The Salary Calculator

Your Guide to Keeping Your Side Hustle HMRC Compliant 

by Madaline Dunn

Whether it’s selling vintage shoes or taking on tutoring clients, so-called side hustles have exploded in recent years. In fact, last year, Sage research found that almost half of Brits now have a second income stream.

But, as more people enter the online entrepreneurial pipeline, it’s important to have a clear picture of compliance to keep the taxman from knocking. This week at The Salary Calculator, we’ll explain:

• What’s driving the rise in people selling goods & services online?
• What’s the difference between a side hustle and reselling?
• What are HMRC’s new digital platform reporting requirements?
• What’s happening to the Income Tax Self Assessment (ITSA) reporting threshold?
• Will the allowance threshold increase?
• How will Making Tax Digital affect side hustles?
• Tips and tools to help you stay compliant

What’s driving the rise in side hustles?

Side hustles bounced into the spotlight during the COVID-19 pandemic as the world shifted online and companies cut back on jobs and furloughed staff. And amidst an ongoing cost of living crisis, employment insecurity and a looming recession, the side hustle trend has continued as workers eye new avenues to supplement their income — with varying degrees of success.

According to a 2024 Adobe Express poll of 1,500 Brits, 73% make up to £500 each month from their side hustle, while 20% make over £1,000.

But money isn’t the only driving force behind this rising trend. The research found that 22% of those seeking side hustles are doing so in pursuit of greater flexibility in their work schedule.

The growth of the second-hand market has buoyed growth, too. Nearly 30 million UK adults shopped online for pre-loved items in 2024. Accommodating this demand, 23.8 million Brits turned to online second-hand selling platforms last year, earning an average of £146 a month.

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“There’s been a big increase in the secondary selling of technology”

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The second-hand tech market, in particular, is booming.

“What we’ve seen is that — certainly around smart tech — there’s been a big increase in the secondary selling of technology,” said Scott Butler, executive director of the non-profit group Material Focus. Butler explained that consumer attitudes are changing, with more emphasis placed on affordability over upgrades.

Indeed, in 2023, technology retailer Currys found that one in three Brits were likely to buy second-hand tech, with pre-used electronics exceeding pre-loved clothes in popularity.

But alongside a growing appetite for affordable goods, environmental concerns are also a key driver of this trend. Currys’ research found that 75% of those polled were worried about e-waste — one of the fastest-growing waste streams in the world.

And with the average household hiding around 30 unused electrical items in so-called “drawers of doom,” there’s plenty of money to be made. In fact, Material Focus found that households could cash in between £1,304 and £6,331 by selling unwanted items through reselling platforms.

What’s the difference between a side hustle and reselling?

But with more Brits looking to make a little cash on the side and pursue their passions, it’s important to understand how this work is categorised in the eyes of HMRC — because there are potential tax implications.

And with misleading “side hustle tax” headlines floating around, there’s been a fair amount of confusion.

Luckily, HMRC has released guidance to clarify who needs to pay what and how.

It all boils down to whether or not you’re trading. If you’ve got an old pair of shoes that never quite fit kicking about in the back of your wardrobe and you’re looking to shift them, this isn’t trading. So, you don’t need to register for self-assessment or pay tax (unless an item exceeds £6,000, in which case you’ll need to pay capital gains tax.)

However, regularly making necklaces to sell online, buying vintage items to resell for a higher price, or upcycling items for resale would be considered trading. This also applies to dog-walking, content creation, gardening and similar activities.

If you earn £1,000 or less from these activities, you won’t need to declare or pay tax, but if you exceed this amount, you’ll have to set up as a sole trader and pay tax via Self-Assessment. 

What are HMRC’s new digital platform reporting requirements?

So, what was all the “side hustle tax” hullabaloo, I hear you ask? Well, the confusion came from HMRC’s announcement that from January 2025, online platforms like eBay, Vinted, and Airbnb would have to share data on platform sellers, including income data.

