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Roger Cowdrey of the Thames Business Advice Centre tackles your questions about running a business - and scroll down for an answer to your tax queries from John Whiting.

Ken in West Sussex has retired early with a small occupational pension. He's now self-employed, doing 14-20 hours a week gardening.

He has registered with the Inland Revenue and has a Class 2 self-employed National Insurance contributions certificate of exception (because his earnings are low in winter).

What can he claim for on his tax return to help reduce his bill? Would public liability insurance or wear and tear and travel costs count? He works alone, with no business premises or name.

You are allowed to charge all reasonable business expenses against your earnings.

This can include business travel, marketing, insurances, telephone and stationery used exclusively by the business.

Entertaining is not considered a reasonable business expense! The Inland Revenue business support units will advise if in doubt.

Michael Davis from Kent writes: "My colleague and I have just come to the end of an office rental term and are not continuing the lease because we're moving.

"To our horror, the landlords sent round an inspector in our absence and invoiced us for �20,000 for 'dilapidations'. It's a small office, we've only been in for three years and it didn't start in the highest quality.

"But they're charging us hundreds of pounds for the removal of paint marks on skirting boards and structural repairs to the roof (nothing to do with us!). We can't afford to fight them in court - do we have any other options?"

As with anything in business, always make sure you know what you are signing.

Make sure that you and the landlord agree a schedule of condition at the start and try to support it with photographs.

Ensure you understand your obligations for repair under the lease.

As a general rule small businesses should try to negotiate an upper limit for repairs and go for an internal rather than external repairing lease.

In this case it is essential to seek legal advice and not to assume that the big boys always win.

Steve Jepp says: "I am currently setting up my own lifestyle business and would appreciate any information with regards to funding opportunities available."

The easiest place to start is a website called www.j4b.co.uk, which lists grants.

Also try your local Business Link because they'll be able to do searches for grants and loans.

And have a look at the Working Lunch guide to business funding.

John Partridge writes: "Do I have to have a bank account to run a one-man business? I currently have a building society account and potential customers across three continents."

If you try to run a business from a personal account and the banks find out, they will probably apply business charges .

It's best to keep them separate. And there can be a period of free banking to help you get your business started.

Jean Morris saw last week's Lunch Lesson on promotion and would like to know more about press releases? Who should she send them to and what should the content be?

It's basically something that tells your story to a newspaper, TV or radio or even a local magazine.

It's not meant to be an advert - it should be reasonably newsworthy.

It could be that you've opened an unusual shop or raised money for charity.

Write it succinctly, make it easy to read and add some quotes from yourself about the business.

Think how it would appear in a newspaper and couch it in those terms - get the news right at the top.

And don't forget to add your contact details in case anyone wants to follow the story up.

Jim Wigmore from Devon says a lot of businesses which sell to older people often only give out website addresses and telephone number.

But older people are least likely to have web access and often have hearing difficulties and are therefore unable to use a phone. Do you agree that companies are being silly?

Businesses must communicate in a way their customers can respond to.

Not everyone is on the internet or can use a phone easily, so always give them options about how to contact you.

Paul Miner is owed a few thousand pounds in corporation tax by the Revenue (for the year ending 2002) and has not been paid.

"Although not a big amount to them, this could force me out of business within weeks," he says. "I've been told I can't take them to the small claims court but if the roles were reversed, I'd face penalties.

"Is my case unusual? What options are available for me to recover this debt and can I claim for loss of interest during the time it was owed?"

As with all matters in business, communication is best done face to face.

Firstly, seek a meeting with the tax office dealing with the corporation tax claim. If you are dissatisfied then ask to see a customer service manager to register a complaint.

If you are still unhappy then use the services of the Adjudicator.

As far as interest is concerned, the Inland Revenue will apply interest from the date that the payment came due.

Donna Paddon from London is setting up a small/medium-sized business and requires a short-term loan of about �10,000 to get it off the ground.

She owns property worth �270,000 which she'd rather not use as collateral but is willing to if necessary. Where's the best place to go for a loan this size and what's the likelihood of getting it?

For loans of this size, bank borrowing in some form is still likely to be the most generally available.

There may be alternative routes for loans from organisations such as the Prince's Trust or through local initiatives and your local Business Link.

You could try a site such as www.j4b.co.uk or look at the Working Lunch guide to business funding.

As far as the bank loan is concerned, they will usually want some form of security.

Also recognise that if the business appears to have insufficient confidence to put what is effectively its own money into the business to secure the loan, it may well raise doubts in the lender's mind about the strength of the loan proposition.

Andy Hodgson asks: "Why doesn't the government help small businesses with office and warehouse space?

"We've owned ours for six years but can't grow bigger because the storage sector is too expensive. If cheap places were available, surely it would increase employment and generate more tax and National Insurance?"

There are a number of initiatives across the country operated by local authorities and others that provide reasonably priced workspace.

