Mortgage Broker & Financial Adviser

Solid foundations for your own tax as a regulated financial professional.

Allowable Expenses

• FCA Fees & Compliance — FCA regulatory fees, compliance consultancy, and professional regulatory costs — all deductible.
• Professional Indemnity Insurance — Required by FCA for regulated mortgage and financial advisory firms — fully deductible.
• CeMAP / Diploma Fees — Chartered Insurance Institute qualifications, CeMAP, and CPD required for FCA authorisation.
• Sourcing Software — Trigold, L&G SmarterBuy, 360 Dot Net, and other mortgage sourcing and CRM platforms.
• Network Fees — If you operate as an appointed representative, fees paid to your network (e.g. Sesame, Openwork) are deductible.
• Travel to Clients — Mileage or public transport to meet clients at their homes or offices for fact-finds.

Tax Tips

• Procuration fees (lender commission) are your core income — they are trading income even when received quarterly or with a delay.
• Network fees, compliance fees, and software costs can be substantial — all are deductible and help reduce your taxable profit significantly.
• FCA fees change annually — check the FCA fee calculator and include them as a deductible business cost.
• If you are directly authorised, keep records of all FCA submissions and compliance costs — these demonstrate legitimate business expenses.

Frequently Asked Questions

Is procuration (proc fee) income taxable when received?

Yes. Proc fees received from lenders are taxable trading income in the year received, even if the underlying mortgage was arranged in a previous tax year. Trail commission is taxable in each year it is received.

Are FCA regulatory fees deductible?

Yes. FCA periodic fees, application fees, and compliance consultancy costs are all deductible as regulatory costs of operating a regulated financial business.

What expenses does network membership cover?

Network membership fees (if you are an Appointed Representative of a network) are fully deductible. This typically covers compliance support, PI insurance, and access to lender panels. Deduct the full fee from your trading income.

Is trail commission income taxable?

Yes. Trail commission received from lenders (recurring income based on the loan book) is taxable trading income in each year it is received. Even if it arrives passively without any active work in that period, it is still your income and must be declared on Self Assessment.