Company A owns a Freehold commercial investment property.
Company B is the Management company for Company A only whose function is to charge and collect rents and service charges. Rents are remitted to Company A and service charges are retained with Company B to operate the building expenses.
Company C provides day to day property management services to a number of clients, including Company B. Company C issues a quarterly invoice to Company B for services rendered.
All three Companies share the same Director, although the Director is a shareholder of Company C only.
Company C is setup to pay its Director via PAYE and Dividends.
Is it material that all three Companies share the same Director and on that basis are there any implications for Company C to receive a management fee from Company B for services rendered without IR35 issues with respect to Company B?
Essentially could HMRC insist that Company B should have PAYE setup to pay the Director instead of contracting out day to day management to Company C?