Accounting & Tax Q&A: Online Business Mastermind
The COCO Women Founders Online Business Mastermind in February brought together ambitious founders for a focused, insight-led session on accounting & tax.
Our monthly 1 hour online masterminds are designed to help women in business learn, share and grow.
This month, our special expert guest was Polina Dimitrova, a fellow COCO member from our Thame networking group and a trusted accounting professional. Polina shared her real-world experience on managing business expenses, tax essentials and simple systems to help founders keep on top of their finances. The session was full of practical advice and honest guidance — perfect for anyone who’s ever wondered whether a particular cost counts as a business expense or just feels like one.
Whether you joined live or are catching this overview afterward, here’s a breakdown of the key insights from our Q&A session – in everyday language that makes sense for small business owners.
Q: Can I claim travel for business?
A: Yes, if the trip is for work.
You can usually claim:
- Train tickets
- Tube travel
- Travel to meetings, events or clients
If it’s business-related, it’s normally allowed.
Q: Do I claim fuel or mileage for my car?
A: If it’s your personal car, claim mileage, not fuel.
Keep a note of:
- Date
- Where you went
- Miles travelled
You claim a set rate per mile. Once you use this method for a car, stick with it.
Q: Can I claim hotel stays?
A: Only if the stay is mainly for business.
Allowed:
- Conferences
- Training
- Meetings that require an overnight stay
Not allowed:
-
A holiday where you “did a bit of work”
The main reason for the trip must be business.
Q: I work from home. Can I claim anything?
A: Yes.
There’s a simple flat yearly amount you can claim for working from home. This is often easier than trying to work out a percentage of your bills.
Trying to claim part of your home as “business only” can cause problems later if you sell your house, so it’s safer to treat your workspace as shared.
Q: How much can I earn before registering as self-employed?
A: You can earn up to £1,000 per tax year from small side income before you must register.
If you go over that, you need to set yourself up properly.
Q: What counts as a business expense?
A: A simple rule:
Would you buy it if you didn’t have the business?
If the answer is no, it’s likely a business expense.
Examples:
- Materials
- Software subscriptions
- Travel
- Work equipment
Clothing is only allowed if it’s branded or protective (not normal everyday clothes).
Q: Do I need bookkeeping every month?
A: Not always.
If you only have a few transactions, you may only need help quarterly or at year-end. The goal is to keep costs sensible while staying organised.
Q: When should I do my tax return?
A: As early as possible.
Doing it early means:
- You know what you owe
- You have time to prepare
- Less stress
Leaving it to the last minute causes panic.
Q: When should I change from sole trader to limited company?
A: It depends on your goals.
A limited company can suit you if you:
- Plan to grow
- Want to hire people
- Want to build a bigger business
If you’re happy small and simple, staying a sole trader is often easier and cheaper.
Q: How do dividends work in a limited company?
A: You can only pay dividends if your company has made a profit.
You should check your numbers first. If you take money out without profit, it’s treated differently and may need to be repaid or taxed another way.
Q: Can I take money from the company as a short-term loan?
A: Yes, but you usually need to repay it within a set time to avoid extra tax.
Q: Can I run payroll myself as a director?
A: Yes, if it’s just you. Software makes it manageable. It becomes more complex once you have employees.
Q: What is “benefit in kind”?
A: This is when your company pays for something personal, like:
- Gym membership
- Private health cover
- Some cars
You can do it, but you still pay tax on the value — it just works in a different way.
Q: How do Trivial Benefits work for limited companies?
A: Trivial benefits are tax-free, non-cash gifts (up to £50 each) that limited companies can provide to employees and directors without reporting to HMRC, saving on tax and National Insurance. For directors, the total is capped at £300 per tax year, they cannot be contractual or performance-based rewards, and must not be cash.
Q: What accounting software should I use?
A: For small businesses, FreeAgent is often recommended (and can be free with some banks). Xero and QuickBooks are also good. The key is choosing something that connects well with your bank.
Q: What is Making Tax Digital (MTD) and do I need accounting software for it?
A: Making Tax Digital is the government’s way of ensuring everyone reports their income and expenses more accurately throughout the year. Under MTD, you report your financial data every three months, which helps you see how much tax you’ll owe before the year-end. Your final self-assessment tax return must match the figures you submitted quarterly.
You don’t necessarily need accounting software to comply but if you use spreadsheets for record-keeping, you must use bridging software to connect them to the HMRC system for submission. The key requirement is keeping digital records – this can be a spreadsheet plus copies of your receipts. The goal is proper bookkeeping year-round, so everything adds up when it comes time to submit your final return.
Final Thoughts…
The main message from the session was simple:
Do things properly, keep good records, and ask questions early.
Understanding your expenses and staying on top of your finances doesn’t just keep you compliant – it helps your business stay healthy and stress levels low.
If you’re unsure about anything, it’s always better to check than guess.
Our monthly online business mastermind hours are a great way to get all your questions answered, bounce ideas off fellow women led business owners and feel inspired.
See our Events page for upcoming online masterminds and meet-up events happening in Amersham, Marlow, Beaconsfield & Thame.
About Polina Dimitrova
Best-Assistant Accounting
Polina’s mission is simple: helping your business thrive. She’s passionate about doing everything properly and on time, with a big focus on early submissions. This gives you more time to plan for any tax bills, instead of leaving it until later in the year.
Polina works with a limited number of clients, so she’s always available to give you the personal attention that bigger firms often can’t. If a question falls outside her expertise, she has access to top chartered tax advisors and HMRC specialists to get you the best advice, even if there’s an investigation.
She also uses the best accounting and payroll software – yes, it’s an investment, but it ensures everything runs smoothly and accurately, unlike cheaper alternatives that can fall short.
If you need guidance, Polina is always happy to help – your business growth and compliance are her top priorities.
