Thanks to everyone for your help. I have decided to go with TSOHost. Their response to my questions has been right on the ball and precise too.
In case there is anyone reading this thread the summary is, that its all to do with money (isn't it always). You either bill your customers direct yourself or let the system handle it for you as explained in TSOHost response, copied below:
"However to clarify, the WHMCS system is not something we provide, so perhaps it was a confusing example. But if you wanted to use it (and it is available licensed from them) then you could do so and integrate it into the cPanel/WHM reseller hosting plan, and that is what a lot of hosting resellers do. WHM on the other hand, is just the reseller control panel which allows you to control the accounts, (just to avoid the confusion between the two)"
Hope this helps in some way.