Commission

Hi all,
If a consultant/broker of antiques acts as the middle person for the buyer and seller of a transaction and receives commission for the service, am I right in thinking that only the commission is recorded as sales for the middle man?
We are talking of large transactions of say £800,000 with commission being around £25,000. If more than the commission is recorded it would probably be over the audit threshold!!
In terms of invoicing the middleman may of invoiced in his own name despite the full funds just moving between buyer and seller direct. Am I right in advising the middle man client to only have an invoice raised in their name for the commission. They are acting as the facilitator in this transaction.
Cheers!
If a consultant/broker of antiques acts as the middle person for the buyer and seller of a transaction and receives commission for the service, am I right in thinking that only the commission is recorded as sales for the middle man?
We are talking of large transactions of say £800,000 with commission being around £25,000. If more than the commission is recorded it would probably be over the audit threshold!!
In terms of invoicing the middleman may of invoiced in his own name despite the full funds just moving between buyer and seller direct. Am I right in advising the middle man client to only have an invoice raised in their name for the commission. They are acting as the facilitator in this transaction.
Cheers!
0
Comments
As an aside for VAT purposes, if he does also buy and sell for himself, the second-hand goods scheme can usually be used so VAT will only apply on the margin.