NEW: Earn Avios with a small business Mastercard – and a special extra sign-up bonus for HFP readers!

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At last!  After many years of having Head for Points readers email me in search of a good travel rewards payment card to use for their business purchases, we finally have something.

You can now earn Avios with a small business Mastercard.  And this is it:

Capital on Tap Capital Club earn Avios

The Capital Club card, from Capital on Tap.

Interest rate information:  Your interest rate is based on your business profile and can be as low as 9.9% APR.  The standard interest rate for marketing purposes is 39.4% APR.

You can find full details on their website here.  Read on first, however, because there is a special higher sign up bonus for HFP readers.

What does the Capital Club card offer?

The Capital Club card is aimed at small businesses and sole traders.  Whilst you may not have heard of Capital on Tap, it already has 50,000 customers for its existing ‘no rewards’ payment card.  This is their first move into the rewards market.

This is what the card offers your business:

10,000 Capital on Tap points (converts to 5,000 Avios) for signing up and spending £5,000 within 3 months

1 Capital on Tap point for every £1 you spend (converts to 0.5 Avios)

No foreign exchange fees when spending overseas

No ATM fees if withdrawing cash on the card

Up to 56 days interest free credit on purchases (minimum monthly repayment is the greater of 10% of balance or £250)

Up to 15 free supplementary cards for your staff

The card has an annual fee of £99.  This is obviously tax deductible as a business expense.

The maximum credit limit on offer is £50,000.

And an extra bonus for Head for Points readers!

If you use promo code headforpoints when signing up, you will receive an additional 500 Capital on Tap points.  This is worth an additional 250 Avios.

The site will still show 10,000 Capital on Tap points as your bonus but the extra 500 will be added separately.  If there are any problems, let me know and I can quickly chase it up.

Capital on Tap Capital Club Avios card

Who can apply?

The Capital Club card is aimed at sole traders as well as small businesses.  The company appears to be flexible in who they accept:

if you are a UK limited company or limited partnership with turnover of £24,000+ then you should be eligible

if you are a VAT registered sole trader then you should be eligible. 

if you are a sole trader under the VAT threshold but above the £24,000 turnover threshold then applications are looked at on a case by case basis – if you have a functioning website and are clearly in business then I am told you should be eligible

Applicants must not have a CCJ against themselves or their business in the past 12 months.

Whilst it doesn’t make any day to day difference in how you use the card, Capital Club is not a credit card.  It is structured as a prepaid Mastercard which is funded by Capital on Tap.  As far as I can see this doesn’t make any difference to your legal rights, as Section 75 protection does not apply to business credit cards.  In the event of any disputes over purchases, you request a Mastercard chargeback.

How does the Capital on Tap Capital Club card compare?

Some sole traders, including myself, use a personal credit card for their business expenses.  A lot of self employed people – or their accountants – are not happy doing this, however, and it is clearly not sensible to give personal credit cards to your staff.  You need a dedicated business payment card in these circumstances.

Until now, if you wanted to earn rewards from a small business payment card you were reliant on American Express Business Gold or American Express Business Platinum.  These are good products but obviously have issues over Amex acceptance, especially with small suppliers.

The Capital on Tap Capital Club Mastercard is a small business card that can be used everywhere that Mastercard is accepted.

You need to look at the maths based on what you spend, including how much you spend in foreign currencies (the card has no FX fees).  The £99 annual fee is a deductible expense so the net cost to you will be lower.  In Year 1 you are getting a sign-up bonus of 10,000 Capital on Tap points, which is worth 5,000 Avios.

(Use the special headforpoints promo code and that increases to 10,500 points, worth 5,250 Avios.)

Day to day you are collecting 0.5 Avios (1 Capital on Tap point) per £1 spent.  If you and your staff have a high level of business expenditure then this could work out very nicely for you.  Remember that you can have up to 15 free supplementary cards.

As far as I know, there is no other Visa or Mastercard payment card aimed at small businesses which offers decent travel rewards.

But don’t forget …..

Capital on Tap points can be converted into cashback as well as Avios.  As 2 points gets you 1 Avios or 1p cashback, you are ‘paying’ 1p per point for your Avios.

If you don’t value Avios at more than 1p (and in most scenarios you can get more than 1p for them as this article shows) then take your Capital on Tap points as cashback instead.

To apply

If the Capital on Tap Capital Club card sounds interesting for your business, you can find out more and apply on their website here.

Remember to add promo code headforpoints to receive the extra 500 points as a sign-up bonus.

Disclaimer: Head for Points is a journalistic website. Nothing here should be construed as financial advice, and it is your own responsibility to ensure that any product is right for your circumstances. Recommendations are based primarily on the ability to earn miles and points and do not consider interest rates, service levels or any impact on your credit history. By recommending credit cards on this site, I am – technically – acting as a credit broker. Robert Burgess, trading as Head for Points, is regulated and authorised by the Financial Conduct Authority to act as a credit broker.

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Comments

  1. “If you don’t value Avios at more than 1p (and in most scenarios you can get more than 1p for them as this article shows) then take your Capital on Tap points as cashback instead.”

