Companies that pay commission-only reps and distributors calculate the commission themselves, so they self-bill you: they raise the commission invoice, apply VAT only if you’re VAT-registered, and pay. You don’t invoice your own commission.
Key points
- The company invoices from its own sales data.
- VAT only where you’re VAT-registered.
- No invoicing your own commission.
- A numbered copy each period.
Commission worked out for you
Because the company holds the sales figures, it invoices and pays your commission accurately each period.
This is general information, not tax advice — confirm your own position with your accountant or HMRC.