Software Solutions Partners (SSP) has cut the cost of software development and transactional charges made to users by obtaining VAT exemption for the services.
After what was described as "complicated" negotiations with the Inland Revenue the software producer succeeded in making savings it estimates will amount to £1m per year across the channel.
SSP chief executive David Rasche said: "Through a review we started about a year ago we identified that we might be able to change our VAT status.
"This will benefit all our customers, 2,000 broker sites and the insurers who trade electronically with them."