As the Low Incomes Tax Reform Group outlined, this means that if online sellers have failed to pay what they owe, HMRC is “more likely to find out about it,” and platforms may ask more questions when users sign up to ensure that they’re HMRC-aligned.

However, it’s worth noting that if you make fewer than 30 sales of goods in a year and receive less than 2,000 euros (roughly £1,700), a platform won’t report your details.

If a platform fails to follow the new rules, however, there are various financial penalties.

What’s happening to the Income Tax Self Assessment (ITSA) reporting threshold?

One change that will eventually affect sellers more directly is the recently announced plan to increase the Income Tax Self Assessment (ITSA) reporting threshold.

Under the new plans — set to come into effect within this parliament — the Income Tax Self Assessment (ITSA) reporting threshold for trading income will increase from £1,000 to £3,000.

According to HMRC, this will benefit “around 300,000 taxpayers,” with an estimated 90,000 no longer needing to pay tax with no reason to report their trading income to HMRC. Those who do will pay their tax through a new online service — although further details about this service are yet to be announced.

Helen Christopher, chartered accountant and founder of Beansprout, said for many, this is good news, reducing the compliance burden and saving both time and money for those running very small businesses or hobbyist activities.

“From an HMRC perspective, this change frees up resources to focus on larger or higher-risk cases and aligns with their longer-term ambition to simplify tax reporting and roll out more digital services under Making Tax Digital,” added Christopher.

Will the allowance threshold change? 

Although there have been some reports that the allowance threshold is increasing to £3,000, this isn’t the case. However, some argue that it should be.

One joint study from Simply Business and The Federation of Small Businesses recommended that the tax-free trading allowance be doubled to £2,000 and rebranded as the “Side Hustle Allowance” to encourage entrepreneurship in the UK.

More broadly, with the government’s renewed focus on the circular economy, some wonder whether tax policy could be used to encourage progress in this area.

Indeed, Butler highlighted the school of thought that questions whether second-hand goods should be taxed again after a series of taxes have already been paid by producers, retailers and consumers the first time around.

“If you look at it from an environmental perspective and a resource use perspective, that is a potential lever that you could use to promote a more circular economy through making it less burdensome,” commented Butler.

He added that there are also those who advocate for VAT exemptions for repair services to make them more affordable and encourage uptake. This kind of reduced taxation has already been implemented for repairs for different products across Sweden, Austria, and the Netherlands.

How will Making Tax Digital affect online sellers? 

Another incoming tax administration strategy set to affect online sellers and side hustlers is Making Tax Digital.

From April 2026, sole traders and landlords earning £50,000 will be required to keep digital records, use MTD-compatible software and submit quarterly summaries of their income and expenses to HMRC.

By April 2027, this will apply to those with qualifying income above £30,000, and from April 2028, those with £20,000 in qualifying income will enter the compliance bracket.

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“The changes will inevitably feel daunting, overwhelming, and costly for many online sellers and small business owners”

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Christopher described the Making Tax Digital strategy as a “fundamental shift towards a real-time, digital-first tax system, designed to modernise the UK’s tax processes and increase transparency.”

The impact that these changes will have remains to be seen, but some have doubts about their effectiveness.

“Until MTD ITSA fully hits in 2026, I don’t think we can completely foresee how it’s going to go, but I struggle to see how forcing people onto software that struggle with technology makes anything simpler,” commented Beth Jackson, Owner of 2 Sisters Accounting, adding: “I do hope much like when RTI was initially introduced, any penalty schemes will be incredibly lenient while people get to grips with the system.”

Christopher shared a similar sentiment. “While the intention is to streamline processes and improve tax compliance, the changes will inevitably feel daunting, overwhelming, and costly for many online sellers and small business owners — especially those who manage their finances informally or who have only recently started side businesses.”

