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Why HMRC Alone is Not a Silver Bullet for Verifications

HMRC data is reliable but incomplete for employment verification. Relying solely on it risks missing key details—businesses must use additional sources for accuracy and fraud prevention.

HMRC data is a trusted source. It provides a reliable view of an individual’s taxed employment and income history, offering businesses a government-backed dataset to confirm employment status. Given its official nature, it’s no surprise that many organisations rely heavily on it. But while HMRC data is undoubtedly useful, it isn’t a silver bullet. 

Businesses that depend solely on HMRC data for verifications risk missing critical details that can impact hiring decisions, verification processes, and fraud prevention efforts. In reality, HMRC data provides only a partial picture of someone’s employment history—and failing to supplement it with additional data sources can leave businesses exposed to incomplete, outdated, or misleading information.

Where HMRC Data Falls Short

HMRC data is powerful, but some limitations make it unsuitable as a standalone verification solution. Here are some of the key challenges:

  • Access Issues: Some individuals can’t log in to Government Gateway, creating a dead-end for verification
  • Dormant Employments: Records may appear active despite no recent income or activity.
  • Duplicate Records: some employers report multiple records for the same employment
  • Missing Off-Payroll Work: Some roles are not reported to HMRC at all but can be found via other sources
  • No TUPE Continuity: Transfers under TUPE may appear as job changes, not continuous service.
  • No Job Titles: HMRC records show employment but lack job roles and responsibilities.
  • Incorrect Employer Names: Employer names can be misleading, showing directors or payroll functions instead.
  • No Gap Verification: HMRC data doesn’t confirm employment gaps
The complete picture

HMRC data plays an important role in employment and income verification, but it should never be the only source used in a verification waterfall. Businesses that rely solely on HMRC data risk:

🦯 Blind spots

🔧 A lack of automation

⚠️ Potential compliance issues

By combining HMRC data with payroll records, Open Banking, and advanced insights, businesses can achieve:

✔️ Greater accuracy

✔️ Faster decision-making

✔️ Better fraud prevention


Want to learn how a multi-source waterfall can transform your verification process?

➡️ Get in touch with us today to see how Konfir provides the complete picture.