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.
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.