Declaring earnings on comission? Self Employed

henrygregory

Hi, I work as a self employed worker. There are some parts of my job I can't do, so I have some companies I get in touch with, they deal directly with my customer and have offered me a percentage of what they charge as an incentive for me to pick them, so I would consider this a commission.

How do I record this as a self employed trader?
Do I just create an invoice and call it a referral fee and then record their payment to me as payment for the invoice?

I don't expect that this would happen all that often, but I would like to make sure I record things correctly.
Any help would be great.

InsideInsurance

You can invoice them or they could simply send you paperwork confirming the monies due to you and in brief what it was for (referral fee/ commission/ profit share etc)

henrygregory

InsideInsurance wrote: »

You can invoice them or they could simply send you paperwork confirming the monies due to you and in brief what it was for (referral fee/ commission/ profit share etc)

Thanks for your help. I plan to record all of my charges on an excel sheet, so I will just add an extra column for any charges which are not for the usual work I do so I can quickly see which was for comission.

InsideInsurance

The main challenge with commission is ensuring you know what they sold and for how much plus any nuances of how the commission is calculated. For example assuming this is service rather than product based, then is commission payable against their billing for any travel or other expenses or just the professional fees? For products a similarity would be if its payable against P&P or just the product itself?