Simplify your global business payments

18-11-2021| treasuryXL | XE | LinkedIn

Whether your business needs to process 3 or 150 international payments a month, learn how you can make payments to 220+ countries within your own business applications, and benefit from:

• Faster automated payment processes
• Savings using bank-beating exchange rates
• More accurate reporting by eliminating manual errors
• Secure transactions by validating payment data before it’s sent
• Transparency by receive tracking and reporting of each payment to its destination
• Flexibility to send to multiple currencies in a single file upload

Xe enables you to achieve everything a third-party payment provider has to offer, directly from your own business applications.

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5 reasons why integrating Xe Global Business Payments into your own business applications will help power your business:

1. Improve your Financial Reporting
Xe Global Payments within your own business platform allows you to automatically reconcile foreign currency exchange rates directly at time of transaction. This means no more duplication or transferal of data from one application to another. Greater accuracy means greater transparency and visibility on your financial reporting, enabling you to make more confident business decisions.

2. Protect supply chain relationships and staff in overseas offices
If you are paying suppliers overseas, you want to ensure that your supply chain is protected, that you have full visibility on expenses so that your customer base is not impacted by any delays or rise in cost. And if you need to pay staff overseas you want to ensure they receive the right amount, on time, every time. By using Xe Global Business Payments within your own platform, any errors with bank account details are immediately highlighted, giving you time to rectify any costly mistakes.

3. Stop paying more than you should
Xe’s preferential exchange rates typically save you typically more money than if you used your bank for your business global payments. When you streamline your payment processes using Xe Global Business Payments in your own application, you are saving time on every overseas payment. That means you can save both time and money.

4. Improve speed and accuracy of high-volume, time-sensitive payments
It’s so important to have strict data verification and validation processes. We verify payments before they’re sent, so we can quickly flag any unsuccessful payments. For example, our system has a table of rules for each of the different payout currencies we offer. If you uploaded a payment to Brazil without a bank CLABE number, it would tell you it’s missing. Sending certain currencies can be extremely problematic, so we take out the guess work and make sure payments get where they need to go.

5. Get the right specialist support
A solution can only be as good as the support it offers. At Xe, we understand the daily challenges global Finance functions face. Our support team establishes a good rapport with clients and get to grips with the practical and technical elements of resolving problems quickly and efficiently. Our experts are available around the clock, to resolve issues no matter where clients are located or what time zone they’re in.

By using Xe Global Payments within your Microsoft Dynamics 365 or Sage Intacct applications, you can streamline your international payments process, and benefit from quality customer service and support from Xe’s front and back-end operations.

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Changing priorities of corporate treasurers post-pandemic

| 15-11-2021 | Eurofinance | treasuryXL | LinkedIn

More than 18 months have passed since treasury professionals around the world had to leave their offices at short notice due to the escalating covid-19 crisis. In April 2021, EuroFinance carried out a survey to find out more about the different ways the pandemic has affected treasury professionals. Alongside the adoption of remote working, the subsequent report highlights treasurers’ accelerated adoption of digital technologies, and the contribution that treasurers make to board-level decision-making during a crisis.

What are the key takeaways from this report?

The importance of cash flow forecasting has been underlined by the crisis. Almost three quarters of treasury professionals have increased their focus on cash forecasting during the crisis, while 54% plan to prioritise cash forecasting in the future.
Cash management and liquidity management remains a top priority for treasury professionals. Seven out of ten said cash management/liquidity management was a top priority going forward.
Covid-19 has accelerated digital transformation. Alongside the rise in remote working, treasury teams have increased their adoption of robotic process automation (RPA), APIs/cloud, machine learning/AI and virtual accounts/in-house banks.
Treasurers have been more involved in board-level decision making during the pandemic, with 39% of treasurers saying they are more involved since the crisis began.

Want to see the full report?

Download here

How To Expand Your Business Overseas

11-11-2021| treasuryXL | XE | LinkedIn

As a growing business, expanding overseas can present a lot of exciting opportunities. However, it also requires some careful thought as it can seriously disrupt your existing business activities – even if only temporarily. Therefore, it’s vital that business owners looking to expand have fully understood the impact this will have on the day-to-day running of the company, as well as determining whether the rewards are going to outweigh the risks. If going overseas is the next important step for your business, that’s great news, but knowing where to start can be tricky. You need to gain a deep understanding of the competition, local market, whether you’ll need new office space and how you’ll build your international team.

