Hopefully a very easy question for some..
A new client (Ltd co) started business as a Landlord Agency - that is what they called themselves. The company rents properties from owners (mainly properties that were not well maintained), fix them up and make it look smart before subletting (as agreed with the landlords) to tenants for a higher rent. As far as the owners are concerned they have rented it to my client who will pay them rent regardless of whether there are any tenants. The company makes its profit on the difference between the higher rent paid by the ultimate tenants and the rent paid to the property owners.
2 questions really:-
1. Would rent receivable from the ultimate tenants be termed as Turnover of the company and rent payable to owners shown as direct costs?
2. Would this be classified as an trading or an investment business for tax purposes?