That said, Christopher added that it also serves as an opportunity to “take greater control of your business finances,” creating more clarity around income and expenses, better forecasting of tax bills throughout the year and fewer year-end surprises.

Tips and tools for keeping compliant 

As with any business, big, small, or just starting out, there are always moving parts, so it’s key to keep on top of things and establish good habits.

“Building strong financial habits now can make the difference between a hobby and a thriving, scalable business in the future,” Christopher explained.

This includes careful record-keeping of income and expenses, whether through accounting apps or spreadsheets.

“The key thing for all businesses is to make sure you are saving your tax as you earn the money to avoid spending HMRC’s money, especially if you’re VAT registered,” added Jackson. “As an online seller, using tools like Linkmybooks to connect with Xero or Freeagent to track your profit levels and make sure you have the appropriate tax saved can make the world of difference in remaining profitable!”

It’s also important to understand different tax terms, for example gross income vs net profit, as well as HMRC’s other rules and regulations.

“Always check your total financial position,” Christopher noted, adding that if you have employment income, pensions, rental income, dividends, or other sources, you may still need to complete a tax return, even if your side business earns under the reporting threshold.

And, when things feel confusing, professional advice can help clear things up.

“Tax rules can be complex, and everyone’s situation is different. Speaking to an accountant or adviser early can save money, reduce stress, and help you get it right from the start,” said Christopher.

Tags: income tax, Jobs, Self Assessment, side hustle

Self Assessment rules refresh

by Madaline Dunn

As the cost of living crisis drags on, nearly 200,000 low-earners have been hit with HMRC penalties for failing to file their tax returns. This high figure is a reminder of the scale of confusion that surrounds Self Assessment.

At The Salary Calculator, we’ll walk you through the key information, to help safeguard you against being hit with tax-related fines. Below, we’ll explore and explain:

• How many penalties were issued and why,
• The rules around Self Assessment,
• HMRC’s response and upcoming changes

HMRC issues hundreds of thousands of penalties to low earners

Recent figures have revealed that between 2018 and 2022, HMRC handed out 660,000 fines to earners who didn’t owe any tax. Eleven million people are required to submit a Self Assessment income tax return to document their other sources of income or past income. Missing the submission deadline on 31 January, means people are automatically hit with a £100 penalty.

For the 2020-21 financial year, 184,000 people were fined for failing to complete a Self Assessment tax form by this deadline. These 184,000 taxpayers were paid less than £12,500 a year, meaning they were not subject to income tax. A total of 58000 of the 184,000 low earners who were fined were successful in their appeal, bringing down the total to 126,000.

Thinktank Tax Policy Associates (TPA) obtained the data following a FOI request, and found that 92,000 people among the lowest-paid 10% of the population were fined by HMRC in 2020-2021, while just 39,000 of the highest-paid 10% received fines.

Speaking about this, Dan Neidle, a tax campaigner and founder of TPA, said: “We believe the law and HMRC practice should change. Nobody filing late should be required to pay a penalty that exceeds the tax they owe.”

“People are falling into debt and, in one case we’re aware of, becoming homeless as a result of HMRC penalties. Advisers working with low-income taxpayers see this kind of situation all the time, and filing appeals for late-payment penalties often makes up a significant amount of their work.”

What are the rules and penalty charges?

So, what are the rules around Self Assessment that you need to adhere to in order to avoid being hit with penalties?

If, in the last tax year, any of the following applied, you must file a tax return:

• You were self-employed as a ‘sole trader’ and earned over £1,000 (prior to deducting anything you can claim tax relief on)
• You are a partner in a partnership business;
• You are a minister of religion;
• You are a trustee or the executor of an estate.

There are some other circumstances where you might also need to file a Self Assessment Tax Return. You can find out more about that here.

It is important that you register with HMRC for Self Assessment by 5 October, following the end of the tax year in which the income or gains first arose. If you fail to do this, you may be subject to penalties. This deadline is extended to 31 October for paper returns.

