Do UK Companies have Tax Identification Numbers?

Ryan Patrick

• 5 min read
Do UK Companies have Tax Identification Numbers?

To create a company in the UK, you must have essential details of different tax identifiers, such as tax identification number (UK TIN). Whether your company is in the UK or abroad, it's your responsibility to pay your company taxes. That's why understanding the terms of UK TIN is crucial.

In this guide, you'll learn all about UK TINs, key terms, and various UK TINs for business tax management. Let's get started.

What's the TIN?

The TIN numbers are vital in identifying taxpayers and help streamline the national or overseas administration of tax affairs in limited companies. TIN is a combination of letters, symbols, and letters, but according to the country of issue, the length and format may vary. Every TIN is unique and represents a single company or an individual. That's why it's advisable not to share your TIN, and you must store it safely.

Is TIN used in UK companies?

The term TIN is not mostly used in the UK unless you're dealing with a foreign company or when dealing with American or European Union authorities. However, the UK offers a similar number to use if you are

  • Doing business with an abroad company
  • Running a business overseas
  • Taking financial transactions abroad

In other instances, countries will request you to provide your UK TIN or its alternative before proceeding with a business or transaction. However, this shouldn't worry you because we've researched which alternatives you should as a business owner.

TIN Numbers Alternatives in the UK

If you live in the UK, and you create a company, you must familiarise yourself with TIN alternatives that identify your business. They are:

Unique Tax Reference (UTR)

UK UTR number is closest to the TIN. You will get a UTR once you register your limited company or when you engage in self-assessment with HMRC. This UK UTR identifies you or your business as a taxpayer.

After registering your company, you receive your UTR immediately, although it may take about 10 days to reach you via mail. The UTR is 10-digit number, and you will find it on different HMRC  documents like:

  • Tax return notice
  • Account statement
  • Self-assessment
  • Payment reminders

Additionally, when you log in to your HMRC online profile, you will find your UTR there, but if you don't, contact HMRC customer service for assistance. After issuance of the UTR number, it will never change, so it is crucial to store it safely and securely to prevent fraud or theft.

You need the following to register for a UTR

  • Full name
  • Date of birth
  • Your address
  • National insurance number
  • More so, you need to specify your business activity and other details.

When do I Use the Company UTR?

There are several occasions where you will need to use your business's UTR number. These include:

  • When registering a business for Corporation Tax
  • Registration for your company value-added tax
  • Payment of VAT when paying corporation tax
  • When registering for pay as you earn
  • When paying your business employees
  • Filling VAT returns
  • For annual corporation tax return filings
  • When you want to inform HMRC about a change of business
  • When changing corporation tax accounting time
  • When informing HMRC your business has become dormant

How to Find Lost UTR?

If your UTR is completely lost, you can request it from HMRC. To request it, you must provide your company registered name and company registration number. After the request, the tax UTR is sent via post to your business registered address provided on the Companies House.

However, your company will be unable to request this TIN in case of the following:

  • The company is officially closed or dissolved
  • If your company is stuck off and doesn't appear on Companies House public register of companies
  • Suppose your company changed to another business structure. For example, change to partnership and is not a registered company any more.

Company Registration Number (CRN)

The Companies House issues business owners CRN, which is different from the UTR, to register companies with them. This is an eight-digit number assigned to incorporated companies. You receive the CRN when you register a limited company or limited liability partnership. Your business CRN is public, and anyone can view it on the Companies House, an online public register of companies.

Although you won't use this code in taxation matters, CRN is vital, so keep it safely in your record. Business owners provide CRN in these scenarios:

  • Confirmation statement: you must provide CRN when filing a confirmation statement annually to identify your company
  • Open bank accounts
  • Company accounts: you file this annually, and you need to provide CRN
  • PAYE: you need to provide CRN when registering with HMRC
  • VAT: you will provide CRN when registering for VAT with HMRC
  • Shares: you must include CRN during issuing shares certificates or filing the Return Allotment of Shares
  • When appointing or removing company secretaries or directors, you need CRN
  • To get credit from financial institutions, you must provide CRN

Remember, the CRN number confirms your business's legal existence, so ensure you display your company CRN and name on your company's official stationery. These include the following

  • All printed letterheads
  • Invoices
  • Brochures
  • Business cards
  • Leaflets
  • On your website
  • Emails

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National Insurance Number (NIN)

Every UK resident is assigned the NIN number, which is also different from TIN, at the age of 16. If you move to the UK to live and work there, and you are over 16, you must apply for the NIN. The number is a mandatory requirement for anyone working in the UK. Like TIN, the NIN number is unique for every person and is active throughout the person's life.

In case you move out of the UK and come back after years, the NIN number remains the same. The NIN consists of the first two letters, followed by six numbers and another one letter. The NIN number is not used for your identification, but you can use it for tax contributions, tax refunds, and deductions purposes. There are government entities that may request you provide NIN, such as:

  • Bank or loan providers
  • National Health Service
  • Pension providers
  • Local council or district where you live

Based on your salary, there is a percentage of your gross salary deducted for the National Insurance Contribution. The contributions are channelled toward your sickness allowance, disability, pension, and unemployment benefits. You will find your NIN number on your tax letters, P60 form, and payslips. In other countries like the USA, the NIN is related to their Social Security number.

Employer Reference Number (ERN)

This number In the UK, it's called ERN, but in most countries, it's referred to as Employer I identification (EIN). When you register your company with the HMRC, you receive an ERN, which identifies you as an employer with workers above the PAYE threshold. However, if your employees don't earn £120 weekly, you don't need to register for PAYE, so don't apply for the ERN. The ERN number is on every correspondence from tax credits and HMRC.

Benefits of UK Tax System Record-Keeping

Keeping accurate records for your company in the UK is paramount. It ensures your company is compliant with HRMC regulations, shielding your business from disputes and penalties. The records include UK TIN numbers like UTR and CRN, which serve as business financial activities.

The comprehensive records help you make company informed decisions by providing insights into profits and the company's cash flow. With the HMRC audit, systematic records will expedite the reviewing process, establishing credibility and transparency.

Conclusion

Although the name TIN is not mostly used in the UK, there are several alternatives of the TINs you can use for your company. They include UTR, CRN, NIN, and ERN. Understanding how each identifier works is crucial for tax compliance and efficient business operations. This also ensures transparency and credibility with HMRC regulations. Do you want help registering a company in the UK while abroad? Incorpuk is here to help you register a company today. Contact us now and enjoy diverse perks.