Q I've run into so many problems leasing new premises that I've hardly had time to get stocked up for Christmas, and on top of that the wretched new-fangled till has stopped working and an inspector has been round to ensure that I'm following local health and safety requirements. Please tell me, does everyone in business feel like giving up and running away from time to time?

A I'm not sure you intended this as a serious question to answer here, but as you're not the first to ask I'll come straight to the point and suggest that if you didn't scream and feel like making for the next train home you would be a very remarkable person indeed. In fact, scientists in Canada who have studied problems of stress in the retail and other environments say that a good shout can have a very beneficial affect when things don't go right. And another group in America has observed that running a busy trading activity with holidays on the horizon can sometimes be as stressful a job as chairing a multi-million pound global enterprise.

Symptoms of stress do have to be watched, however. Problems of money and lack of it can upset a business partnership and lead to feelings of being unable to cope. What's more, what BUPA experts term "the stress factor" looks set to increase further with the seven-day, 24 hour working environment, more owner-managed companies and an increasing amount of complicated EU regulations.

The 'you need a holiday' remarks are often justified and it really means slow down, take a grip on yourself, give yourself and others a chance. But as many of us find, going into some open space and having a jolly good shout can be almost as effective as taking a break to watch other poor souls at work.

Santa's little helpers

Q I have plans for engaging some local youngsters on shop work, unpacking and the like, over the school holidays. What are the basic employment rules on this and how much should they be paid?

A Before making any promises of work, ask your local council for a note of the local rules and regulations. These tend to vary from district to district, but there is one restriction throughout - any child you take on must be aged 13 or over. Most councils permit children of 15 and over to be employed for up to 8 hours a day, subject to a maximum of 35 hours a week. Children under 15 can work for up to 25 hours a week.

You can pay the children what you like, but do bear in mind that 16 and 17 year-olds must be paid at least £3 per hour under the recently extended National Minimum Wage agreement.

Contract of employment

Q Recently I left my job with a large national firm to open a small enterprise in my home town at the start of the New Year. My contract with the firm contains clauses preventing me from either setting up in competition to them, from approaching clients, and from disclosing confidential information. I am happy to comply with these conditions, but despite this the firm has threatened to sue me the moment I start trading. Former work colleagues have suggested that I go and ahead and see what happens. Would this be an option?

A An option, yes, but a foolhardy one to take, both financially and personally. It could well be that if the matter went to court the restraints put on you might be declared unreasonable and therefore invalid, but you would have some hefty legal costs to meet plus a great deal of worry. The Law Society suggests that you or your solicitor should try to negotiate a compromise solution. If nothing comes of this then if you are taken to court you will at least be able to show that you've tried.

Christmas Day trading

Q A large shop not far from mine is putting it around that it plans to keep open 365 days a year, including Christmas Day. I don't want to, but if necessary can I do the same and ask my staff to work those days too?

A There is no need to worry. Legislation just enacted prohibits the opening of large shops on Christmas Day. Smaller shops are not affected, so if you wish to open you can do so. Staff attendance will be voluntary, with premium pay and time off for religious observance strictly a matter for negotiation.

VAT on bundled supplies

Q We are attracting business from customers who want boxes of items to be sent by post, either to themselves or as Christmas and New Year gifts to other people. As some of these are mixed supplies of items liable to VAT at different and sometimes zero rates, how do we work out the tax?

A The Vatman calls these 'bundled supplies'. The basic rule is that you work out the total VAT liability in proportion to the value of each component - no VAT on a plant for example but full rate on a kitchen item. If you make a separate charge for packaging, this will always attract VAT. Drawing a pension Q I'll celebrate my 60th birthday on boxing day - my husband starts drawing his own State pension then - and despite protests we will be selling this family business in order to buy a villa in Spain. My pension will be important, so can I find out what will it be and whether I will have problems getting it overseas,

A Get a personal forecast of what is due by contacting the Pension Service on 0845 3000168, www.thepensionerservice.gov.uk. Ask also for a copy of Pensions for Women - Your Guide (PM6). There should be no problem drawing what money is due. Arrange for it to be paid direct into your bank account (and please note that although at present women draw this at age 60, it will change to 65 over the 10 years period to 2020).

Converting the loft

Q The attic above our High Street shop has been empty for years and I'd like to top up a declining income by turning it into a couple of flats to rent. Does the Government hand out grants for this sort of thing?

A There will be no grants in your stocking, but you should be able to claim a capital allowance enabling you to deduct the cost of construction from your taxable profits. This will cover money spent on building dividing walls and fitting a new kitchen, but not bedding, carpets and so on. If an extension is necessary to gain access to the flats, you can claim back the cost of this work too. For more details phone the Inland Revenue Self Assessment Helpline tel 0845 9000 444.

Employed or self-employed?

Q I am taking on a neighbour's son on a part-time basis and am trying to decide whether to treat him as employed or self-employed. The latter seems better, as it will save me the hassle of PAYE and tax deductions, but as an employee he will be more under my control. What are the pros and cons to be considered here?

A There are no pros and cons, for from what you say the lad will be in your employ and must be treated as such. He can only be regarded as self-employed if he is working for himself and has a final say in how the business is run, risks his own money and, among much else, is free to fire other people on his own terms and then pay them from his own pocket.

Smile please

Q The layout of my shop is poorly designed and I am not always able to keep an eye on all customers. Cameras and mirrors are at present out of the question and because of this I frequently 'loose' small items. Is there a well-tried and inexpensive theft deterrent that would suit my small pocket?

A People with sticky fingers are most unlikely to steal if there is a chance of them being watched. Greet all entrants with a smile and a word or two. Friendly eye-to-eye contacts won't empty your pocket and could even enhance your trade.

Registering a name

Q My partner and I are in doubt about whether the business name we have adopted is already in use elsewhere. How can we find out?

A The National Business Register provides free start-up information and name searches. The web site is www.anewbusiness.co.uk.