Other key dates include 31 January, which is the deadline for both submitting your online tax return and paying the tax that you owe.

The second payment on account is due 31 July 2023, and by January, if you still owe HMRC tax following your payment on account, you’ll need to pay a balancing payment.

If you miss the submission deadline, you will be hit with an automatic £100 automatic late-filing penalty.

If you fail to pay this for three months, the penalty can begin to increase by £10 each day, up to a maximum of £900 for 90 days.

At six months, a flat £300 additional penalty can be applied, or 5% of the tax due, whichever is higher, and if after 12 months you’ve not paid, you can incur another £300 penalty.

What was HMRC’s response and are there incoming changes?

Following a wave of criticism, an HMRC spokesperson released the following statement: “The government has recognised that taxpayers who occasionally miss the filing deadline should not face financial penalties, and has already announced reform of the system.”

So what reforms are set to be introduced? From 2026 onwards, the current standard £100 fine for late filing of Self Assessment tax returns will change to a points-based system.

According to HMRC, this will mean that those who make an occasional mistake won’t be hit with big fines straight away. Instead, those who miss the filing deadlines will be given a point, and a financial penalty will only be charged to them when a set number of points is reached.

The Government policy paper outlines that taxpayers will receive a point every time they miss a submission deadline, and HMRC will notify them when they receive a point.

When they reach a particular threshold of points, determined by how often they’re required to submit, a financial penalty of £200 will be charged, and they will be notified.

These thresholds are as follows:

• Annual – 2 points
• Quarterly (including MTD for ITSA) – 4 points
• Monthly – 5 points

As per these new rules, another £200 penalty will be issued for every subsequent late submission, but the taxpayer’s points total will not increase.

However, despite calls to reform the system further, the spokesperson said deadlines for returns are “necessary for the efficient functioning of the tax system,” adding: “We strongly encourage anyone who does not need to file a return to tell HMRC.”

“Our aim is to support all taxpayers, regardless of income, to get their tax right, and details of what to do if a person no longer needs to file a return are included in reminder letters every year.”

There are also further upcoming changes to Self Assessment, too. From April 2026, those who file Self Assessment reports each year and are self-employed, with annual gross income of over £50,000, will have to comply with the government’s new Making Tax Digital (MTD) for Income Tax rules. As per these rules, these taxpayers will have to keep records in a digital format, using specific accounting software packages or apps or maintain spreadsheets for recording business transactions.

Further, instead of a yearly report, people will be required to submit quarterly updates to HMRC. The deadlines for this will be as follows:

• 6 April to 5 July
• 6 July to 5 October
• 6 October to 5 January
• 6 January to 5 April

In addition to the quarterly returns, this will conclude with submitting an ‘end-of-period statement’ to confirm the final taxable profit for the accounting period.

From April 2027, those who file a Self Assessment tax return and are self employed, with an annual gross income of between £30,000 and £50,000 will be required to do the same.

Tags: HMRC, income tax, making tax digital, Self Assessment

Making Tax Digital for Income Tax – Should you start to prepare now?

by Admin

[Sponsored post by GoSimpleTax]

All VAT-registered businesses in the UK must now meet new reporting requirements introduced as a consequence of Making Tax Digital. If you don’t run a VAT-registered business, Making Tax Digital won’t have affected you so far. You may not have even heard of Making Tax Digital.

However, if you report income and pay tax via Self Assessment, come April 2024, Making Tax Digital is likely to impact you. And the changes that Making Tax Digital for Income Tax Self Assessment (MTD for ITSA) will bring are significant, so finding out more about MTD for ITSA now is recommended, so you’re better prepared and avoid having to pay a non-compliance penalty.

In this guide you can:

• Find out what Making Tax Digital for Income Tax Self Assessment is.
• Discover whether you’ll be affected by MTD for ITSA.
• Learn how MTD for ITSA will change the reporting of taxable income.

