The authentication code is a 6 digit alphanumeric code issued by Companies House to each company when a company is incorporated. The code is used to authorise information filed online and is the equivalent of a company officer’s signature.

Your accountant will need the authentication code to be able to file your company accounts online.

With the code Your accountant can update information on your behalf to Companies House, for example change of registered office address.

If you formed your company directly with Companies House, the authentication will be sent by post to your registered office address within a few days after incorporation.
If you have lost your code or did not receive it, you can request it to be re-sent to your registered office address. This is something Your accountant can do on your behalf if needed.
A temporary service in response to the coronavirus (COVID-19) pandemic has made it possible to request the code to be sent to your home address.
Send to a registered office address
Request your code now. It’s sent by post to your company’s registered office and can take up to 5 days to arrive.
Watch video to see how easy it is to register and order your code.

The UTR is a 10-digit number and stands for Unique Tax Reference.

A Company needs a Company UTR to file their Annual Accounts and Tax return with HMRC.

An Individual needs a Personal UTR (unique taxpayer’s reference) to file an Income Tax Self-assessment to HMRC and pay taxes.

If you only had PAYE salary in the past where tax was deducted by your employer, you will not have a UTR and will need to register with HMRC to obtain one.

You will need to do personal tax return if you have become self-employed or have other sources of income not taxed at sourced.

UTR numbers have 10 digits, and sometimes there’s a letter ‘K’ at the end.  Your UTR number will always be the same for you just like your National Insurance number.

You’ll be issued with a UTR – which is also referred to as just a tax reference number – when you register to complete a tax self-assessment, or form a limited company.

HMRC will send the UTR by post.

If you have completed a tax return in the past you will find your number on correspondence from HMRC, often on the top right of letters issued regarding your UK tax.

Please note: If you form a company, HMRC will normally send a letter saying that they now expect you to file a self-assessment.

If they do not, you may need to let them know by registering for self-assessment. Your accountant can help you with this process.

If you cannot find your UTR

Call the Self Assessment helpline to request your UTR if you cannot find any documents from HMRC.

If you have a limited company, you can request your Corporation Tax UTR online. HMRC will send it to the business address that’s registered with Companies House.

Agent access is a service where Your accountant can get access to your tax information held by HMRC. It is not the same as your personal government gateway account, but it is a similar service.

By granting Your accountant access to relevant services, they can access your records if there are any queries, and they can also contact HMRC on your behalf.

The request to HMRC for agent is done by your accountant. You only need to grant access by providing the one-time code that will be sent to your registered address. Give it to your accountant before the expiry date, otherwise they must apply again.

It is a normal part of our onboarding process at 2E to apply for agent access for relevant services.

For Corporation tax services and Self-assessment services, the UTR is required for the application, so no application can be made until we receive it from you.

Please note: Each service is separate, and if you require all services available online (VAT, Corporation Tax, PAYE and Self-assessment), your accountant will need to be granted access for each individual service. This means you will get up to 4 different letters from HMRC with authentication codes.

‘Payments on account’ are advance payments towards your tax bill (including Class 4 National Insurance if you’re self-employed).

You have to make 2 payments on account every year unless:

• your last Self Assessment tax bill was less than £1,000
• you’ve already paid more than 80% of all the tax you owe, for example through your tax code or because your bank has already deducted interest on your savings

Each payment is half your previous year’s tax bill. Payments are usually due by midnight on 31 January and 31 July.

If you still have tax to pay after you’ve made your payments on account, you must make a ‘balancing payment’ by midnight on 31 January next year.

Example Your bill for the 2019 to 2020 tax year is £3,000. You made 2 payments on account last year of £900 each (£1,800 in total).

The total tax to pay by midnight on 31 January 2021 is £2,700. This includes:

• your ‘balancing payment’ of £1,200 for the 2019 to 2020 tax year (£3,000 minus £1,800)
• the first payment on account of £1,500 (half your 2019 to 2020 tax bill) towards your 2020 to 2021 tax bill

You then make a second payment on account of £1,500 on 31 July 2021.

If your tax bill for the 2020 to 2021 tax year is more than £3,000 (the total of your 2 payments on account), you’ll need to make a ‘balancing payment’ by 31 January 2022.

Payments on account do not include anything you owe for capital gains or student loans (if you’re self-employed) – you’ll pay those in your ‘balancing payment’.

