UTR - self employment help please

baloo

My son has been out of work for a while. He has not been claiming any benefits.
He has finally got a job but has been asked to provide a UTR. So I can only presume that this means he will be self employed?
When I looked at the HMRC Gov site I got a bit confused! Does this mean that he will have to register as setting up his own business??? Can anyone help a numpty like me sort this out please
:wall:

Moonmoney

Hi My understanding is that the UTR is a unique reference number allocated to him when he registers to complete his own tax return (ie for when he receives self-employed income, rental income etc). I would not expect to give this to anyone as it is a unique reference (I think) between him and the taxman.

He needs to find out whether his new job is on an employed or self-employed basis and then you can work out the next step.

HTH

lijaloo

He will receive his UTR once he has registered as self-employed. If he working as a sub-contractor he will need to give the number to the contractor (his "employer") so that he can confirm his identity.

morgani

As others have stated this will be on the basis of being self employed. It appears this new 'job' will be that.

UTR numbers are often given to 'employers' to confirm identity and that the individual is actually registered as self employed and therefore should be declaring the income earned.

There is plenty of info online and it is something that can be done yourself but many also use an accountant.

Moonmoney

lijaloo & morgani just wanted to say thank you for your explanations of why employers need the UTR! I knew the UTR was used for between user and HMRC but not that it is also used between self-employed and employer :T