What is Making Tax Digital?

Making Tax Digital is an important government digital initiative that is already transforming the UK tax system. Its introduction got underway in 2019 and it will continue in stages until complete. The VAT reporting system has already been digitised and Income Tax Self Assessment is next, before Corporation Tax gets the MTD treatment. Full introduction of MTD across the entire UK tax system remains some years off.

Why is Making Tax Digital being introduced? The government says it wants to make it easier for people and businesses to more easily and efficiently manage their tax responsibilities, while it hopes MTD will prevent basic tax reporting errors that cost the UK many billions a year in lost tax revenue.

Introduction of MTD for ITSA was to start on 6 April 2023, but it’s been delayed for a year until 6 April 2024 in response to COVID-19 and stakeholder groups asking for more time so that businesses and individual taxpayers could better prepare themselves for MTD for ITSA.

Put in very basic terms, Making Tax Digital for Income Tax is simply a new way of using digital solutions to report income and expenses to HMRC every quarter rather than once a year.

Who will be affected by Making Tax Digital for ITSA?

• If you’re a self-employed sole trader or landlord who is registered for Income Tax Self Assessment and you have a gross income of more than £10,000, you’ll need to comply with Making Tax Digital for Income Tax requirements from 6 April 2024.
• Members of ordinary business partnerships who earn more than £10,000 a year must sign up for MTD for ITSA by 6 April 2025.
• You can apply for a MTD for ITSA exemption if it’s not practical for you to use software to keep digital records or submit them to HMRC digitally, for example, because of your age, disability, location (ie poor broadband connection) or another justifiable reason. MTD exemption can also be granted on religious grounds. You’ll need to explain your reasons to HMRC and an alternative solution will be sought.

How will reporting change under MTD for ITSA?

Sole traders, landlords and other Self Assessment taxpayers with taxable income won’t need to submit a Self Assessment tax return each year (unless they choose to report other income from shares, interest, etc, via Self Assessment, although HMRC would prefer you to report all taxable income via MTD for ITSA).

MTD for ITSA requires you to maintain digital records of your taxable income and expenses/costs, update them regularly and send summary figures to HMRC digitally within a month of the end of every quarter.

If you’ll need to report via MTD for ITSA you must use:

• MTD for ITSA-compatible third-party software or
• “bridging software” that allows you to send the necessary information digitally in the right format to HMRC from non-MTD-compatible software, spreadsheets, etc.

At the end of the tax year (5 April), you must submit your “end of period statement” (EOPS) and a final declaration (MTD version of the current self assessment tax return), confirming the accuracy of the figures you’ve submitted, with any accounting adjustments made and any additional earnings reported. HMRC will then send you your tax bill, which you must pay before 31 January in the following tax year. Unjustifiable late submissions or payments will continue to result in penalties.

Should you sign up for MTD for ITSA now?

For some time, some businesses, landlords and accountants have been taking part in a live Making Tax Digital for Income Tax Self Assessment pilot scheme. 

You don’t have to sign up for MTD for ITSA. However, you can sign up voluntarily now for MTD for ITSA and start using the service if you’re:

• a UK resident
• registered for Self Assessment and your returns and payments are up to date a sole trader with income from one business or a landlord who rents out UK property.
• You can’t currently sign up if you also need to report income from other sources (eg share dividends).

Need to know! At this stage, it’s probably best to delay signing up for MTD for ITSA, until at least April 2023.The new system is very much in its infancy, with HMRC taking steps to refine it to iron out any issues and provide a better user experience.

Conclusion

Preparation is key, starting to use digital software now to record income and expenses on a regular basis will get you into the routine before MTD for ITSA comes into effect.

As April 2023 approaches you will then be in a better place to decide what software or bridging software will be best for your circumstance/business.

About GoSimpleTax

Income, Expenses and tax submission all in one.