    You mean “if you can’t otherwise pick up Avios for 1p or less…”. It’s replacement cost that’s relevant here.

    • Shoestring says:

      Depends how many you need. It’s easy to pick up Avios @0.8p & some @(say) 0.5p & some @free – but these opportunities are often very limited in terms of time available and number available.

    • Although as a business card, any cash taken out should count as revenue, so would presumably be taxable…

      • Good point. But only profit is taxable. So I guess it’s 1 avios for personal use or 1p towards business travel.

      • Christian says:

        I checked with them – cash withdrawals don’t earn the capital points (to turn into Avios) and you start to pay interest on the withdrawal immediately (pretty standard) but there is no access fee on top for using the cash machine.

    • That is true.

  2. Rob can you chase for me Curve Rewards? It has been “temporarily unavailable” for at least 4 weeks now.

  3. Memesweeper says:

    Great to see a new entrant in the rewards and SMe cards market. Thanks for highlighting Rob.

    Two possible snags:

    pre-paid card = some acceptance problems? I’m assuming no way to link this to Curve for that reason.

    Cash back *or* points? If the cash back would otherwise accrue to the business then HMRC/my accountant might see any Avios as a taxable perk valued at 1p each.

    Incidentally, reversing that logic, if the cash back otherwise accrues to my one-man-band company then I’m buying Avios at 1p each before company or personal tax. And if the Avios benefit isn’t taxable that’s a no-brainer. 🙂

    Applying today.

    • That was my thought – cash may be taxable, Avios are not.

      • The cashback would indeed be taxable as it would be considered income.

        Acceptance will be an issue e.g. I’ve never had any prepaid cards work with Uber.

        • Cashback is treated as a rebate for tax purposes, so you would knock it off a purchase.

          Same net effect for a business but makes a difference for a person as not seen as income.

  4. I have a Barclaycard business visa – £99 per year per card and gives 0.5% cashback, business travel insurance and lounge visits

  5. Andrew (@andrewseftel) says:

    I’m a bit fuzzy on the exact boundary, but section 75 protection can cover some business transactions. A sole trader using a consumer credit card likely would be.

    • On a personal card, yes – although the card company could dispute whether it was a personal purchase.

      • Andrew (@andrewseftel) says:

        NB though that many ‘business’ credit cards (e.g. Barclaycard) ones are issued under the consumer credit act.

      • Sole traders and small partnerships (no more than three partners) fall within the definition of consumer under the Consumer Credit Act and must therefore be issued with a regulated credit agreement and have S75 protection where it applies.

  6. TescoTease says:

    Is this a prepaid credit card or pre paid debit card? If the former then HMRC wouldn’t accept, if the latter I would expect the same level of acceptance as Curve.

    Rob- any clarifications?

    • Doesn’t matter because it is a Business card with full interchange fees so not worth using with HMRC.

      • TescoTease says:

        It makes a big difference as to If it’s a credit or debit card. There are organisations (other than HMRC) that accept debit card paymentes and some that accept credit and debit card payments.

        My curve card is a commercial
        Pre paid debit card. HMRC accepts it fine without charges. Is this card the same but without the secondary card in the background?

  7. Mr(s) Entitled says:

    Rob – are you swapping your Amex Plat for this?

    • No. Why would I? 1 point per £1 AND more importantly I can write off the Plat fee.

      But I am cool about using personal cards for business. I know that many people are not.

      And anyone working for us always insist on using their own cards and recharging me, oddly 🙂

      • Many accountants are not, too – they’ll whack the annual fee on your Director’s Loan account and slug you with S455 tax.

      • Accountant at work asked recently why I kept using personal cards for business expenses when I have a company credit card. Too many cards to carry…………

      • I was given a company card … “as it doesn’t seem fair I have to use my own!!!) Tried to educate my MD but he just doesn’t get it.

        • Or he gets it perfectly and would rather he receive those points

        • Lady London says:

          As far as I’m concerned the only type of company credit card I’d be prepared to have is one where the company settles the monthly card bill directly even if I have to list why each expense.

          Had too many corporate cards where the company isn’t settling expenses quickly enough so I have to pay the bill off before I can get a claim paid.

          Also watch out check t’s and c’s and suggest you don’t take the card if they make you jointly liable. I had a friend whose employer folded and his colleagues were pursued by the card company to settle card bills the company was no longer able to reimburse them, as well as losing their job. No company accountant is going to continue asking why you won’t take a corporate card if you quote the presence of that clause as the reason for your concern. Most of them have it I think.

      • I use personal credit cards for business expenses. My accountant is fine with it. The cards I use for business expenses I never put any personal purchases through and always ensure they are zero balance at the end of the year.

  8. John Matrix says:

    OT: IC Bora Bora appears to have zero reward night availability…all 2019 and beyond. Is this typical…?!

    • Yes. I was monitoring it for a while as I wanted to go, but then changed my plans. They probably have one or two rooms and as soon as they are released they are taken. I think people book one night at the time.

