UTR (Unique Taxpayer Reference)

Short Definition: A unique 10-digit number used for tax identification.

Long Definition: A UTR is issued by HMRC when you register for Self Assessment. It is required for CIS registration and verification. Contractors use your UTR to verify your status with HMRC, which determines your deduction rate. Without a valid UTR, subcontractors are usually placed on the higher 30% deduction rate.