Modern Employment Verification: Leveraging HMRC PAYE Records

In Episode 7 of EBC Global’s Webinar Series, we explored the future of employment verification and how businesses can adapt to evolving industry standards. Whether you’re new to employment checks or looking to optimise your current process, this episode provided valuable insights to help you stay compliant and ahead of the curve.

Missed the webinar? Watch it here:

 

The Changing Landscape of Employment Verification

Employment verification has evolved significantly over the years. From traditional character references to modern, technology-driven solutions, businesses now have better ways to confirm employment history.

 

Key drivers and trends include:

  • Increasing regulatory requirements – Character references are no longer as reliable due to rising fraud.
  • Explosion of reference fraud – Fake reference providers and fabricated employment histories are more common than ever.
  • Technology-driven verification methods – Modern tools offer accurate, efficient, and tamper-proof verification.

 

Introduction to Modern Employment History Verification

A UK Employment History Verification (EHV) check provides a reliable way to confirm an individual’s employment history. By obtaining official records directly from His Majesty’s Revenue & Customs (HMRC), businesses can access:

  • National Insurance Number
  • Current Address
  • Employer Name and PAYE Reference
  • Employment Start and End Dates
  • Taxable Income
  • Income Tax Paid
  • Tax Code
  • Unemployment Benefit Payments Received

This method ensures accurate, efficient, and fraud-resistant employment verification.

 

The Common-sense Approach to Referencing

  • Limited information in references – Many employers now only confirm employment dates.
  • Efficient candidate experience – HMRC data eliminates the need for additional documents.
  • Reduced fraud risk – Tamper-proof HMRC records provide reliable data.
  • Early identification of issues – Employers can spot employment gaps or hidden roles upfront.
  • Saves time and resources – Clear data reduces administrative work and delays.

 

Who Benefits from Employment History Verification?

EHV is a cost-effective, accurate, and instant employment verification method that benefits multiple stakeholders:

  • Candidates – Avoids delays in starting new roles.
  • HR Teams – Speeds up hiring and onboarding.
  • Vetting Teams – Provides clear and reliable employment data.
  • Reference Providers – Reduces administrative burdens and improves efficiency.

 

Latest Industry Insights – Key Statistics

  • Employment fraud – 19% increase in reported incidents (ONS, 2024).
  • Deepfake fraud – identified instances increased from 500,000 to 8 million in just the last 12 months (UKGOV).
  • Sexual assaults at work – 26% of assaults occurred in the workplace and 1 in 4 cases go unreported (Government Equalities Office, 2024).
  • CIFAS Fraudscape 2024 findings:
    • Dishonest employee actions make up 49% of all insider threat cases.
    • 38% of fraudsters were employed for less than a year (81% increase from 2023).

 

The Problem with Traditional References

  • Fear of retaliation – Referees hesitate to provide detailed feedback.
  • Bias and subjectivity – References can be overly positive or negative.
  • Inconsistent information – Reference quality varies widely.
  • Fraud and misrepresentation – Fake references are increasingly common.
  • Time-consuming process – Chasing references causes unnecessary delays.

 

The Need for Evolution in Employment Verification

  • Increased competition for fewer roles – Businesses face rising hiring costs.
  • Changing workforce dynamics – Gig work and remote jobs are now common.
  • Demand for accuracy and speed – Faster hiring and reliable data are essential.
  • Regulatory requirements – Vetting standards are evolving and embracing technology.

 

Modern Employment Verification Options

  • E-Referencing – Automated, efficient, end-to-end reference checks.
  • HMRC PAYE Records – Verifies five years of employment history.
  • Open Banking – Confirms employment using categorised income payments.
  • Payroll Verification – Uses payroll data for employment confirmation.
  • Instant Verified Data – Paid-for online verification services.

 

Why Adopt HMRC EHV Checking?

Employment Verification Features:

  • Secure and GDPR-compliant data access.
  • Fast data retrieval with instant results.
  • Comprehensive records, including employment, income and benefit claim details.

Benefits:

  • Improved accuracy.
  • Lower fraud risk.
  • Supports compliance in aviation, security, and public sector vetting.
  • Cost-effective and efficient.

 

How it Works – Candidate Journey

Employment Verification - Candidate Journey

 

Vetting Team Journey – Process Flow

Employment Verification - Vetting Process Flow

 

Chat with the Team About Background Screening Policy!

Modern employment history verification can streamline your vetting and onboarding process, making it more efficient and secure. Fraudsters continuously evolve, and businesses must adapt to stay ahead. Upgrading your screening policies and processes is essential to mitigate new risks and threats.

Have questions? Need personalised guidance? Our team is here to help! Whether you’re considering adopting a new screening programme, or want to explore how our platform can simplify your screening processes, we’re just a message away.

Reach out via email or schedule a one-on-one call with one of our experts. We’re passionate about helping you stay compliant, efficient, and ahead of the curve!

 

Q&A

Q: Does the HMRC report cover contractor data?

A: Contractor data typically falls under self-employment records. We plan to introduce this feature based on customer demand. However, self-employment records can sometimes have delays due to accountants or missing filings. Despite these challenges, they can still complement the verification process.

 

Q: Will this product integrate with major screening companies?

A: Yes! Many screening companies already use EBC Global’s vetting platform. We can integrate with any provider, and our API allows seamless integration with HRIS, ATS platforms, and background check services like DBS, Right to Work, and driving licence checks.

 

Q: How can we justify using National Insurance and address verification for employment screening?

A: Some regulated industries, like security and aviation, require address and National Insurance verification. If verification is not necessary for a specific role, this information can simply be disregarded. The HMRC data is already a key part of employment screening in many sectors, but fraud risks make it essential to source this data directly from HMRC rather than relying on candidate-supplied documents.

 

Q: How much does the EHV service cost?

A: Pricing varies by customer. Generally, it costs under £10 per verification, with discounts on a sliding scale for committed volumes and overall spend.

Q: Does the EHV check support aviation screening requirements?

A: The ID Centres at UK airports have different policies and tolerance levels, especially when it comes to requirements around references and employment verification. Generally, if the HMRC records exactly match candidate-provided information, they can be used for verification purposes.  If they don’t mirror the HMRC records, the information from the EHV can still be used to identify employers and gaps to be verified in the traditional way.

 

Q: Is the EHV fee per candidate or per job role?

A: The fee is per candidate, not per role. Whether a candidate has one job or multiple roles in five years, the cost remains the same.

 

Employment Verification Additional Resources

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