You’ll pay a late filing penalty of £100 when you miss the deadline.

If you are late longer than 3 months; then another £10 for every day its late, up to a maximum of £900 (90 days).

6 months late = additional £300 fine or 5% of the tax owing, (which ever is greater).

12 months late = another £300 fine or 5% of the tax owing, (which ever is greater).

[Total £1,600]

It’s also possible to estimate your penalty here:

https://www.gov.uk/estimate-self-assessment-penalties

https://www.gov.uk/hmrc-internal-manuals/self-assessment-legal-framework/salf308a

The first late payment penalty is 5% of any tax unpaid after 30 days.

The second late payment penalty is 5% of any tax unpaid five months after the penalty date
Paragraph 3(3) Schedule 56

Any tax that remains unpaid after the end of the period of 5 months beginning with the penalty date is again subject to a late payment penalty equal to 5% of the unpaid tax.

The third late payment penalty is 5% of any tax unpaid 11 months after the penalty date
Paragraph 3(4) Schedule 56

Any tax that remains unpaid after the end of the period of 11 months beginning with the penalty date is again subject to a late payment penalty equal to 5% of the unpaid tax.

If you do not pay your tax bill on time and cannot make an alternative arrangement to pay, HM Revenue and Customs (HMRC) can take ‘enforcement action’ to recover any tax you owe.

You can usually avoid enforcement action by contacting HMRC as soon as you know you’ve missed a tax payment or cannot pay on time.

They may agree to let you pay what you owe in instalments, or give you more time to pay.

Otherwise, there are a number of enforcement actions HMRC can take to get the tax you owe. They can:

• • collect what you owe through your earnings or pension
  • ask debt collection agencies to collect the money
  • take things you own and sell them (if you live in England, Wales or Northern Ireland)
  • take money directly from your bank account or building society (if you live in England, Wales or Northern Ireland)
  • take you to court
  • make you bankrupt
  • close down your business

Penalties for late filing

Late filing penalty fees

The penalty only applies to accounts. The level of the penalty depends on how late the accounts reach Companies House.

Corporation tax due date is 9 months and 1 day after the end of your accounting period.

If the payment is late or if you underpaid, you must start to pay interest on the unpaid amount. The current rate is:

https://www.gov.uk/government/publications/rates-and-allowances-hmrc-interest-rates-for-late-and-early-payments/rates-and-allowances-hmrc-interest-rates

Corporation Tax pay and file

https://www.gov.uk/vat-returns/surcharges-and-penalties

Surcharges

You may enter a 12-month ‘surcharge period’ if you default. If you default again during this time:

• the surcharge period is extended for a further 12 months
• you may have to pay an extra amount (a ‘surcharge’) on top of the VAT you owe

If you submit a late return, you will not have to pay a surcharge if you:

• pay your VAT in full by the deadline
• have no tax to pay
• are due a VAT repayment

HMRC will write to you explaining any surcharges you owe and what happens if you default again.

How much you pay

Your surcharge is a percentage of the VAT outstanding on the due date for the accounting period that is in default. The surcharge rate increases every time you default again in a surcharge period.

This table shows how much you’ll be charged if you default within a surcharge period.

Penalties

HMRC can charge you a penalty of up to:

• 100% of any tax under-stated or over-claimed if you send a return that contains a careless or deliberate inaccuracy
• 30% of an assessment if HMRC sends you one that’s too low and you do not tell them it’s wrong within 30 days
• £400 if you submit a paper VAT return, unless HMRC has told you you’re exempt from submitting your return using your VAT online account or Making Tax Digital compatible software

Every company, including dormant and non trading companies, must file a confirmation statement. It confirms the information we hold about your company is up to date.

You must file a statement at least once a year, but you may choose to file more often.

Changes you must make before sending your confirmation statement

Before confirming your records are up to date, you must tell us about changes to your:

• directors and secretary
• people with significant control (PSC)
• company’s registered office address

Changes you can make when you file your confirmation statement

The confirmation statement has an additional information section. You can complete this if there have been changes to your:

• Standard Industrial Classification (SIC) code
• statement of capital
• trading status of shares
• exemption from keeping a PSC register
• shareholder information

If nothing has changed

You must file a confirmation statement even if there have not been any changes to your company during the review period. This confirms that your records are up to date and the information we hold is correct.

You don’t usually get penalty for late filing of confirmation statement but Companies House will start the process to struck off your company.