Commission-only sales in the UK: how to structure it properly
Commission-only is a legitimate and common UK arrangement, but only when the contractor is genuinely self-employed and the commercial terms are written down. This guide covers what to get right.
Last reviewed 2026
Employment status is the thing to get right
A commission-only salesperson is normally engaged as a self-employed contractor: they invoice you, control how the work is done, and handle their own tax. If the day-to-day reality looks like employment — fixed hours, close direction, no ability to work elsewhere — status can be challenged and employment rights including National Minimum Wage may apply.
This guide is general information, not legal advice. Take your own advice on status for your specific arrangement.
What the agreement must state
Most disputes trace back to a missing clause rather than bad faith.
- Commission percentage and what it is calculated on
- Payment trigger — cash collected is standard in high-ticket
- Payment timing after collection
- Clawback treatment if a client refunds
- Lead and account ownership
- Notice, confidentiality and post-termination commission on pipeline
Paying contractors cleanly
Contractor payments run through PrimeClosers are invoiced, approved, collected, held and settled with a full audit trail, and a 4% Platform & Payment Fee plus VAT applies. That trail is what produces the contractor's Verified Earnings record and your Verified Payer record.
Questions people ask
- Is commission-only legal in the UK?
- Yes, where the salesperson is genuinely self-employed. If the arrangement functions as employment, minimum wage and employment rights can apply regardless of what the contract says.
- Should commission be paid on signed contracts or collected cash?
- Cash collected, in almost all high-ticket cases. It aligns the closer's incentive with your actual cash flow and removes the risk of paying out on deals that never fund.