That’s why we’ve put together this guide. Below, we’re going to take a look at eight steps you must take when expanding your business overseas if you hope to succeed.

Read on to find out more.

1. Perform due diligence

Following on from what we said above, before you expand overseas, it’s crucial that you understand the marketplace, competition and the risks. The best way to do this is to perform a deep dive due diligence. This should involve:

A market segmentation analysis to determine if your product will be well received in the local market
A product gap analysis when compared with other local goods or services
Competitor analysis
Your market opportunity/sizing
How you’ll need to grow/adapt your team to cater for your international expansion

By doing so, you can determine whether this is going to be the right move for your business and your workforce whilst weighing up the risks and rewards.

2. Put together a detailed strategy and business plan

As with any new business decision – especially one of this size – a detailed strategy and business plan need to be created. This needs to take into account the specific economic, cultural, governmental and market conditions in the local area.

Your strategy should include your short, medium and long-term goals, and it should set out your metrics for measuring success. It’s also important to create a budget, tactical plan, key dates and marketing strategy.

By putting together a localised strategy in this way, you can stay on the path to success whilst ensuring that your move overseas stays in line with the overall business goals and objectives.

3. Create a frontline team

When moving your business overseas, it can be tempting to quickly try and build a local team from scratch. This can be extremely time-consuming, risky and means your expansion is not going to get off to the best start.

Instead, you should consider relocating some of your key senior staff, even if the move is just temporary. By relocating proven and talented members of your team to your overseas location, you can hit the ground running.

After all, they already know the business, so they can get things set up. They can then help with the recruiting process to ensure that you employ local people who fit with the company culture and can continue to drive the business forward. This will obviously take a bit of work and lots of incentives to have staff members be willing to relocate but taking most of the stress out of it with luggage shipping and providing temporary housing is a good start.

4. Make sure your goods or services are prepared

Your gap analysis should have highlighted any areas of weakness, so you need to take the necessary steps to get your goods or services ready for the new local marketplace. This means:

Making changes to ensure your goods or services stand out from existing offerings
Determining whether you need to localise your goods or services. For example, does the name translate OK into the local language or does it need changing?
Getting a patent and trademark review to ensure your ideas cannot be duplicated by another local provider
Conducting tests and quality assurance to ensure your goods or services are up to local standards
Starting to build a local logistics and distribution network

5. Determine your organisational readiness

A one size fits all approach will not work when it comes to moving your business overseas. This is because the different languages, regulations, laws, customs and cultures will impact how you implement business policies and procedures.

Therefore, you need to make sure that your business can be flexible and accommodate these differences. You also need to evaluate your current structure and whether this will work in another country.

Not only this, but you need to decide on the average salaries, compensation packages and types of benefit programs you’ll be able to offer to your workforce. Remember, if you want to attract talented local professionals, you need to offer competitive packages.

6. Create a marketing strategy

When entering a new market, you need to make sure you have a go-to marketing strategy in place to help you effectively sell your goods or services overseas. This requires a strong sales model and methodology, as well as a pricing model that reflects the local market.

You also need to make sure that your branding will be well received by your new international customer base and create a marketing strategy that shouts about this.

7. Consider your legal readiness

Just as with your organisational readiness, you also need to make sure that you have all the necessary legal documentation and regulations in place, especially because some countries can be very litigious. If you’re unsure what you need to do, it might be time to get a professional opinion before spending time and money expanding overseas.

By ensuring that you get all the right local commercial agreements in place, review any local industry regulations and just generally stay proactive, you can mitigate the risks of legal action or problems further down the line.

This also includes getting the proper tax and finance infrastructures set up so that your foreign branch of the business is adhering to all local corporate policies and procedures.

8. Start establishing relationships with local businesses

The final step in this guide is to start establishing relationships with local businesses to give your own business a strong competitive advantage.

In doing so, you can create a supporting ecosystem of complementary products and services by working closely with local providers. For example, this could be manufacturers, shipping and courier services or local banks.

