A: A supply of insurance referral services is exempt from VAT provided the supplier is acting in an intermediary capacity and is providing an insurance related service, which includes introductory services, but does not include merely advertising an insurance product.
In your case, as you are recommending the insurance company’s product, are returning the application forms and are paid per policy taken up, this would be sufficient to exempt the fees you earn from the insurer. Chapters 8 and 9 of Notice 701/36 goes in to more detail on this (Group 2, Schedule 9 of the VAT Act 1994).
These publications from Markel Tax were correct at the time of going to press and should be considered as principles-based guidance only. To check current validity, call the Markel Tax helpline. ICAEW (as distributor) disclaims all liability for any errors or omissions.
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