A letting agency (Company A) arranges the maintenance of landlords’ properties. So for example Company A will arrange for a plumber to fix a leaking tap at a landlord's property. The plumber will invoice the letting agency which in turn will pass on the cost to the landlord, by deducting that invoice from the rents collected.
As the maintenance work has been increasing year on year, the director of Company A has now set up a separate property maintenance company B, which will undertake the maintenance work from now on. So now company B will hire in and pay the tradesmen for various maintenance jobs to landlord’s properties. Company B will then apply a mark-up and invoice company A, which will pass on the cost to the landlord as before.
So will either or both Company A and Company B have to register for CIS?
Neither company will be involved in site work or large projects. they will only ever be maintaining the properties for landlords when needed. Readers views would be much appreciated, thank you.