Can HMRC request information about my current or past employees?

July 15, 2022

A business owner recently got a letter from HMRC, inquiring about an employee who had worked for her in the past. The letter stated that HMRC wishes to know about the hours of work, and his days of leave during his employment.

Should she let HMRC know this data?

If you are an employer, the you should not be hesitant to disclose information about the people who work for you, such as their nationality, their gender or date of birth and residential address, as per HMRC.

Inquiries for Data

HMRC can only ask around for your data to a third party, if it is worried about your status pertaining to tax, in the near future, and now.

It may exercise this prerogative so as to question your previous and current workers about your tax status, or even to your business partners and clients.

However, please be assured that HMRC cannot and will not ask for any details about you, randomly and out of the blue.

An information enquiry shall only be legitimate if it has been agreed upon by a concerned person, who is either an employee, a business partner, or a client.

A tax Tribunal shall have to authorise the request for such information, and only then shall HMRC proceed with it. 

However, be alert about this one fact. Any demand for any certain type of details which fall beyond the scope of regular payroll information shall only be legitimate if it has been provided with a written request which has been verified by a Tribunal for tax. Nevertheless, intimate data, for example, health-related information shall not be given. You are at ease to deny a request lest it includes unnecessary exertion to comply with.