Bits: a good HMRC miles earning alternative?, Groupon / Avios deal back
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News in brief:
Is this the only alternative to HMRC’s credit card ban?
Earlier in the week I explained how HMRC is banning tax payments on personal credit cards from 13th January (click here).
For those of us who make direct PAYE, VAT, corporation tax or self-assessment payments, this is a blow. HMRC’s low 0.38% credit card made tax payments a very cheap way of printing miles.
When I wrote that article, I forgot that there was one alternative. It isn’t hugely lucrative but it may be better than nothing.
You earn 1 Tesco Clubcard point (2.4 Avios or 2.5 Virgin Flying Club miles) for every £8 you spend on the Tesco Bank debit card. You obviously need to take out a Tesco Bank current account to do this.
Tesco Bank doesn’t let you earn debit card points on financial transactions, but luckily HMRC is not treated as ‘financial’.
Whilst this clearly isn’t as lucrative as using the best Visa or MasterCard credit cards to pay your tax, remember that using debit cards is free with HMRC. 3,000 Avios for paying a £10,000 tax bill isn’t hugely generous but arguably better than nothing.
Full details of the Tesco Bank current account are here.
Groupon / Iberia deal is back – buy Avios for 1p
Iberia has brought back its occasional Groupon offer which allows you to buy Avios points at a discount to the official price, usually around 1.1p each.
I have written about the pros and cons of these offers in the past. Our last full article on this deal is here. The pricing is the same as it was then.
The cheapest and best value package of 2,000 Avios has sold out. The other packages work out at over 1.00p per Avios and are therefore not a bargain, but potentially worth it as a top up.
The Groupon site – in Spanish – is here if you want to take a look but it makes more sense to go via Iberia’s shopping portal here to earn an extra 9 per €1 spent. If it tracks – and you can’t control that – then the deal starts to look more attractive.
How to earn Avios from UK credit cards (April 2024)
As a reminder, there are various ways of earning Avios points from UK credit cards. Many cards also have generous sign-up bonuses!
In February 2022, Barclaycard launched two exciting new Barclaycard Avios Mastercard cards with a bonus of up to 25,000 Avios. You can apply here.
You qualify for the bonus on these cards even if you have a British Airways American Express card:
Barclaycard Avios Plus Mastercard
Get 25,000 Avios for signing up and an upgrade voucher at £10,000 Read our full review
Barclaycard Avios Mastercard
5,000 Avios for signing up and an upgrade voucher at £20,000 Read our full review
There are two official British Airways American Express cards with attractive sign-up bonuses:
British Airways American Express Premium Plus
25,000 Avios and the famous annual 2-4-1 voucher Read our full review
British Airways American Express
5,000 Avios for signing up and an Economy 2-4-1 voucher for spending £15,000 Read our full review
You can also get generous sign-up bonuses by applying for American Express cards which earn Membership Rewards points. These points convert at 1:1 into Avios.
American Express Preferred Rewards Gold
Your best beginner’s card – 20,000 points, FREE for a year & four airport lounge passes Read our full review
The Platinum Card from American Express
40,000 bonus points and a huge range of valuable benefits – for a fee Read our full review
Run your own business?
We recommend Capital on Tap for limited companies. You earn 1 Avios per £1 which is impressive for a Visa card, along with a sign-up bonus worth 10,500 Avios.
SPECIAL OFFER: Until 12th May 2024, the Capital on Tap Business Rewards Visa card is offering a bonus of 30,000 points, convertible into 30,000 Avios. You must have a Limited Company to apply. Click here to learn more and click here to apply.
Capital on Tap Business Rewards Visa
Huge 30,000 points bonus until 12th May 2024 Read our full review
You should also consider the British Airways Accelerating Business credit card. This is open to sole traders as well as limited companies and has a 30,000 Avios sign-up bonus.
British Airways Accelerating Business American Express
30,000 Avios sign-up bonus – plus annual bonuses of up to 30,000 Avios Read our full review
There are also generous bonuses on the two American Express Business cards, with the points converting at 1:1 into Avios. These cards are open to sole traders as well as limited companies.
American Express Business Platinum
40,000 points sign-up bonus and an annual £200 Amex Travel credit Read our full review
American Express Business Gold
20,000 points sign-up bonus and FREE for a year Read our full review
Click here to read our detailed summary of all UK credit cards which earn Avios. This includes both personal and small business cards.
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