GoSimpleTax will provide you with tips that could save you money on allowances and expenses you might have missed.

The software submits directly to HMRC and is the solution for the self-employed, sole traders and anyone with income outside of PAYE to file their self-assessment giving hints and tips on savings along the way.

GoSimpleTax does all the calculations for you saving you ££’s on accountancy fees. Available on desktop or mobile application.

Tags: income tax, ITSA, making tax digital, Self Assessment, self employed, self employment, VAT

Changes to Self Assessment this year

by Madaline Dunn

The Self Assessment deadline is just around the corner, and by 31st January self-employed individuals must file and submit their Self Assessment tax return and pay any tax owed to HMRC.

While there’s still time to submit, it’s always best to complete your tax return as soon as possible, so you don’t risk making any silly mistakes and avoid getting hit with late penalties. Also, this year, there are some changes to Self Assessment to look out for.

At The Salary Calculator, we’ll walk you through:

• How to report Capital Gains Tax
• How to report Covid support measures
• How to access Self-serve Time to Pay
• What to watch out for

Capital Gains Tax reporting

Capital Gains Tax applies to those who have sold or ‘disposed of’ an asset, for example, a house that’s increased in value. From 6 April 2020 to 26 October 2021, this had to be reported and paid for within 30 days of completion. However, there is an update here, and for property disposals made on or after 27 October 2021, the “report and pay” deadline has been extended to 60 days.

If you’re registered for Self Assessment, it’s important to remember that you must report this on your tax return in the capital gains pages. That said, there are exemptions. If your only disposal is of your home and private residence relief applies, you don’t have to report this on the capital gains pages.

Reporting any Covid support measures

HMRC recently issued a warning to self-employed individuals that they must declare any COVID-19 grants they received on their tax return for the year 2020-2021. According to HMRC, over 2.7 million people claimed at least one Self-Employment Income Support Scheme (SEISS) payment up to 5 April 2021, and if you did indeed receive SEISS, this must be recorded.

Likewise, other Covid support measures that must be included in one’s Self Assessment are:

• The Coronavirus Job Retention Scheme (otherwise known as the furlough scheme)
• Self-isolation payments
• Local authority grants
• Eat Out to Help Out scheme

That said, it’s also important to note that if you received a £500 one-off payment as a working household receiving Tax Credits, this does not need to be reported in your Self Assessment.

Self-serve Time to Pay

For many, the last couple of years has been a struggle financially. In 2020, according to a study by LSE, over a third (34%) of self-employed workers struggled to pay for basic expenses such as rent and mortgage payments. So, if you’re feeling the pinch this year, you’re not alone. That said, for those feeling anxious and overwhelmed at their tax bill this year, there is help out there if you’re worried you can’t pay your tax bill in full. You can now spread your tax bill over a period of time online via HMRC’s self serve Time to Pay system.

The Time to Pay system is available to eligible to Self Assessment taxpayers who:

• Don’t have other outstanding tax returns or any other tax debts
• Have debts between £32 and £30,000
• The plan made must be set up no later than 60 days after the tax payment’s due date (30 March 2021)

When setting up your payment plan online, you’ll need to be equipped with:

• Your unique Tax Reference number
• Your VAT registration number, if applicable
• Your Bank account details
• Details relating to any previous payments you’ve missed

When arranging your payment plan, HMRC will ask you some questions about your financial circumstances to gauge what will be affordable for you. Questions may include how much you’re earning, what an affordable payment scheme would look like for you, what your outgoings are, whether you have any savings or investments.

What to watch out for

HMRC has issued a warning around ​​copycat websites and phishing scams ahead of the Self Assessment deadline. As the deadline approaches, scammers are more likely to target taxpayers who are in a rush to submit their tax returns and have their guard down. According to HMRC, 800,000 tax-related scams have been reported in the last 12 months alone.

