Types of Income and Employment Verification Documents

Even in todays’ digital age, there are certain physical documents we all need in order to verify our income and employment for certain tasks such as applying for a mortgage, buying a car or applying for a new job

During life’s big moments employees need to provide income and employment verification documents to third parties. Since these documents can significantly impact an employees’ future, accuracy and validity are crucial.

Types of income verification and employment verification documents depend on the purpose of the verification as well as what an organisation allows employers and HR departments to share with third parties. Given that these documents can determine the outcome of life’s big moments for employees, it is essential for all parties involved to include accurate and valid information.

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What are income and employment verification documents?

Income and employment verification documents are used to confirm an employee’s status, employment dates, income information, and other details.

Reasons verification documents are requested

Income and employment verification is needed more often than you may think;

Accessing new credit or changing a credit agreement requires proof of income to assess affordability and ensure responsible lending.
Employment verification as part of a background check process for a new role.
New tenancy agreements when renting a home, must verify a tenant can afford their deposit, ongoing rental payments, maintenance, and other associated costs.
Mortgage applications must confirm consistent employment and sufficient income to cover existing commitments and new monthly payments.

Common verification documents in the UK

Types of employment verification documents

Employment verification documents are often required in situations such as:

Loan and credit applications: To assess financial stability.
Hiring processes: To confirm a candidate’s employment history, verify their experience and qualifications, and minimise the risk of false representation.

In the UK, common documents used to confirm income and employment history include:

P45 and P60 Forms

Provided by employers to detail employment periods and tax.

Payslips

Evidence of ongoing or past employment.

Employment contracts or offers

Terms of employment and role.

Reference letters

Confirmation from prior employers of role and potentially performance.

HM Revenue and Customs (HMRC) Employment History

Five-year employment history.

Types of income verification documents

Payslips

Typically last three to six months

Bank statements

Typically last three to six months

Employment contracts

Confirmation letter

Tax documents

P60 tax year summary or P45 provided upon leaving a job

Self-employment evidence

Self-assessment tax returns, profit and loss statements

Benefits statements

Universal Credit statements or other benefit confirmation

Rental income statements

Rental agreements or rent receipts

Investment income statements

Dividend and interest statements

Importance of providing verification documents

Whether they are buying a home, applying for a job, or seeking financial aid or assistance, employees need to present employment verification and income verification documents. In some situations, it is necessary to gather more than one.

It is important for employers and HR departments to comply with regulations during this process. At the same time, both employers and employees need to make sure they fill out employment verification and income verification documents completely and honestly in order to avoid penalties for making false disclosures. Completing this responsibly adds time and complexity to the journey.

We can help

Streamline your application process and verify income, employment and expenditure digitally, in seconds.

Our Work Report service provides a quick, simple and secure way for employees to share their verified employment and income information with the organisations they choose, directly from an employer’s payroll database, in minutes, with no paper payslips or physical bank statements to manually collect.

Accessing employment information direct from source confirms the employment status of a customer, their employer and tenure as well as their income, eliminating the need for physical documents and reducing the risk of fraud.

You can make more accurate affordability decisions, while providing a better customer experience.