If you’re new to the UK tax system, trying to get to grips with all the terminology can be overwhelming. One term you’re likely to come across is the “Tax Reference Number”. But what is it exactly, and why is it important?
In this guide, we’ll break down everything you need to know about the Tax Reference Number in the UK—what it is, where to find it, and how it’s used by HMRC.
What is a Tax Reference Number?
In the UK, the term Tax Reference Number usually refers to one of two identifiers:
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Unique Taxpayer Reference (UTR)
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Employer PAYE Reference Number (also called PAYE Reference or Employer Reference)
The context in which the term is used determines which one it refers to.
1. Unique Taxpayer Reference (UTR)
A UTR is a 10-digit number issued by HMRC (HM Revenue and Customs) to individuals and businesses who register for Self Assessment. This number is unique to each taxpayer and is used whenever you communicate with HMRC about your personal or business taxes.
Who Gets a UTR?
You’ll be issued a UTR if you:
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Register as self-employed or a sole trader
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Set up a partnership
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Start a limited company (in which case the company gets a separate UTR)
What Does a UTR Look Like?
It’s a 10-digit number, often formatted like:
12345 67890
Sometimes, it may appear with a “K” at the end (e.g., 1234567890K), especially in tax correspondence.
Where Can You Find Your UTR?
You’ll find your UTR:
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In your HMRC welcome letter (sent when you register for Self Assessment)
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In your Personal Tax Account or Business Tax Account (online via HMRC)
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On previous tax returns or tax-related correspondence from HMRC
Important: Keep your UTR safe. You’ll need it to file tax returns, check your tax account, and interact with HMRC.
2. Employer PAYE Reference Number
If you’re an employer or an employee, you may encounter a different kind of Tax Reference Number: the PAYE Reference.
This is issued by HMRC to every registered employer and is used to identify them when reporting employee pay, tax, and National Insurance contributions.
What Does a PAYE Reference Look Like?
It usually has two parts:
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A 3-digit HMRC office number
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Followed by a slash and a unique identifier
Example:
123/AB45678
Where Can You Find It?
If you’re an employee:
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Look at your P60, P45, or payslip
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Ask your employer or HR department
If you’re an employer:
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You’ll receive it in your PAYE registration letter from HMRC
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It’s available in your online employer account with HMRC
This reference is essential when submitting payroll, completing end-of-year tax reports, and when your employees need to provide tax details for new jobs or mortgage applications.
What’s the Difference Between a UTR and a PAYE Reference?
| Feature | Unique Taxpayer Reference (UTR) | Employer PAYE Reference |
|---|---|---|
| Who it’s for | Individuals & businesses in Self Assessment | Employers and employees |
| Issued by | HMRC | HMRC |
| Format | 10 digits (e.g., 1234567890) | e.g., 123/AB45678 |
| Purpose | Tax returns, Self Assessment | Payroll, employee tax reporting |
Why is the Tax Reference Number Important?
Regardless of whether it’s a UTR or PAYE reference, a Tax Reference Number is vital for:
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Filing tax returns
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Registering or deregistering for Self Assessment
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Communicating with HMRC
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Ensuring accurate tax deductions and compliance
Using the correct reference helps HMRC link your payments and records accurately, avoiding delays or errors in your tax affairs.
Common Questions
Can I have more than one UTR?
No. You should only ever have one UTR for your personal tax affairs. If you operate multiple businesses, they will still be tied to your single UTR—unless you are registering a limited company, which receives its own company UTR.
Do I need a UTR if I’m employed and not self-employed?
Not usually. If all your income is taxed through PAYE and you don’t have other income (like freelancing or rental), you may not need a UTR.
What if I lose my UTR?
You can find it in your HMRC online account, or you can call HMRC to request it—though they will verify your identity first.
Final Thoughts
Your Tax Reference Number is a crucial part of dealing with UK tax matters. Whether it’s your personal UTR or an employer’s PAYE reference, these numbers help HMRC keep track of tax obligations, payments, and filings.
If you’re unsure about which tax reference applies to your situation—or if you need help registering, filing, or managing your taxes—it’s worth seeking professional advice.
Accountants like Cox Hinkins, based in Oxford, offer tailored tax services and can help you navigate everything from Self Assessment to PAYE and business tax planning. Whether you’re self-employed or running a growing business, having expert support makes all the difference.
