District And Reference Number?

Your tax district number is a three-digit number that appears before your ten digit Unique Tax Payer Reference (UTR). The purpose of this number is to indicate the location of the HMRC office where your tax records are kept so that it is convenient to update and review records while communicating with them. You can find your tax district number in any correspondence held with the HMRC with regards to UTR or Corporation Tax.

You will need a tax district number if you file your tax returns under the self-assessment system. For this purpose, you may fall into any of the below categories:

  • You are self-employed and your income was more than £1,000 
  • You earn through renting out property and your income was more than £2,500 
  • You earned through commission or tips in excess of £2,500 
  • You earn through savings or investments and your income was £10,000 or more 
  • You have sold a property or shares and have earned profits on them (Capital Gains Tax will apply in this case)
  • You are registered as a director of a profit-making organisation 
  • The joint income that you or your partner have earned was in excess of £50,000 and you claim Child Benefit
  • You have earnings from outside the UK 
  • You live abroad but you have earnings in the UK
  • The total amount of your taxable income was over £100,000
  • You are a trustee of a trust or a registered pension scheme
  • The State Pension you received during the tax term was your only source of income and was in excess of your personal allowance
  • HMRC issued you a P800 stating that you didn’t pay enough tax in the previous tax term

Before you start, you must make sure that you have the following documents available with you:

  • your National Insurance number
  • your ten-digit Unique Taxpayer Reference (UTR)
  • your Government Gateway ID
  • details of your untaxed income from the previous tax year (this includes income from rental income, dividends from shares, interest on savings, capital gains)
  • expense details related to self-employment or partnership status (receipts/invoices/bank statements)
  • tax-free/relieved charity contributions
  • P60 or other records with details of your income and paid taxes (if any)
  • pension income and pension contributions
  • redundancy payments or employee benefits

What Is A TIN Number used for in the UK?

A TIN Number is primarily a Tax Identification Number used to track and monitor the tax accounts of individuals. Although the term TIN Number is not specifically used in the UK in its strictest sense, the HMRC issues two TIN-like numbers to members of the public. The purpose and use of these are described below:

  • The Unique Tax Payer Reference (UTR): This is a ten-digit set of numbers issued by the HMRC to individuals and businesses who qualify for paying tax returns in the UK. You will find this number on the front page of the tax return (form SA100 or CT600). In addition to this, you will find it on a “Notice to complete Tax Return” (form SA316 or CT603) or a Statement of Account. It is also printed next to the headings of “Tax Reference”, “UTR” or “Official Use”; but the appearance and terms that are used will depend on the type of document issued. 
  • The National Insurance Number (NINO): This includes two letters which are followed by six numbers and then only one of the letters between A, B, C and D. Individuals residing in the UK will be issued a NINO once they are 16 years of age. They will be informed by the Department for Work and Pensions (DWP) or the HMRC. If you are an employee, you will find this number on your payslip as well as on a Statement of Account issued by HMRC. It links individuals to their records of national insurance contributions, tax payments, student loans as well as social security benefits.

Both of these numbers are not officially issued through a card or a document but are used during relevant correspondence from the HMRC, they remain permanent for life and their format will not be altered. 

What Do UK Companies Use Instead Of TIN Numbers?

Since TIN Numbers are not used in the UK while conducting business with international markets UK companies provide alternates to the TIN Number. These include the Unique Taxpayer Reference (UTR) and Company registration number (CRN). Both numbers are separate and are used for different purposes by UK companies. They are extremely important for businesses and will need to be provided during regular company administration. 

The UTR is issued to registered companies by HMRC once a limited company has been registered for Corporation Tax. In addition to HMRC documents, the UTS can also be found by logging into the online Corporation Tax account of businesses.

The Company Registration Number (CRN) is a unique combination of 8 characters, which consists of either 8 numbers or depicts 2 letters that are followed by 6 numbers. It is displayed on the Certificate of Incorporation of businesses. Among the many uses of a CRN include registering with HMRC, opening a company bank account as well communicating or trading with third parties.

How Much Tax Do I Have To Pay In The UK?

There are different types of taxes under the UK taxation system. Direct taxes include PAYE (Pay As You Earn) and National Insurance. These account for 20 per cent of an individual’s income. On the other hand, indirect taxes include VAT, council tax as well as duties on alcohol and petrol. 