Now you’re finally ready to make the leap; you should be all set up financially, legally and with a team of talented professionals ready to help expand your business.

Netflix’s ‘Squid Game’ and the 45 billion won question: “How much is that worth?”

04-11-2021| treasuryXL | XE | LinkedIn

The South Korean won has unexpectedly become the world’s second-most searched currency.

It’s safe to say that almost everyone watching ‘Squid Game’ has wondered what the cash prize is actually worth in their local currency. Searches for currency conversion of the South Korean won (KRW) to various local currencies, especially the Mexican peso (MXN) and US Dollar (USD), have skyrocketed in popularity since the show started streaming on September 17th. Being the world’s most trusted currency authority here at Xe, we saw our traffic spike over 1,000% for just those two conversions alone.

45 billion is a lot of money in any currency. But for viewers everywhere, we are here to break down that number for you!

Using Xe’s live exchange rates, 1 KRW is worth approximately 0.00084 USD, or 0.01737 MXN, or… select any currency and see for yourself! That means that the cash prize amount of 45.6 Billion Korean converts to over $38,000,000 USD.

Now, if only I could find some white Vans for my Halloween costume… Those searches spiked over 7,800%!

Why Do Currencies Fluctuate?

21-10-2021| treasuryXL | XE | LinkedIn

These days, some currency rates are jumping to all-time highs while others plunge to record lows. Exchange rates are constantly fluctuating, but what, exactly, causes a currency’s value to rise and fall? Simply put, currencies fluctuate based on supply and demand.

Most of the world’s currencies are bought and sold based on flexible exchange rates, meaning their prices fluctuate based on the supply and demand in the foreign exchange market. High demand for a currency or a shortage in its supply will cause an increase in price. A currency’s supply and demand are tied to a number of intertwined factors including the country’s monetary policy, the rate of inflation, and political and economic conditions.

Monetary Policy

One way a country may stimulate its economy is through its monetary policy. Many central banks attempt to control the demand for currency by increasing or decreasing the money supply and/or benchmark interest rates.

“With a low interest rate, people and businesses are more willing and able to borrow money”

The money supply is the amount of a currency in circulation. As a country’s money supply increases and the currency becomes more available, the price of borrowing the currency goes down. The interest rate is the price at which money can be borrowed. With a low interest rate, people and businesses are more willing and able to borrow money. As they continually spend this borrowed money, the economy grows. However, if there is too much money in the economy and the supply of goods and services does not increase accordingly, prices may begin to inflate.

Rate of Inflation

Another variable that heavily influences the value of a currency is the inflation rate. The inflation rate is the rate at which the general price of goods and services are increasing. While a small amount of inflation indicates a healthy economy, too much of an increase can cause economic instability, which may ultimately lead to the currency’s depreciation.

A country’s inflation rate and interest rates heavily influence its economy. If the inflation rate gets too high, the central bank may counteract the problem by raising the interest rate. This encourages people to stop spending and instead save their money. It also stimulates foreign investment and increases the amount of capital entering the marketplace, which leads to an increased demand for currency. Therefore, an increase in a country’s interest rate leads to an appreciation of its currency. Similarly, a decrease in an interest rate causes depreciation of the currency.

Political and Economic Conditions

The economic and political conditions of a country can also cause a currency’s value to fluctuate. While investors enjoy high interest rates, they also value the predictability of an investment. This is why currencies from politically stable and economically sound countries generally have higher demand, which, in turn, leads to higher exchange rates.

Markets continually monitor the current and expected future economic conditions of countries. In addition to money supply changes, interest rates, and inflation rates, other key economic indicators include gross domestic product, unemployment rate, housing starts, and trade balance (a country’s total exports less its total imports). If these indicators show a strong and growing economy, its currency will tend to appreciate as demand increases.

Similarly, strong political conditions impact currency values positively. If a country is in the midst of political unrest or global tensions, the currency becomes less attractive and demand falls. On the other hand, if a market sees the introduction of a new government that suggests stability or strong future economic growth, a currency may appreciate as people buy it based on the good news.

