What is a Tax Identification Number (TIN)?

Category: Business

Have you been asked for a Tax Identification Number, and you’re not sure what it is, or where to find it? Today we’re continuing our series of blog posts that look at some of the biggest concerns for small businesses, and since we’re all obligated to pay taxes as we earn money, we’re talking about Tax Identification Numbers (TINs). Before we get going, we need to point out that although we’re experienced in business, we are not tax professionals. While we’ve provided information here that we know to be accurate to date, and we will endeavour to update the post when things change, you should always do due diligence and ensure what we have here is in line with current rules and regulations. It is a good idea to check with your accountant or tax professional to ensure your tax information is correct, and check with HMRC if you are unsure whether you have the right number to file your taxes. What is a Tax Identification Number? A Tax Identification Number is exactly what it sounds like – it is a number that identifies an individual for tax purposes. The term Tax Identification Number is an umbrella term that covers all types of numbers that can be used when contacting official bodies for tax reasons. Tax Identification Numbers are used by most countries worldwide, to help identify tax paying individuals, to help with administering tax and to identify companies that need to pay taxes. Types of Tax Identification Numbers Although Tax Identification Numbers are used by most countries, they are different in each. Some countries use social security numbers, numbers from identity cards or passports or other national numbers. If you’re working in other countries and need to know what they use as TINs, you can find a list of types of Tax Identification Numbers or functional equivalents on this page. In this next section, we’re going to take a look at the UK (since the Avasam team is primarily based in the UK) and the US (because it is one of the biggest and most influential economies in the world). In the UK In the UK, Her Majesty’s Revenue and Customs (HMRC) creates Tax Identification Numbers, and there are two numbers that are most commonly used to identify individuals and businesses. These are the Unique Taxpayer Reference (the UTR) and the National Insurance Number (NI number). Both of these numbers are personal, and private to the individual they have been allocated to (and should be treated in the same way as any other personal information such as addresses or date of birth). Once allocated, they do not change throughout the person’s life. They are always laid out in the same format.