Q. I am about to start my own business, and I can see little point at this stage in having an accountant, tax adviser, & business consultant. They all cost money.   A. In reality [& we would say this] more businesses fail to plan than plan to fail. The initial set up costs are kept to a minimum, & often result in assisting a business to succeed. The clients who succeed are able to afford further advice, & continue their success. Very few people have an MBA, & running a business requires training.   Q. I have been told that I can pay less tax by trading via a limited company.   A. The Treasury have taken steps to ensure that no significant differences arise long term. There are "timing" differences on paying the tax, more paperwork with a limited company etc. Our advice is to take detailed advice in your particular circumstances to decide the best trading method for your circumstances.   Q. How long should I retain the records used to prepare my tax return.   A. The minimum period you should retain all your records is 22 months after the end of the tax year in question. e.g. for the year ended 5.4.2005 you MUST retain records until at least 5.2.2007. Ideally you should retain the records until 5.2.2012. You MUST obtain documentary evidence for all your income, & expenses e.g. if you let out a property you must keep invoices, mortgage statements etc. The PENALTY can be up to £3000, which is a serious disadvantage.   Q. I have some income that nobody will be aware of, and I have not had any tax return OR simply the TAXMAN has not asked me to complete a tax return. My view is "thank God" for that.   A. VERY INCORRECT! The responsibility under Self Assessment is that you MUST notify all income, and preferably claim all genuine business expenses. Failure to do so is very expensive in money terms plus the unnecessary stress of dealing with an enquiry. With professional advice you can legally take steps to mitigate your tax liabilities.   Q. I always leave my tax return to the last minute, and anyway the penalty for being late is only £100.   A. This is a very reckless attitude for two reasons. We have no time to consider carefully any further "mitigation" methods available, and you have no time to save the sums demanded by the Revenue. More importantly is the fact that any late filing is likely to result in an automatic enquiry. This as mentioned above is very stressful, & expensive in [not tax deductible] professional fees!   Q. I cannot pay my tax on the due dates of 31st January, & 31st July. I accept that I will be charged interest, but I find that acceptable.   A. There are two points to be aware of. The Revenue do not consider themselves as a bank, and vigorously pursue the tax due. They believe that anybody who does not follow the rules on payment is a candidate for an enquiry. Worse there is an automatic 5% of the outstanding tax penalties, if you exceed 1 month after the due date.