Myrtle Lloyd, HMRC’s Director General for Customer Services, has subsequently published advice on what to look out for if you think you might be being approached by a potential fraudster. Lloyd says to be wary of anyone who contacts you claiming to be from HMRC and rushes you. Likewise, anyone “threatening arrest” will not be calling from HMRC. Lloyd outlined: “If you are in any doubt whether the email, phone call or text is genuine, you can check the ‘HMRC scams’ advice on GOV.UK and find out how to report them to us.”

Tags: coronavirus, Employed and Self Employed, Self Assessment, self employed, The Salary Calculator

All you need to know about UTR numbers

by Madaline Dunn

[Sponsored Post]

Self Assessment: It’s coming around to that time of year again. While some may have already completed and sent off their annual tax return, there are also many who have not! In 2020, 700,000 taxpayers waited until the last day to file their return, and a staggering 26,562 taxpayers left it to the last hour.

So, if you haven’t filed your tax return yet, and perhaps are doing so for the first time, you may have a few questions, including; what on earth is a UTR number?

Don’t worry; there’s still plenty of time to file your tax return before 31st January and make sure you’re not faced with late payment fines. At The Salary Calculator, in this article, we’ll get you to speed and explain:

• What a UTR number is
• When you need a UTR number
• How to register for a UTR number if you don’t have one
• What will happen after registering for a UTR number
• Where you can find your UTR number

What is a UTR number?

UTR stands for Unique Taxpayer Reference, and this is a 10-digit number that is unique for each person or business. Just as with a National Insurance (NI) number, once you have one, you have it for life. So, even if you’ve been out of business for a while, you’ll never lose your UTR number, your number will just become dormant.

A UTR number is issued by HMRC and sometimes includes the letter K at the end of it.

When do you need to provide a UTR number?

A UTR number is required if you:

• Need to create an online account with HMRC
• Are self-employed or have a limited company
• Owe tax on savings, capital gains, and dividends
• Must register individual taxes
• Work within the Construction Industry Scheme (CIS)

How do you register for a UTR number?

If you don’t already have a UTR number and need one, the most simple and fastest way to get one is to apply online on HMRC’s website.

Of course, not everyone’s preferred method involves a computer or laptop, so rest assured, you can also apply to get your UTR number via letter too. That said, this way is, unfortunately, much slower and will involve postage fees as well.

When it comes to registering for a UTR number, this must be done within the first three months of opening your business, regardless of your occupation.

In order to register, you must also submit a few different pieces of information. This information includes:

• Your name, DOB and address
• Your contact information (preferred number and email address)
• Your NI number
• When you commenced self-employment
• The type of business you have
• Basic business information (address, number, name)

What happens after registering for a UTR number?

Once you’ve applied for your UTR number, there are a few things to bear in mind. First of all, it can take up to ten days for your UTR number to arrive, sometimes longer.

In addition to this, once you’ve heard back from HMRC and received your activation code, don’t wait around too long before using it, as it expires at 28 days.

Where can you find your UTR number?

Your UTR number can be found in a number of places, including:

• Statements of accounts
• Your Self Assessment Tax Return
• HMRC payment reminders
• HMRC Self Assessment notices

If you think you’ve either misplaced or lost your UTR number, don’t panic. Contacting HMRC is your best bet. When reaching out to HMRC, you should have your NI number to hand, as you will be asked for it when you call.

HMRC can be contacted via:

• 0300 200 3310 (UK)
• +44 161 931 9070 (Outside UK)
• 0300 200 3319 (Textphone)

Final thoughts

Navigating the world of tax returns can be anxiety-inducing for some; that said, there are several sites out there that can lend a helping hand. HMRC are always available if you need guidance on your tax return and can answer any burning questions.

Go Simple Tax also helps to make things simple and straightforward. The software provides guidance, as well as hints and tips on how to save money.

Tags: Economy, Employed and Self Employed, Self Assessment, self employed, The Salary Calculator, UTR number