Firms that pay introducer or broker commission calculate it from their own systems and self-bill you. They raise the commission invoice with the correct VAT treatment — which for many insurance and financial introductions is exempt — and pay you.
Key points
- The firm invoices from its own commission data.
- Correct VAT treatment, including exempt where it applies.
- You don’t invoice your own commission.
- A compliant copy each period.
Getting the VAT treatment right
Introducer commission can be exempt or standard-rated depending on the arrangement; the firm applies the correct treatment on the self-billed invoice.
This is general information, not tax advice — confirm your own position with your accountant or HMRC.