London, United Kingdom, May 2, 2017 (Newswire.com) - Taxation forms the biggest chunk in any government's exchequer, and thus extra measures are ensured in order to make the taxation schedule foolproof. Every government tries to formulate some all-fitting measures that could help them in processing the tax regime and putting in place proper measures to integrate the related government schemes.
Thus the tax departments and officials choose identity numbers that can be used in order to demarcate separate blocks to different entities in the database. These entities can be individuals, businesses or even accountancy firms.
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Sumit Agarwal, Founder & Managing Partner
What is Unique Taxpayer Reference (UTR)?
It becomes really difficult to manage the tax obligations and the tax records of such a big population in a country, and therefore it is only logical that a proper nomenclature is set up to facilitate the seamless taxation procedure. Unique Taxpayer Reference is a distinct code that is given to any individual or a company in order to manage their taxation related data.
This distinct number is provided to the individual by HMRC at the time of registration for self-assessment with the department. UTR is a 10-digit code that is used in the tax returns-related documents and for the identification of the individual or the company by the Department.
The UTR is acquired when the person registers themselves or the company with HMRC for self-assessment. The registration is also acquired if you set up a limited company. This issued number would be henceforth addressed as tax reference.
The UTR number can be found on any of the understated documents.
- It can be found in the annual tax return documents.
- UTR is available on the Welcome to Self Assessment letter.
- The taxation department sends payment reminders. UTR is mentioned in those letters.
- The registered individuals and the companies get a statement of their account. They can easily find the UTR in it.
- UTR is used as a reference number in the notice to file a tax return.
If you have lost your UTR number, then the most obvious step is to find any of these documents and re-record the UTR. But if any of these documents is not available, and there is no way that you can remember the UTR details, then it is advisable to contact HMRC and request for the same.
If you are trying to find your lost UTR number from HMRC, then you’ll be subjected to several levels of security checks to ascertain your identity. After the department is satisfied with you identity, they would send you the UTR number through a post. This whole process generally takes seven days after the security checks have been finished.
If the individual or the company has an agent appointed for handling the financial matters, then it is imperative for the said agent to have authorization from the individual in order to get past the security checks in place. HMRC goes through the same procedure for the agents as well; actually extra care is taken when representations are made through the agents.
HMRC has made sure to put a separate section of support for handling the cases of lost UTR and also to speed up the process of reissues. The individual, company or the agent needs to contact the HMRC helpline or get in touch with the local tax office to start the procedure of reissue.
What is National Insurance Number?
The United Kingdom uses a specific number for the administration of national insurance and social security system. This National Insurance Number is also termed as Personal Account Number. These numbers are generally allotted to the children born in the UK right at the time of their birth and are informed to them at the age of 15 years and 9 months. This number is considered essential for availing the child benefits in the UK. Those who aren’t UK citizens have to apply for the number at Department of Work and Pensions.
National Insurance Number is used widely for the purposes like in the applications for Individual Savings Accounts. This number is not used for filing tax returns and is also not considered a proof of identity. This number is essential for the right to work in the UK, and is also required to register to vote in most of the part of UK. National Insurance is required for the enlisting at the employment exchanges, and therefore it is very evident that if you do not have it, then your chances of a job are very bleak.
This number is usually sent to everyone just before they have turned 16 years of age, but in case there has been some mistake, and you do not get your National Insurance Agency, then you can contact on the helpline numbers dedicated to this is service, if your age still under 20 years. Post 20 years, the individuals need to file an application for the number with HMRC.
NIN is available on various documents like the pay slip, pension papers, taxation notices, and acknowledgments, etc. This is meant for the ease of the citizens who don’t have to go through extensive care in remembering the number. Now even after these safeguards, the individual loses the National Insurance Number, then it is advised to contact immediately to the HMRC helpline. In the absence of this document, the benefits like pension and other government incentives are subject to be missed, as the number can be required at the time of benefit procurement.
If one registers a request about a lost National Insurance Number, then HMRC can reissue the number after following the preset protocols. Several security measures have to be take in order to make sure that any unauthorized use of these government-authenticated numbers is avoided. After all the security checks have been performed, the department would send the number to your registered correspondence address through post. It takes around 10 days to finish up the process. This seems slow and unnecessary to some people, but telling such crucial details on the phone can be really dangerous for the financial privacy and security of the individual.
The identity-related numbers are set up in order to make sure that everything goes in properly set up fashion, without unnecessary commotion or confusion. The importance of these numbers has to be taken seriously, as they can be crucial in keeping anyone on the favorable government grid. While the most logical way is to keep this information properly recorded and saved for use, but in case they are lost due to any reasons, then the individuals shall make sure to get them reissued without any delay. This is important as the delays could lead to you missing out on any benefits as well. And anyway, it is advisable to inform the authorities if you lose any such crucial identity-related document.
DNS Accountants is a specialist of taxation and bookkeeping services that helps proprietor oversaw business to deal with their records and duty commitments. The firm has a solid reputation of supporting individuals with lost UTR number and national insurance number.
Source: DNS Accountants