Conclusion

There is no single indicator that explains exactly why a currency has fluctuated or predicts with certainty what its price will do. Instead, many factors related to demand and supply affect currency values. What has been shown is that more knowledge and understanding of market conditions and their implications for currency fluctuations leads to more accurate predictions.

#9 Not Searching For Alternatives

14-10-2021 | treasuryXL | Xe

This is the last part of XE’s ‘9 Mistakes Your Business Should Avoid’ journey. We have reflected upon Currency risk mistakes that companies worldwide often make. It is important to learn from these mistakes in order to avoid them. The message of this manual is that paying attention to foreign currency can deliver benefits ranging from increased value to better Risk management. To reap the benefits, it is important to work with a currency provider who understands what you need and who can help you achieve your goals. It is possible that your current currency provider can provide that, but if you don’t look around you won’t know if it might be better.

“Aandacht besteden aan vreemde valuta kan veel voordelen opleveren, variërend van meer waarde tot beter risicobeheer.”

Niet rondkijken naar alternatieve valutaservices is dan ook een enorme fout. Het is mogelijk dat u daardoor betere koersen misloopt, geen gebruik kunt maken van diensten waarvan u het bestaan niet kende en valuta niet strategisch kunt benaderen zoals zou moeten als praktijk en beleid een afspiegeling zouden moeten zijn van uw handelsomgeving. Ga er niet van uit dat de diensten die uw bank verleent, van het niveau en de kwaliteit
zijn die u nodig hebt. Het is gemakkelijk om bij uw bank te blijven en de zekerheid te hebben van een vertrouwde provider. Maar uw bank kan wellicht niet dezelfde verscheidenheid aan valutadiensten bieden als een gespecialiseerde provider die alleen vreemde valuta doet. Dat wil niet zeggen dat u de hype van concurrerende providers moet volgen. Als bijvoorbeeld een koers te goed klinkt om waar te zijn, dan is dat ook vrijwel zeker het geval. Wees ook sceptisch als providers u aanmoedigen om te gaan speculeren op valutamarkten of u ervan proberen te overtuigen dat ze koersschommelingen kunnen voorspellen.

Het klinkt misschien tegenstrijdig, maar de beste hedgepositie is degene die geen voordeel oplevert: een verzekering die u afsluit voor het ergste geval, terwijl u hoopt op het beste, namelijk dat de valutamarkten niet in uw nadeel bewegen. In werkelijkheid biedt zelfs een geslaagde hedge slechts wat meer tijd. Wat u nodig hebt, is een provider die de tijd neemt om erachter te komen wat de specifieke eisen van uw bedrijf zijn in plaats van een standaardservice te bieden. Competitieve koersen spelen natuurlijk een rol bij uw zoektocht, maar moeten zeker niet uw enige overweging zijn. U hebt een provider nodig die een oplossing op maat kan ontwikkelen die aan al uw eisen voldoet en u kan helpen om uw toekomstige risico effectiever te beheren. Neem met minder geen genoegen.

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No More Excuses! It’s Time to Implement the Right Hedging Program

11-10-2021 | treasuryXL | Kantox

More than half the participants of the Kantox & TMI FX Survey describe their existing currency hedging program as inadequate. And that’s not all: 72% of participants admit the need for updates and changes to their policies and programs going forward.

How do we account for this widespread inadequacy? The answer is simple. Most managers start by assessing the available Treasury resources. Only then do they set up the firm’s hedging programs.

This is the wrong approach.

Instead, managers should start by assessing the FX needs of the business, paying special attention to the firm’s pricing parameters. Only then should they design the hedging program.

Over-hedging —the situation of a firm that has hedged in anticipation of an exposure that has failed to materialise— is a perfect example of the challenges posed by a program designed with the available technology. As the Kantox & TMI Survey shows, it is one of the most pressing concerns for treasurers.

The problem of over-hedging is often associated with a ‘lack of visibility’ in treasurers’ forecasts. The apparent solution then is to ask for more staff to be hired at the Treasury team.

At Kantox we disagree with this diagnosis.

More often than not, over-hedging is the byproduct of a hedging program that was badly designed from the start—and where the wrong tools were applied. Spreadsheets, TMSs or ERPs, were never designed with FX management needs in mind.

