Adventures In Micro-Business: From chasing debts to crime prevention

Russell Smith answers your queries

Q. My business invoiced for a piece of work over six months ago but still hasn't been paid, despite lots of phone calls and reminders. Is there a simple process I can use without the need for a solicitor?

Q. My business invoiced for a piece of work over six months ago but still hasn't been paid, despite lots of phone calls and reminders. Is there a simple process I can use without the need for a solicitor?

A. It can be tempting to pursue bad debts to "prove a point" but, if the invoice is for a small amount, you must judge whether it's really in your interest to spend money on debt recovery. Her Majesty's Court Service offers a web-based mechanism for debt recovery called "Money Claim Online" ( www.moneyclaim.gov.uk/csmco/index.jsp). The process is straightforward and there is a useful "Customer Help Desk" function from the website. Making a claim costs £120 and everything can be done online. For further information, the Business Link website ( www.businesslink.gov.uk) has a useful guide to debt recovery and they also offer a Business Debtline (08001 976026).

Q. Could you recommend a reliable source of advice about crime prevention for my business premises?

A. A comprehensive Guide To Business Security document can be obtained as a free download from the Yorkshire Forward website ( www.yorkshire-forward.com). Your local police will offer a number of services, too. One police service, perhaps not well known, is that of Architectural Liaison Officers (ALOs). If you are at the planning stage for new or refurbished buildings then an ALO can offer advice and information to help design crime out of the building. Contact your local police authority.

Q. I've only started my business recently and would like some information and advice about VAT. I don't have internet access at work yet - is there somewhere I can telephone?

A. No problem: the National Advice Service offered by HM Customs and Excise (0845 0109 000) is staffed between 8am and 8pm; they can help with any questions you may have. Once you've got internet access at work, you may want to look into their eVAT service which enables you to submit VAT returns electronically.

Q. I run a small business providing seeds for old-fashioned plants. Is it true that I need to buy a government licence before I can send seeds abroad?

A. The Department for Environment, Food and Rural Affairs (Defra) oversees import and export of plant seeds in order to prevent the spread of plant pests and diseases. Their website ( www.defra.gov.uk) has a lot of information and you can download guidance booklets and relevant forms. However, it isn't simply a matter of "buying" a licence. For export to countries within the EU, you may require a "plant passport" while for countries outside of the EU you will need help from their Plant Health and Seeds Inspectorate - see the Defra website to find your nearest inspector.

Q. My uncle has agreed to make a loan to help me with my business. If I pay him interest on the loan, can I claim that as a business expense?

A. The good news is that you may deduct interest on a loan when calculating profit but the bad news is that your uncle will need to declare interest received as taxable income. If your uncle doesn't charge interest then there are no tax implications for you or him. Make sure that you have a written agreement, even though this is a family member, since this will help avoid any misunderstandings.