HMRC data is a trusted foundation for employment and income verification, providing a government-backed view of taxed employment and tax history. However, as we covered in our first blog of this series, HMRC data alone isn’t enough—it can be messy, incomplete, and sometimes misleading.

Businesses relying on HMRC-only solutions often struggle with duplicate records, dormant employment records, incorrect employer names, and unverified employment gaps.

Instead of spending time and resources trying to fill the gaps, and to clean and interpret noisy HMRC data, businesses need a solution that automates, enriches, and streamlines the process. This is where Konfir steps in.

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Turning tax records into usable data with actionable insights

Rather than relying on raw, unprocessed HMRC data, Konfir applies advanced data cleaning, enrichment, and verification processes to deliver a complete, accurate, and fraud-resistant employment history.

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Here’s how Konfir cuts through the noise:

1. De-duplication & Data Cleaning

Problem: HMRC data often contains duplicate employment records—especially in large employers like NHS trusts—as well as dormant employments that appear active despite no recent income.

✅ Konfir automatically detects and removes duplicates to present a clean, structured view of employment history.

✅ Dormant records are flagged, ensuring businesses don’t mistake inactive employments for active ones.

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2. Open Banking: Capturing Off-Payroll Work & Verifying Gaps

Problem: HMRC data only tracks taxed employments, meaning it misses off-payroll roles and employment gaps.

✅ Konfir integrates Open Banking data to:

• Identify off-payroll income, providing a fuller picture of work history.
• Verify employment gaps by returning insights into what an applicant was doing in between roles
  

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3. Payroll Data: Providing Job Titles

Problem: HMRC records confirm where someone worked, but they don’t include job titles—a crucial piece of the verification process.

✅ Konfir pulls job titles directly from payroll data if available, ensuring employers get accurate role verification.

✅ Businesses can validate whether an applicant’s declared position aligns with payroll records.

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4. Employer Database: Fixing Incorrect Employer Names 

Problem: HMRC data can sometimes list the wrong employer name, such as a payroll name or a company director name instead of the actual company. It also doesn’t differentiate between direct employment and umbrella or agency work.

✅ Konfir maintains a proprietary employer database to:

• Cross-check and correct employer names for better accuracy.
• Identify industry classifications (e.g., umbrella company, recruitment agency, or direct employer).
• Verify trading dates to detect inactive or fraudulent employment claims.

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5. Discrepancy Analysis: Identifying Red Flags & Undeclared Employment

Problem: HMRC-only data won’t flag employment discrepancies itself, making it difficult to spot fraud or inconsistencies between what is verified and what an applicant declares

✅ Businesses receive alerts for:

• Undeclared employments
• Differences in employment dates or employer names
• Differences in declared dates and company trading dates
• Potentially fraudulent employments via the Reference Fraud Check

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Operational Benefits vs. HMRC-Only Solutions

Beyond data accuracy, Konfir provides a faster, more automated, and fraud-resistant verification process:

✔️ Automated Data Cleaning & Alerts: Eliminates manual data reconciliation and reduces human error.

✔️ Faster Decision-Making: Pre-cleaned data reduces processing time, enabling quicker employment checks.

✔️ Enhanced Fraud Detection: Multi-source verification and additional insights ensure no blind spots in employment history.

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Compliance Benefits

Some HMRC-only solutions require users to input their Government Gateway credentials, which is a security and compliance risk.

✅ Konfir ensures compliance by never asking for or collecting any login credentials by leveraging source-specific authenticators

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Want to see it in action?

➡️ Book a demo today and discover how Konfir can transform your employment or income verification process