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HMRC internal manual

Employment Income Manual

Tax treatment of insurance agents: general: arrangement of guidance

A comprehensive Statement of Practice (SP4/97) was issued on 27 November 1997. SP4/97 entirely replaces an earlier statement, SP5/95, which should no longer be used or quoted. The statement deals, amongst other things, with the taxation of insurance commissions received by employees and others. The part of the Statement of Practice relating to employees’ liabilities is reproduced at EIM64605.

The guidance relating to the taxation of insurance agents who are employees is arranged asfollows:

EIM64605 Statement of Practice SP4/97
EIM64610 Trading Income cases
EIM64615 Commission received by agents who are employees
EIM64620 Commission and discounts available to the general public
EIM64625 Invested commission
EIM64630 Discounted premiums or price
EIM64635 Cashbacks received by employees
EIM64640 Expenses: full-time agents
EIM64645 Expenses
EIM64650 Claims for capital allowances on computers