UTR from Bangladesh: Complete Guide

UTR from Bangladesh is a requirement that catches many entrepreneurs off guard after they form a UK Ltd company. Unique Taxpayer Reference (UTR) is the 10-digit number that HM Revenue & Customs (HMRC) gives to all UK limited companies and all individuals registering for Self Assessment. The reason you need it is that without a UTR, you won’t be able to submit your tax return, open some types of UK business bank accounts, or comply with all requirements for your company. The great thing is that living in Bangladesh does not prevent you from obtaining a UTR because HMRC provides UTRs to foreign owners of UK companies and their non-resident directors on a regular basis.

Table of Contents

1. UTR Number Definition
2. Difference Between a Company UTR Number and Personal UTR Number
3. The Need for UTR Number for a Founder from Bangladesh
4. UTR Number for Non-UK Residents
5. The Process for Assigning Company UTR Post UK Limited Registration
6. Applying for Personal UTR for Non-UK Resident Director
7. The Documents Required and Other Details
8. Time Duration for Getting a UTR from Bangladesh
9. Cost Involved for Getting UTR
10. Steps to Take if You Haven’t Received your UTR
11. How to Check Your UTR When You Receive One
12. Common Errors Committed by a Founder from Bangladesh While Applying for UTR Number
13. Uses of UTR Number Once You Get Your UTR
14. Helping Hand of Finset Formation with UTR
15. FAQ About UTR Number
16. Concluding Remarks

UTR Number Definition

UTR stands for A Unique Taxpayer Reference, which is a 10-digit code assigned by HMRC to help keep records of tax accounts and link payments to the right taxpayer. The UK limited company is provided with its own UTR, while an individual who is registered for the Self-Assessment process, such as company directors, gets his/her personal UTR too. The UTR is used in all tax-related correspondence, which makes it one of the most often requested codes once the UK company operates.

The UTR is a distinctive type of identification code compared to others you can encounter when managing the UK company:

Number	What It Identifies	Issued By
UTR	Tax account (company or individual)	HMRC
Company Registration Number (CRN)	Legal existence of the company	Companies House
VAT Number	VAT-registered status	HMRC
National Insurance Number	Individual’s social security record	DWP/HMRC

When an entrepreneur from Bangladesh runs a UK Ltd, then for him, the UTR and CRN will be two main numbers and they tend to be quite confusing for him since they are issued at the same time.

Difference Between a Company UTR Number and Personal UTR Number

First time entrepreneurs usually think that there is only one UTR for a company, however, it is not true since there are two different numbers:

Company UTR: This is the Corporation Tax UTR and every UK registered limited company has this number which is automatically assigned by HMRC soon after the company incorporation at Companies House. You don’t have to apply for this separately.

Personal UTR: This is for a person and not for a company. When the director also needs to file a personal tax return, then he needs his own personal UTR. This will be needed when he is deriving income personally from the business and has some income source in the UK besides the corporation.

The Bangladeshi director usually needs two types of UTR: one for corporation tax filing for the company, and also a personal one depending on how he is deriving income from the business.

The Need for UTR Number for a Founder from Bangladesh

When you are the owner/director of a UK Ltd company from Bangladesh, your UTR will be crucial for various reasons:

• Submitting your CT600 Corporation Tax Return form: It would be impossible for you to file this with HMRC without a company UTR.
• Submitting your self-assessment if there are any personal UK tax liabilities associated with being a company director or shareholder.
• Opening business bank accounts in the UK: A growing number of banks require your UTR as part of their Know Your Business (KYB) process.
• Applying for VAT registration: HMRC connects your VAT account with your company UTR.
• Reassuring customers and business partners about the legitimacy of your company: The presence of a UTR indicates that your company is fully registered with HMRC rather than with Companies House only.

Not taking this step does not simply cause delays in filing the necessary forms but makes it impossible for you to file them properly at all.

UTR Number for Non-UK Residents

Yes. UTR numbers are issued to non-residents in the UK, including company directors or shareholders from Bangladesh. Your non-residency status does not exclude you from receiving a UTR number. Non-resident directors having income from UK sources or non-resident landlords having rental income in the UK register for and receive UTR numbers through HMRC processes without any problem; there are even schemes for this specific type of income, such as the Non-Resident Landlord Scheme.

For a non-resident person, the only distinction from others is that he or she applies for the UTR differently than the UK resident persons and receives correspondence from HMRC differently because there would be no UK address.

The Process for Assigning Company UTR Post UK Limited Registration

If your UK Ltd company is duly incorporated through Companies House, HMRC registers the company automatically for corporation tax, and the company UTR number is also provided automatically. There is no need for a separate application for this, and the UTR number is sent to the address registered with Companies House by post within a few weeks after the incorporation.

This is one of the reasons why the selection of the registered office address is important for founders of companies in Bangladesh. As you are not able to receive the UK mail in Bangladesh directly, the registered office should forward or scan the letter for you to make sure that you receive your UTR and other important deadlines.

Applying for Personal UTR for Non-UK Resident Director

If you need a Personal UTR in addition to your Company’s UTR, you can use the following steps to get the Personal UTR:

Step 1: Determine if you actually need one. Decide whether you really need the Personal UTR. You need the Personal UTR if you need to submit a Self Assessment return, e.g., because you have UK income such as dividends or director’s salary.

Step 2: Register with HMRC. Register with HMRC. You usually register with HMRC through its online registration.”

Step 3: Provide your details. Enter your personal information. HMRC requires your full name, date of birth, Bangladeshi address, and income information. In case of not having a UK National Insurance number, other supporting documents for your identity verification are required.

