Introduction
The United Kingdom offers a high-quality life to its residents and ensures access to countless facilities, healthcare, and entertainment. Residents are required to pay a variety of taxes like corporate taxes, income taxes, individual taxes, consumption taxes, property taxes, etc. The taxation system in the UK is complex and strict.
Firm rules and regulations are established by the official taxation authority of UK HM Revenue & Customs (HMRC). Citizens must abide by all the regulations and be ready to face penalties in case of non-cooperation. Companies are under obligation to pay the corporation tax to do business in the country.
Keep reading this article to discover how to find a corporation tax reference number. If you are looking for the best accountants in Slough Berkshire, then get connected with MsAziz & Co Accountants for expert opinions about various financial and taxation issues.
Keep reading for How Do I Find My Corporation Tax Reference Number? Or check out List of Top 10 Accountants in Slough and How to Find a Company’s VAT Number?
What is Corporation Tax?
Corporation Tax is a corporate tax imposed on companies doing business in the United Kingdom. The tax is charged on the yearly profit of the company according to the rate set by HMRC.
Corporation tax is applied to both resident and non-resident companies.
- Resident Company: Resident companies that are based in the United Kingdom are liable to pay corporate tax on all their annual profits from all over the world.
- Non-Resident Company: Non-resident companies having offices in the United Kingdom are liable to pay corporate tax from the annual profit from the UK branches.
Corporation Tax Rates
The corporation tax rate is fixed by the UK government taxing authority HMRC. If your company’s annual proceeds are more than £250,000 then you will pay 25% of that amount in the name of corporate tax.
If the yearly profit of the company is less than £250,000 and more than £50,000 then HMRC provides relief and decreases the corporation tax rate from 25%.
If your company is making a yearly revenue that is less than £50,000 then your company is liable to pay 19% of the annual proceeds.
| Annual Profit | Corporation Tax Rate |
| More than £250,000 | 25% Corporation Tax (main rate) |
| Less than £50,000 | 19% Corporation Tax (small profit rate) |
| Between £250,000 and £50,000 | Corporation Tax Slowly Increase from 19% to 25% |
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What is the Corporation Tax Reference Number?
When you register your company with HMRC in the UK your company will be assigned a distinctive Corporation Tax Reference Number commonly known as Unique Taxpayer Reference (UTR). It will be a ten-digit exclusive number to recognize and trail the tax matters of the company.
Figure 1 https://www.1stformations.co.uk/blog/what-is-a-company-unique-taxpayer-reference-utr/
HMRC will send the UTR number after the registration process is done. The director of the company will receive the corporation tax reference number by post at the company’s address. Contact tax accountants in Slough for more comprehensive information about the UTR code.
Who Needs a Corporation Tax Reference Number?
As mentioned earlier Corporation Tax Reference Number identifies and tracks your company’s tax matters and affairs. It works as your business ID and is needed in various instances such as:
- Corporation Tax Returns: Company owners require a Corporation Tax Reference Number for filing tax returns of the company.
- Communication with HMRC Authorities: Directors of the company must tell HMRC officials the UTR code for communication of any problem with corporate tax.
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Ways of Finding a Corporation Tax Reference Number
The Corporation Tax Reference Number is allocated by the HM Revenue & Customs department of the United Kingdom. If you have lost your UTR number, then there are various ways to find it. Some of the ways are mentioned as follows:
- Company’s Official Documents: Go through the official registration documents of the company and you will find the UTR code
- Corporation Tax Return Records: Revise the corporation tax records of previous years to find the Corporation Tax Reference Number
- Company’s Annual Tax Summary: Every year HMRC provides the tax summary of the company where the Corporation Tax Reference Number might be mentioned
- Company’s Legal Documents: Inspect the company’s legal documents to find the Unique Taxpayer Reference Number
- Company’s Bank Statement: Review the company’s bank statements to catch the UTR number of your limited company
- VAT Registration Certificates: If your company is dealing in VAT-taxable goods or services then find the UTR code in the VAT registration certificate
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FAQs
Frequently asked questions (FAQs) are listed below for our followers:
Q1. Who must pay corporation tax in the UK?
Ans. The following must pay the corporation tax in the United Kingdom:
- UK resident company
- Non-resident UK company with outlets in the UK
- Clubs or unincorporated organizations such as trade associations, community groups, sports clubs, etc.
Q2. What is the difference between Corporation Tax Reference Number and Unique Taxpayer Reference (UTR)?
Ans. There is no difference between a Corporation Tax Reference Number and a Unique Taxpayer Reference (UTR) as they both are the same.
Q3. Can I use my personal UTR number as my company’s UTR?
Ans. Your personal UTR number cannot be used as your company’s UTR number because they both are different and issued by HMRC for different purposes.
Q4. Is it safe to share the UTR number or Corporation Tax Reference Number with others?
Ans. UTR number or Corporation Tax Reference Number can be shared with government authorities and concerned individuals as it is not something confidential. However, it is advised to not share UTR with unknown people or on the internet.
Q5. Are Corporation Tax Reference Numbers and Tax Codes the same?
Ans. No, the Corporation Tax Reference Number and tax codes are not the same. Tax codes are for tracking income tax withholding and the Corporation Tax Reference Number is used for trailing the company’s tax payments and other associated records.
Q6. Who is not liable for marginal relief from corporation tax in case of annual profits between the small profit rate and the main rate?
Ans. Marginal relief in corporation tax cannot be claimed by the following companies:
- Non-resident company
- Close investment holding company
- Company with profits over £250,000
Conclusion
In this blog, we gathered information about corporation tax and how to find a Corporation Tax Reference Number which is also called UTR code. UTR number is used by HMRC to track your company’s corporation tax payments. We hope you found this article informative. Keep following MS Aziz for more information or check out How Far Back Can You Claim VAT on Expenses in the UK?