Therefore, basic taxes in the UK include the following:

  • Income Taxes 
  • Property Taxes 
  • Capital Gains 
  • UK Inheritance Taxes 
  • Value Added Tax 

These are all progressive taxes; which means that the scale of taxes increases with an increase in income.

How Much Income Tax Do I Have To Pay In The UK?

Direct taxes are automatically deducted from your wages, income or pension before you receive them. This is termed as Pay As You Earn. Anyone earning equal to or less than £12,750 is not eligible for PAYE as the amount is considered under the law as an individual’s personal allowance. 

Incomes above the minimum cap are taxed at an incremental rate of 20 per cent to 45 per cent depending on whether an individual belongs to the basic, higher or additional tax rate band. Below are details of these bands:

  • 0 per cent income tax when income is up to £12,570
  • 20 per cent income tax when income is between £12,571 and £50,270 
  • 40 per cent income tax when income is between £50,271 and £150,000 
  • 45 per cent income tax when income is above £150,001

If you are self-employed, you are required to file a self-employed tax return in order to pay your taxes through a self-assessment. In the case of trading profits being assessed through self-assessment, your income tax rate will apply as follows:

Trading ProfitIncome Tax BandTax To Be Paid
Up to £12,5000%No Income Tax on first £12,500
Between £12,501 and £50,00020%20% Income Tax on your next £37,500 
Between £50,001 and £150,00040%40% on the final £2,000
Over £150,00045%No Income Tax paid at this rate

Which Incomes Are Tax-Free In The UK?

Incomes derived from any of the following sources are considered to be tax-free in the UK:

  • Transport costs of an employee’s (and their immediate family) relocation for work in the UK
  • Winnings from games, pool betting, lotteries or competitions with prizes
  • Long service employee awards (certain limitations apply)
  • Individual savings account amounting to £20,000
  • Incomes such as interest or dividends arising from savings accounts 
  • Pensions paid to war widows and dependents
  • Social security and state benefits include maternity allowance, employment and support allowance, attendance allowance, child tax credit and housing benefit. 

Conclusion:

According to a general estimate, an individual pays one-third of their income in the form of taxes in the UK. While the amount of tax one pays depends on the scale of their income, some people will pay a higher tax perhaps due to the property that they own or inheritance that they may receive. In most cases, especially with regards to self-assessment for filing of tax returns, you will need to refer to your tax reference number and your tax district number in case you wish to communicate with the HMRC with regards to previous tax records.

FAQs: Where Do I Find My Tax District And Reference Number?

Is the tax reference number the same as the NI number?

No, your tax reference number is used for self-assessment while filing a tax return; while your NI is used for social security. 

How do I get a tax number in the UK?

As an individual taxpayer, a UTR will be issued to you automatically when you apply for your tax self-assessment in the UK. The UTR is issued to registered companies by HMRC once a limited company has been registered for Corporation Tax. In addition to HMRC documents, the UTS can also be found by logging into the online Corporation Tax account of businesses.

How can I find my TIN number?

Since the TIN is replaced by Unique Tax Payer Reference in the UK, you can find this ten-digit set of numbers issued by the HMRC on the front page of the tax return (form SA100 or CT600). In addition to this, you will find it on a “Notice to complete Tax Return” (form SA316 or CT603) or a Statement of Account. It is also printed next to the headings of “Tax Reference”, “UTR” or “Official Use”; but the appearance and terms that are used will depend on the type of document issued.

Is it mandatory to file tax returns in the UK?

Yes, it is mandatory to file tax returns in the UK if your tax deductions have already not been made under the PAYE system.

What happens if you don’t file a tax return in the UK?

If you don’t file a tax return by the assigned deadline, you will be penalised. This means that in addition to paying the actual amount of taxes, you will also be paying an additional amount which can be up to £100.

Will HMRC tell me if I need to do a tax return?

No, HMRC will not tell you if you need to do a tax return; however, they will penalise you for not paying your tax on time. If your tax is not deducted through a PAYE system you must apply for a self-assessment to file your tax returns depending on the classification of your source of income.

References:

What Is My Tax District Uk? – ictsd.org

How Do I Find My Tax Reference Number? | The Accountancy Partnership

What is a Tax Identification Number | GoCardless

Jurisdiction’s name: United Kingdom Information on Tax Identification Numbers Section I – TIN Description The United Kingdom

Do UK companies have a TIN number?

What is a Tax Identification Number? | the West Brom

Income tax calculator 2022-23, 2021-22 and 2020-21

UK Tax Calculators

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