That’s why it is becoming more and more important to use technology that is flexible enough to allow managers to deploy FX programs that are tailored to the specific needs of the business.

Starting off on the right foot

Take the case of a company that does not update its prices frequently, yet has an FX-sensitive business model, favourable forward points, and a low degree of forecast accuracy. It would be hazardous for such a firm to rely on a traditional ‘static program’ where the whole budget is hedged at the start of the period.

Instead, the magnitude of an early static hedge should be kept within the bounds of what is nearly 100% certain in terms of accuracy. For the rest of the budget, a more dynamic combined program —based on firm commitments— can be designed.

Such hedging programs and combinations of programs can be tailored to fit any business model and pricing parameters. By applying these programs, companies make sure that situations of under or over-hedging are avoided, and that a hedge rate that is equal or better than their budget/campaign rate is systematically achieved.

But this requires technology.

A game-changer: Streamlining the end-to-end FX processes

There is a way out of the costs created by inadequate hedging programs. As Antonio Rami, Kantox’s co-founder and Chief Growth Officer put it during a recent Kantox webinar: “By using technology to streamline the end-to-end process of FX risk management —from the pre-trade phase down to the accounting tasks— companies can sidestep the pitfalls of softwareless currency management”.

Armed with a thorough understanding of the FX needs and pricing dynamics of their business, companies can deploy the Currency Management Automation solutions needed to create —and to execute— the hedging program that best suits the business.

It’s high time to ditch excuses like the ‘lack of visibility’, ‘high FX volatility’ and ‘insufficient treasury resources’.

Start off on the right foot instead. Look at the needs of the business first, and then go for the hedging program that allows your firm to take advantage of emerging growth opportunities—just about anywhere in the world.

5 Tips for Currency Exchange

07-10-2021| treasuryXL | XE |

If you’ve ever travelled abroad, sent a money transfer to family overseas, or made international business payments, you know it can be a pain to exchange currency. Searching banks, online exchange providers, or the streets of an unknown city for the best rates can be time-consuming and costly. And, if you don’t pay attention, foreign exchange costs can add up.

Here are five tips to help you save on currency exchange.

1. Plan Ahead

Find out what the current mid-market exchange rate is with our XE Currency Converter or XE Currency App. Next, compare the rates and fees offered by banks, exchange cambios, and online providers. Once you find the best deal, exchange your funds.

2. Understand Foreign Exchange Costs

Some foreign exchange costs can be transparent and others can be hidden, so it is important to understand what you are paying for. Just like every other company, foreign exchange providers need to make a profit to stay in business. The following are three ways in which providers make money:

Currency providers may charge a commission, flat fee, handling fee, or minimum charge
They may include a spread in exchange rates by buying currencies at one rate and selling them at another – with a margin included
FX providers may also charge transfer fees for wire transfers and other delivery methods

You can calculate your currency exchange costs with our XE Foreign Exchange Charges Calculator. Or, download the XE Currency app for iPhone and use our Rate Advisor to compare your provider’s price to the mid-market rate.

3. Consolidate your Transactions

Since every currency exchange transaction has associated costs, fewer transactions can sometimes result in lower costs. Depending on the type of transaction, you may save money by consolidating several money transfers into one large transaction. Some foreign exchange providers may even offer better rates, or waive commission fees for currency exchanges over a certain amount.

4. Beware of Counterfeits

Every country has its fair share of counterfeit currency – some more than others. To avoid fakes, try to become familiar with the look and feel of the currency. Take note of watermarks and other security features. This can make spotting a fake easier, although it probably won’t be possible to spot a high-level counterfeit. Try to use trusted foreign exchange providers and established currency exchange companies.

5. Bank Overseas for Extended Stays

If you’re moving abroad, studying internationally, or plan to stay in a foreign country for a long period of time, consider sending money and banking overseas. Opening up a local bank account can minimize fees and help keep your money secure. It also makes consolidating your currency transactions much easier and helps mitigate the risk of currency fluctuations.

#8 Working with a Currency Provider that uses Rigid Procedures

30-09-2021| treasuryXL | XE |

A common problem for companies looking to manage Currency Risk effectively and want to carry out transactions as cheaply as possible, is that the terms of their currency provider are not flexible enough. This can especially be a problem for companies for which a hedging strategy is suitable but who are put off by the need to pay upfront or a margin for their forward positions. Some currency providers may in such situations offer more flexible credit terms than others.