Step 4: Wait for HMRC to process your application Wait while HMRC processes your application. Your UTR is prepared by HMRC after processing your application.

Step 5: You get your UTR through the mail. HMRC sends your UTR to the address provided. This may take more time for applicants residing abroad as opposed to UK residents.

Step 6: Create your own personal tax account. Using your UTR, you can register for HMRC’s online service where you can file your returns while residing in Bangladesh.

The Documents Required and Other Details

Prior to application, prepare the below documents to avoid any delays:

• Full legal name, matching your passport
• Date of birth
• Address of residence in Bangladesh
• Name and registration number of the company in the UK if applying as the director
• Details of UK-source income, if applicable
• Copy of passport or any identification document since UK National Insurance number would not be available

By having all of the above in hand prior to application, the risk of HMRC asking for further information is minimized.

Time Duration for Getting a UTR from Bangladesh

UTR for the company UTR is usually sent out by HMRC within weeks of your UK Ltd incorporation, automatically sent to your registered office address.

UTR for the personal UTR application, which is submitted through the online application process, usually gets processed by HMRC and is posted within 10 to 15 days, provided that you live in the UK. As in your case, you are applying from Bangladesh, hence the time will be slightly longer since it usually takes more time to deliver the document abroad than domestically in the UK, and the estimated time could go up to around three weeks.

In case you have not received any document after a while, it would be better to contact HMRC to find out the reason behind it.

Cost Involved for Getting UTR

No. HMRC does not charge a fee for issuing the UTR number, either personal or company UTR. When you come across a service charging money for issuing your UTR number, then the fee will be charged on the effort taken by the service providers in the process of applying for the UTR number. The UTR itself is free of charge.

Steps to Take if You Haven’t Received your UTR

When too much time has elapsed without your receipt of the UTR:

1. Verify whether your registered office address is correct and active.
2. Verify if the post coming to your registered office address is monitored and forwarded to you since this is a frequent area where founders from Bangladesh tend to fail.
3. Contact the Self Assessment helpline of HMRC.
4. When your registered agent/firm handles your mail, contact them and enquire whether HMRC has sent anything to you.

It will cause delay and confuse the HMRC system to send another application while waiting for a response from the initial one.

How to Check Your UTR When You Receive One

It is not unusual that many founders from Bangladesh make another application without knowing that they already have a UTR number. Before sending an application, check:

• Any correspondence from HMRC, such as CT41(G), which will be sent to you once your company has been registered
• Past Self Assessment tax returns
• Your HMRC online personal tax account, accessible through Government Gateway
• The HMRC mobile app, where the UTR typically appears on the account summary screen

A UTR number is on virtually all HMRC correspondence pieces, so it might be easier to review old correspondences than contact HMRC.

Common Errors Committed by a Founder from Bangladesh While Applying for UTR Number

1. Not registering the updated office or mail address where the UTR letter can be sent.
2. The misunderstanding between the UTR number of company and person resulting in incomplete tax filings.
3. Application for the second UTR rather than checking old mailings first.
4. The belief that UTR must be obtained on the day of incorporation whereas in reality it comes automatically after incorporation of the company.
5. Delay in applying for the personal UTR until a deadline approaches, thus, leaving no room for international mail delivery delays.
6. Uncareful handling of the UTR number. Due to the fact that it is directly connected to tax details, the UTR should be handled like other business identification numbers.

Uses of UTR Number Once You Get Your UTR

Once you receive your UTR, it is a normal part of your compliance processes:

• When you submit your CT600 form (Corporation Tax Return)
• When you complete your Self Assessment, if you have any personal compliance responsibilities
• Since your UTR is linked to your VAT account by HMRC, when you register for VAT
• When you open your UK business banking accounts, some of which require your UTR at account opening stage
• When you correspond with HMRC on any tax-related issue because your UTR is the identification used in all correspondence

Make sure that your UTR is stored along with your registration number and other important details.

Helping Hand of Finset Formation with UTR

Obtaining a UTR for Bangladesh may seem to be a complicated process — an official address that will forward your mail, right registration data, and proper time management in view of possible delays in the postal delivery from other countries. Finset Formation, located in Savar, Dhaka, has assisted many entrepreneurs from Bangladesh in UK Ltd formation and subsequent registration.

Here is how Finset Formation will assist you in obtaining UTR:

• UK Ltd company formation in order to have UTR registration triggered from the first day of incorporation.
• UK registered office address with mail scanning and forwarding so HMRC letters and especially UTR are always delivered to you on time.
• UK personal UTR registration guidance which will help you understand whether you require one and will assist in registration.
• Compliance services for Companies House and HMRC including PSC registration and reminders on filing.
• UK business banking guidance which will help you link your UTR with your accounts at WorldFirst, Wise, Tide and other providers.
• Bangla language service which explains all requirements of HMRC so you can easily understand any letters from HMRC.

HMRC Bangla language service, which will help you understand the requirements of HMRC in detail.

FAQ About UTR Number

Concluding Remarks

Obtaining a UTR from Bangladesh is a routine process backed up by ample evidence; not an obstacle specific only to foreign entrepreneurs. Your UK Ltd company will have received its UTR number automatically once incorporated; meanwhile, as a foreign director, you will be able to apply for your own UTR in case you need it. The main problem that you may face will be a purely practical one – getting HMRC letters via a proper company’s registered address.

As soon as your UTR is obtained, it will become a foundation of your tax compliance in UK – from submitting your Corporation Tax Return to opening a bank account for your company. If you need this whole procedure to be performed properly from the very beginning, Finset Formation is here to assist you.