Taxpayer Identification Number required by bank

JosephK

Not a problem more a query out of curiosity. Mrs K was recently asked by bank where she has one of her savings accounts to provide details of tax residency and taxpayer identification number (TIN). Although UK does not issue TIN as such, understand NI number suffices.

I've never been asked for such details by same bank, where I also have accounts, nor have either of us been asked by any other banks or financial institutions where we have other savings accounts. Usual given reasons for asking such information seem to be overseas residency or overseas accounts, neither of which apply to either of us.

No problem in giving info if really required but I was just wondering why they may be asking. Just a valid random request or a hint of tick-box bureaucracy? And if one is asking why aren't the others?

Anyone else had such a request?

Jami74

I did after I opened a current account with another bank. I remember it as being just a tick box form and space for NI. I ignored the first letter but responded to the second. I have no savings or investments or any sort of overseas connection.

pinkdalek

Tick box bureaucracy in general. Your bank won't have upto date information about you and need to know what countries you may have resided in over the past few years. If for example you had lived in the USA and you were allocated a TIN number when there you are required to give it as under US law you might have to pay tax. It's crazy but it's the way it is.

born_again

pinkdalek wrote: »

It's crazy but it's the way it is.

Yep banks are now expected to work for the taxman worldwide to ensure no tax evasion. If they find something out and do not advise them, then its a fine....

colsten

NI number is sufficient but every UK taxpayer also has a TIN, known as the UTR (Unique Taxpayer Reference). Lots of people will have connections/transactions that require a TIN. I don't know the reason why the NI Number wasn't considered sufficient but it doesn't bother me that I have an NI number and a UTR. Just like it doesn't bother me that I also have a passport number and a driving licence number and an NHS number.

If you need your TIN, you will either be given it (e.g. on your Tax Return if you have to produce one), or you can ask HMRC for it.

colsten

pinkdalek wrote: »

Tick box bureaucracy in general. Your bank won't have upto date information about you and need to know what countries you may have resided in over the past few years. If for example you had lived in the USA and you were allocated a TIN number when there you are required to give it as under US law you might have to pay tax. It's crazy but it's the way it is.

It's not crazy at all that you have a unique identifier in all countries that you have paid / have to pay tax in.

colsten

born_again wrote: »

Yep banks are now expected to work for the taxman worldwide to ensure no tax evasion. If they find something out and do not advise them, then its a fine....

That is true. Plus, there is a lot of personal financial data exchange going on for other good reasons, such as national security, money laundering and drug dealing.

MDMD

colsten wrote: »

NI number is sufficient but every UK taxpayer also has a TIN, known as the UTR (Unique Taxpayer Reference).

Not true. HMRC have to issue the UTR manually as it has to be linked to a Self Assessment record, which is separate from the PAYE/NI system. Unless you request one they won’t set up one for you by default.

You can usually only get a UTR number once you confirm to HMRC the reason that a Tax Return is required to be submitted. Once issued it stays with you although in certain cases (duplicate record set up in error, bankruptcy etc) people can end up with two.

colsten

MDMD wrote: »

Not true.

I take it you mean that it's incorrect that every UK taxpayer also has a TIN, like I claimed. If so , I acknowledge that you are right and I got that bit wrong. There's nothing else wrong with what I said in that post though, is there?

An explanation from Which?: https://www.which.co.uk/money/tax/income-tax/self-assessment-tax-return/what-is-a-utr-number-ajzuf3j3x3z2

MDMD

colsten wrote: »

I take it you mean that it's incorrect that every UK taxpayer also has a TIN, like I claimed. If so , I acknowledge that you are right and I got that bit wrong. There's nothing else wrong with what I said in that post though, is there?

An explanation from Which?: https://www.which.co.uk/money/tax/income-tax/self-assessment-tax-return/what-is-a-utr-number-ajzuf3j3x3z2

Yes, the rest is correct, apologies, that was just lazy use of the quote function by me. I’ve updated the post.

I believe the reason the NINO wasn’t used for SA might be to give them the option of issuing a second number if need be, but also because some vehicles like partnerships don’t have a NINO but as the partners need to be linked to it, it was probably more straightforward to have them all using a number with the same format.

Chino

colsten wrote: »

There's nothing else wrong with what I said in that post though, is there?

Well, based on the Which link you posted, your claim that:

colsten wrote: »

If you need your TIN, ... you can ask HMRC for it.

seems to be fallacious because it appears that HMRC only issues UTRs to those having to complete a self assessment tax return and not simply to anyone wanting what you refer to as a "TIN".