Zonder die flexibiliteit is een hedgingstrategie voor sommige bedrijven niet haalbaar, zelfs als het valutarisico van het bedrijf aanzienlijk verminderd zou kunnen worden door de implementatie van zo’n strategie. In andere gevallen kunnen bedrijven wel hedgingposities nemen, maar niet onder de voorwaarden die het best bij hun individuele omstandigheden passen. Denk ook aan andere vormen van flexibiliteit. Biedt uw valutaprovider bijvoorbeeld toegang tot verschillende soorten betaalservices? Dat kan van belang zijn als u snel betalingen wilt doen aan verschillende partijen in verschillende markten en tegelijk zo veel mogelijk tijd wilt hebben om de transactie te voltooien. Zoek een provider die zijn service kan afstemmen op uw specifieke eisen en wensen. Uiteindelijk gaat het erom uw bedrijf zo veel mogelijk speelruimte te geven. Of het nu gaat om de dagelijkse transacties of het beheren van het langetermijnrisico, de manier waarop u vreemde valuta benadert, moet worden bepaald door zakelijke eisen en niet door de beperkingen en rigiditeit van uw valutaprovider. Bespreek met verschillende providers wat zij u kunnen bieden.

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Your guide to UTR codes (with a UTR number example, how to get a UTR, and what to do if you lose it)

23-09-2021| treasuryXL | XE |

Whether you want to find a UTR and use it, or you’re lost in a maze thinking of what you should do if you lose the number, we’ve got your back with a UTR number example and more!

A Unique Taxpayer Reference (UTR) number is a code that identifies you or your business in the United Kingdom for tax purposes. Her Majesty’s Revenue and Customs (HMRC), a UK government department, is responsible for collecting taxes in the country and uses your UTR number whenever it deals with your tax.

You may need a UTR for submitting a tax return to HMRC, depending on whether you meet their eligibility criteria.

Feeling foggy already? Whether you want to find a UTR and use it, or you’re lost in a maze thinking of what to do if you lose the number, we’ve got your back, so take it easy!

We’ve also thrown a UTR number example into the bargain to help you understand all of this better. Let’s get the (UTR) show going, shall we?

What’s a UTR number example?

All UTRs have 10 digits, which sometimes end with the letter ‘K’. A simple UTR number example is 12345 67890, with a gap between 2 pairs of 5 digits each.

Do I need a UTR number?

If you have forms of income or expenses that require you to file a Self Assessment tax return, you’ll need a UTR number. This applies in case you:

Are or were self-employed as a sole trader and you earned over £1,000 GBP (without claiming tax relief) in the last tax year (April 6 to April 5), or
Are a partner in a business partnership (even a nominated partner will do), or
Have untaxed income (like commissions, income from renting out a property, or foreign income), or
Want to claim an Income Tax relief, or
Are a subcontractor who’s either self-employed, a partner in a trust or partnership, or the owner of a limited company in the UK (in all these cases, you’ll have to register for the Construction Industry Scheme or CIS).

In the case your sole income is from your wages or pension, you won’t need to send a return.

However, keep in mind that if you submit your tax return to HMRC 3 months (or more than 3 months) later than the deadline, you may face a minimum penalty of £100 GBP, along with interest on late payments of your tax bill.

How do I find out my UTR number?

First things first, register for a tax Self Assessment, if you have to send an income tax return. You can either register online, or fill up an application form on the HMRC website, print it out, and post it to HMRC.

Once your registration process is complete, or you’ve formed a private limited company in the UK, HMRC will send you an SA250 “Welcome to self-assessment” letter.

You’ll find your UTR number on the top right of the letter, along with a 12-digit activation code (for non-personal tax accounts). This activation code is necessary for signing in to your online self-assessment account with HMRC for the first time.

In case you don’t receive the activation code, though, or you lose it within 28 days of enrolling for the online service, you can sign in to your online HMRC account and simply ask for a new code.