      • Christian says:

        Yes, you can never get rooms there. I looked on and off for a year and then found a flyertalk post all about other people’s experiences (the same). Basically, there’s a golden minute in the middle of the night once a week where they release a few rooms at a time and even then you’re unlikely to get all you want in the one property. In the end I came to the view that life was simply too short.

    • luckyjim says:

      Out of curiosity, try searching for one adult. I found recently that IHG reward rooms were available in Paris for a single adult but the exact same rooms were not available for a couple. What they would do about if you had a second person in the room with you I don’t know.

    • John Matrix says:

      thanks all. Sounds like it’s misleading to sell this as a redemption option at all. Shame.

  9. Good to see a new entrant but slightly underwhelming offer. Santander Business Credit Card offers 1% cash back with £30 annual fee.

    • Mr(s) Entitled says:

      I’ve got a Santander business account for my Ltd. I’ve not looked into a corporate card but now you’ve mentioned this I don’t have to. Application underway, Thanks.

      • any good? free? proper online banking? recommend them?

        I’m using their Cater Allen – pretty woeful/basic

        • ha, just compared them

          Santander – not free (but probably decent)
          Cater Allen – free – but a basic offering

          I’ll stick with Cater Allen for now – I never pay anyone for banking – they earn enough from our deposits

        • We got 18 months free with Santander for ltd co as we are 123 acct holders.

        • Mr(s) Entitled says:

          I’ve been impressed with Santander. It’s a low bar of high street banks but I’ve found them to be very approachable and willing to assist. That said, I’ve not asked for anything they may say no to (ie debt).

          As per Genghis’s comment, mine came with 18mths free banking and access to a branch network was important to me.

        • 18 months free is a nice sweetener, but 18 months soon pass, then it’s £7.50 p/m?

          and the branch network is now disappearing…

          https://www.bbc.co.uk/news/business-46972632 (and this is only the start)

        • Mr(s) Entitled says:

          It will be a while before my branch disappears and a small fee doesnt greatly concern me provided the service is there. But if events change then so will my mind.

  10. Hi Rob
    I have the ‘basic’ curve card. It has daily spend limits. My tax will be more than 4000 pounds. Can I pay in parts (using the same reference number) on hmrc every day to make up the total so can cash in on rewards?

    • illumintus says:

      It has been confirmed multiple times here in comments that yes, multiple partial payments are fine

      • Ali Malik says:

        thank you and apologies

        • Christian says:

          Yes, having done this, multiples are absolutely fine. They reserve the right to decline multiples above some unspecified number, but I’ve never hit that.

        • luckyjim says:

          Why are you apologising? It’s a perfectly reasonable question and there is no way of checking if it has been asked before.

          You could also ask Curve to up your limit explaining the reason. HMRC payments are a legitimate use of the card.

    • Yes 4k is no problem just do 2k per day and there won’t be an issue

  11. Joseph Heenan says:

    Definitely happy to see a new entrant to the market here, but they’ve not made it attractive enough for me to sign up our 8 person company up. We’d need either a way to export transactions in a standard format (csv/qif/etc) or an automatic bank feed into Xero.

    I’d also need to be sure that they clearly indicate which person made which transaction.

    • Christian says:

      I’m trying this with two of us to start with so I’ll see what the reporting is like in practice. As a business provider, I’m sure they’d listen to sensible business-focussed requests.

  12. Was getting interested ahead of this article being published, but I think I’ll stick with my Santander card. £30 fee, 1% cashback and fee free foreign use.

    This card doesn’t measure up at all.

    https://www.santander.co.uk/uk/business/borrowing-finance/credit-cards

    • Can you use this card with Curve (i.e to pay HMRC)

      • Yes (if you mean the Santander card), that’s what I did last year

      • Jon Martin says:

        Note that the rules of personal and business credit cards are different. Business credit cards can and will be charged a significant fee for HMRC payments.

        Still that said, 1% back in cash and a smaller fee with Santander blows this offering out of the water for sole traders. OK different tax treatment of cash vs Avios, but not if you choose to spend the cash on extra business travel…

        • That’s where Curve comes in handy, as they don’t charge to use that. All depends.if they actually manage to stay afloat after the Amex fiasco mind you

        • 1% cashback is mega for any non amex card

  13. I didn’t think there’s an issue using a personal card as a sole trader. Agree it’s completely different for ltd companies

  14. Does anyone know if there would be a fee to use this card to deposit Euros into a Trabsferwise Borderless account? Would it be classed as a cash advance?

  15. Just made an application via the link and used the promo code…response came back approved with a healthy credit limit BUT no mention of avios/rewards/annual fee anywhere…

    • It will all work through. Any problems, drop me a note and I’ll chase them. Office is only 5 minutes from ours in the worse case scenario!

  16. Almost on topic: Amex Gold Business Card…
    I already have an Amex Preferred Rewards Gold Card (i.e. personal). Can I ‘refer myself’ from a Gold personal to a Gold business card?
    On the phone, Amex has already advised I can earn a sign-up bonus on the new business card even though I already hold the personal one. Thanks

  17. does anyone know if this card has a Xero feed available? No point having to manually import statements

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