In addition, there are both regional and national government initiatives that assist in funding more of these projects.

Most local authorities will publish a regular property directory and some may provide initial assistance for relocation into their area.

However, creation of jobs is only valid if they can be maintained. One has to be careful that one does not end up moving the unemployment costs from one place to another.

Presumably expansion would assist the owners of the business as well, and therefore a business plan needs to be prepared to identify whether the plan is robust enough to support some form of lending rather than grant.

Again, the local Business Link would be a useful place to discuss all of these issues.

Matt Walkden sells things over the internet but is charged �200 and 1.5% of each sale to process credit cards.

He thinks they have him over a barrel. What does the fee actually pay for?

This question appears to assume that the internet is free and that if you cannot see it on a piece of paper then there is no cost.

Clearly that is not the case.

On the subject of the processing charge by the bank, the payment received is in principle no different to having a cheque paid in.

The transaction still has to be processed through the clearing system in the same way.

One can debate the cost of bank charges generally, but there is certainly a cost associated with processing.

The same is true of the issuing of the internet trading number.

I would expect there to be a cost in validating through credit checks etc that the number should be issued.

There will certainly be an administration cost. As with all things the answer is to shop around.

John Eddison from Lancashire wants to know how to go about copyrighting a name for a company?

I assume that this is a sole trader and they wish to register the name.

Registering of a limited company is automatic at Companies House.

Otherwise there is an organisation called the Business Names Register with a web address of www.anewbusiness.co.uk.

John Whiting, from PricewaterhouseCoopers has answered three of your questions that relate to tax.

Simon in Cornwall says: "I'm just about to take over a fast food takeaway with a projected turnover of �80,000 and net profit of �17,000.
"For the first couple of years I intend to plough all the profits back into the company and with the help of my family, could live below my personal tax allowance of �4,600.
"Should I run the business as a sole trader or form a limited company and where would I find the best advice on this?"

John Albury asks: "A limited company can now make �10,000 profit before paying any tax but a self-employed person running a small business gets no such allowance, which appears very unfair and disadvantageous.
"Is it a ploy to entice people to become limited and what are the real disadvantages of doing this?"

Jackie Craig says: "A friend and I are planning to start a small catering business and would like to know the benefits of forming a company rather than a partnership.

"Are there tax advantages to being a company? Is corporation tax at a lower rate than income tax and if yes, does that mean the company will benefit from greater returns but then if we want to draw money out, we won't be worse off?"

Anyone starting in business has to face the question sooner or later of whether they want to be a sole trader (or partnership) or a company. There are big tax differences, as well as the administrative and regulatory issues, which mean that this is not a decision to take lightly.

Frankly, it's worth investing in a bit of professional advice just to make sure you are setting things up properly, even if once you are up and rolling you manage all things yourself.

If you want to operate through a company, then clearly that has to be set up. Effectively a company is a separate person - it has to have its constitution, records etc. and separate books and bank accounts will have to be kept.

It's not something you can set up in retrospect! And indeed like the old advert for a puppy, a company is forever (or at least until it is liquidated) - these things have to be kept going.

Although if at some stage you decide to operate on your own and cease trading through the company, that is certainly possible.

There are many practical reasons for operating through a company or indeed for staying as a sole trader. A limited company does in principle bring you limited liability (though many proprietors have to give personal guarantees).

As a sole trader, you are open to any claims. A company makes it easier to bring others in as shareholders - on the other hand being a sole trader gives the chance of offering a partnership.

One of the biggest reasons for going one way or the other is taxation. It is possible to make significant tax savings by operating as a company.

If, for example, you have modest profits of around �15,000, operating as a sole trader would mean a combined tax and National Insurance bill of around �2,700.

This can be all but eliminated by operating through a company - pay yourself a salary of just under �5,000, leave �10,000 profits in the company which attracts no Corporation Tax, and this can then be paid out by way of dividend with no further tax to pay (assuming you are not into the higher tax bracket).

That is seductive for many and has certainly led to a lot of small businesses being incorporated since the Chancellor brought in this nil rate income tax band.

You do have to watch that you will not be caught by the 'IR35' legislation which tries to tax you as if you were an employee of someone.

Another factor to keep an eye on is the minimum wage legislation, but if you are simply a director of the company rather than having a written or employment contract then the DTI and Inland Revenue confirm that you will not be required to pay yourself the national minimum wage.

But this does point to the fact that companies do find themselves with more regulation than individuals.

As will be apparent, whether to go the corporate route or stick as a sole trader is something to be thought about carefully - and to reiterate, it's worth taking some professional advice from a properly qualified tax adviser to help you.

I might point out that it's a subject I lecture on regularly and that lecture takes an hour or so - but I don't think you want to hear that now!

The opinions expressed are Roger's and John's, not the programme's. The answers are not intended to be definitive and should be used for guidance only. Always seek professional advice for your own particular situation.