What is a Tax Reference Number?
In this guide, we’ll break down what a Tax Reference Number is, how it’s used, where to find it, and why it's essential for managing your tax affairs correctly.
Tax Reference Number is also known as the Employer PAYE Reference
If you’ve ever dealt with HMRC, opened a new job, or filed a Self Assessment tax return, you’ve likely come across the term “Tax Reference Number.” But what exactly does it mean, and why is it so important in the UK tax system?
It is a unique code issued by HM Revenue & Customs (HMRC) to every employer that operates a Pay As You Earn (PAYE) scheme. It identifies the employer for tax purposes and ensures the correct allocation of employee income tax and National Insurance contributions.
It is often confused with other reference numbers like the Unique Taxpayer Reference (UTR) or National Insurance Number, but each serves a distinct role in the UK tax system.
Key Features of a Tax Reference Number
| 🔍 Feature | 📄 Description |
|---|---|
| Issued By | HM Revenue & Customs (HMRC) |
| Format | Typically in the format 123/A45678 |
| Used For | PAYE reporting, employee tax records, HMRC communications |
| Found On | P60, P45, payslips, HMRC letters |
| Applies To | Employers (not individuals) |
Why Is It Important?
The Tax Reference Number ensures that:
HMRC accurately tracks the tax an employer deducts from its employees.
Employees' tax records are matched to the correct PAYE scheme.
Any queries or compliance checks with HMRC can be efficiently managed.
Without this reference, tax documents could be misallocated, leading to delays or errors in tax processing.
Where Can You Find Your Tax Reference Number?
You can typically locate your Tax Reference Number in any of the following places:
Your P60 or P45 – Located near the top of the document
Payslips – Often displayed alongside employer details
Employer’s PAYE correspondence – Included in letters or emails from HMRC
Employer’s payroll software – Usually stored in settings or tax sections
Note: If you're an employee, your tax reference will reflect your employer’s PAYE scheme—not your personal tax account.
Who Uses a Tax Reference Number?
Employers: Required to use this number when submitting tax information for their employees.
Employees: May need the number when contacting HMRC, checking their tax codes, or transferring between employers.
Accountants or Payroll Providers: Use this reference to handle PAYE submissions or inquiries on behalf of a business.
Tax Reference Number vs Other HMRC Identifiers
To avoid confusion, here’s how a Tax Reference Number differs from other commonly used HMRC identifiers:
| Identifier | Purpose | Format | Who It Belongs To |
|---|---|---|---|
| Tax Reference Number | Identifies employer PAYE scheme | 123/A45678 | Employer |
| Unique Taxpayer Reference (UTR) | Used for Self Assessment | 10-digit number | Individual or Company |
| National Insurance Number | Tracks individual contributions | AB123456C | Individual |
How to Get a Tax Reference Number
If you’re starting a new business or becoming an employer, you’ll need to register as an employer with HMRC. Once registered, HMRC will issue you:
A PAYE reference number
An Accounts Office reference number (for payments)
This typically arrives by post within 5–10 working days of registration.
🔎 Register online: https://www.gov.uk/register-employer
What If I Lose My Tax Reference Number?
If you’re an employer and have misplaced your tax reference, you can:
Check previous correspondence from HMRC
Log into your business tax account on the HMRC online portal
Contact HMRC's Employer Helpline directly
Employees should reach out to their employer or check their P60 or payslip.
Frequently Asked Questions (FAQs)
1. Is a Tax Reference Number the same as a UTR?
No. A Tax Reference Number is linked to an employer’s PAYE scheme. A UTR is linked to an individual’s Self Assessment tax return.
2. Do all businesses need a Tax Reference Number?
Only businesses that employ staff and run a PAYE scheme are assigned a Tax Reference Number.
3. Can I have more than one Tax Reference Number?
Yes, if you run multiple PAYE schemes (e.g. for different company branches), HMRC may issue separate Tax Reference Numbers.
4. Can an employee use their employer’s Tax Reference Number to contact HMRC?
Yes, employees may be asked to provide their employer’s Tax Reference Number when querying tax deductions or correcting tax codes.
Summary: Key Takeaways
| 💡 Key Point | 📌 Summary |
|---|---|
| What it is | A code issued by HMRC to employers running a PAYE scheme |
| Format | Usually in the format 123/A45678 |
| Where to find it | Payslips, P60/P45, HMRC letters, or payroll software |
| Who uses it | Employers, employees, accountants, and HMRC |
| Not to be confused with | UTR or National Insurance Number |
Final Thoughts
Understanding your Tax Reference Number is key to ensuring tax compliance—whether you’re a business owner, an employee, or a payroll manager. It helps HMRC track PAYE contributions, allows for smoother communication, and ensures accurate tax records.
If you’re unsure about your tax position or need help setting up PAYE, consulting a qualified accountant or tax advisor can provide clarity and peace of mind.