If you’d already registered for the self-assessment and sent a return online before, your UTR should be on your previous tax returns, payment reminders, return filing notices, and other official documents from HMRC like P45 and P60.

Look out for a 10-digit number under “Tax Reference”, just like the UTR number example we’ve included at the beginning of this article.

How long does it take to get a UTR number?

HMRC automatically issues a UTR number as soon as you register for Self Assessment or you set up a private limited company.

You’ll get a letter from HMRC with the UTR number within 7-10 working days for UK addresses, but it can take up to 21 working days, too, if you’re based abroad.

How can I get my UTR number online?

After registering for tax self-assessment and creating your online account with HMRC, you can find your UTR number online.

Log in to your HMRC account for viewing your tax returns and UTR. Plus, it has become easier now to check your UTR number online via the official HMRC app.

Is my UTR number on my payslip?

If you’ve got a payslip or PAYE coding notice that HMRC sent you, you should be able to find your UTR number there.

By the way, don’t worry if the payslip is 10 or 20 years old, as the UTR number won’t change, ever.

How much tax do I pay with a UTR number?

Let’s assume that you’re a subcontractor working on a couple of construction projects in the UK. Before your contractor can pay you for the first time, he or she must check whether you’re registered for self-employment as well as for CIS.

If the contractors find your UTR on HMRC’s list of CIS-registered subcontractors, they’ll deduct tax at a flat rate of 20% from your payments and pass it on to HMRC.

But if you haven’t given your UTR yet to your employers, or they can’t find your UTR number on the list of CIS subcontractors, they must deduct 30% tax from your pay instead. So, whether you’re living in the UK or abroad, registering for CIS is a smart idea.

You can even apply for gross payment status at the time of the CIS registration process, if you want contractors to pay you in full, without any tax deductions.

Can I have 2 UTR numbers?

No, you’ll get only 1 UTR number, whether it’s a personal UTR or one for a limited company in the United Kingdom. Even if you own multiple companies, each of those will get 1 company UTR number in the UK.

Is UTR the same as National Insurance (NI) number?

Nope. An NI number is a reference number for the country’s social security system.

You have to apply for an NI number when you’ve just turned 16 and you’re working in the UK, applying for a student loan, or you want to claim tax and other state benefits.

In fact, HMRC asks for your National Insurance number and other personal details when you register for self-assessment to get a UTR.

Can I file a tax return without a UTR number?

Long story short, no. You’re definitely going to need your UTR when you submit a self-assessment tax return for the first time.

What if I’ve lost my UTR number?

If you’ve lost or forgotten your UTR number, you can easily recover it from an HMRC document.

But when you can’t get hold of any such documents either, you can ask for your UTR by calling the Self Assessment helpline on a UTR customer service number given below:

0300 200 3310 (if you’re in the UK)
0300 200 3319 (if you’re in the UK)
+44 161 931 9070 (if you’re abroad)

It’s also possible to request Corporation Tax UTR from HMRC, in case you’ve got a private limited company in the UK.

For that, you’ll have to provide HMRC with your registered company name and your company registration number (CRN). HMRC will then send the UTR to the business address you had registered with Companies House.

How to contact HMRC for UTR-related and other queries

Apart from the phone numbers we’ve listed above, you can also get in touch with HMRC via:

Online videos and webinars. These are available for queries regarding the self-assessment.
Twitter. Start your tweet with the tag @HMRCcustomers for general support (please don’t mention your UTR number or any personal info, as it’s a social platform).
Webchat. A “speak to the adviser” link will appear whenever an adviser is available, so click on that link immediately. If you don’t, you’ll have to wait till another adviser gets available.
Post. Write to HMRC at this address: Self Assessment, HM Revenue and Customs, BX9 1AS, United Kingdom. You don’t need to include a city name, PO box, or street name here.

What about Unique Transaction Reference numbers?

Unique Taxpayer Reference numbers aren’t the only UTR numbers out there. You may also see the acronym refer to Unique Transaction Reference numbers. While the two numbers share an abbreviation, they are two very different things with very different uses. Unique Transaction Reference numbers are unique codes meant to help banks identify and recognize financial transactions in India. Keep an eye on this space—we’ll discuss these numbers in greater detail in a future blog post!

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