Maximise your Avios, air miles and hotel points

NEW: Get a 20,000 Avios sign-up bonus with Capital on Tap’s new small business Mastercard

Links on Head for Points may pay us an affiliate commission. A list of partners is here.

EDIT:  This article is now out of date.  Capital On Tap has relaunched with just one Avios card, Business Rewards, which is better than both of the cards described below.  Click here to read our review of Capital On Tap Business Rewards.  We still have a higher sign-up bonus for our readers!

Capital on Tap has launched a second small business Mastercard, the On Tap Club card, which earns Avios – and we have negotiated a higher sign up bonus for our readers!

This card offers a generous 20,000 Avios when you take it out, with an extra 500 Avios for you as a Head for Points reader.

Back in February we looked at the new Capital Club small business Mastercard.  This was the answer for all of the people who have emailed me in search of a good travel rewards card for their business purchases.

You can find out more about Capital Club here.  The card has a £99 annual fee (tax deductible as a business expense) and earns 0.5 Avios per £1 spent.  There is a sign-up bonus of 5,000 Avios if you spend £5,000 within three months.  As this Capital Club article explains, you also get 250 extra Avios as a HFP reader!

Capital on Tap has launched the ‘On Tap Club’ card for bigger spenders

There is now a 2nd way to earn Avios with a small business Mastercard via Capital on Tap.

And, as with the cheaper Capital Club card, we negotiated a special extra sign-up bonus for Head for Points readers if you use our promo code when you apply!

This is the card (which looks the same as their other card!):

Earn Avios with On Tap Club Mastercard

It’s called the On Tap Club card.

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 39.9% 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 On Tap Club card offer?

The On Tap 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.  The Avios cards are their first move into the rewards market.

This is what the new On Tap Club Card offers your business:

20,000 Capital on Tap points (converts to 20,000 Avios) for signing up and spending £5,000 within 3 months

1 Capital on Tap point for every £1 you spend (converts to 1 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 20 free supplementary cards for your staff

The card has an annual fee of £249.  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 for the On Tap Club card, you will receive an additional 500 Capital on Tap points.  This is worth an additional 500 Avios.

The site will still show 20,000 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 On Tap 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, On Tap 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 do the two Capital on Tap cards compare?

Here is a quick summary of the two Capital on Tap products.  It is slightly confusing because they do not have the same points conversion rate.

The £99 per year Capital Club card offers:

10,000 Capital on Tap points for signing up and spending £5,000 within three months

1 Capital on Tap point per £1 spent

A 2:1 conversion rate into Avios so the sign-up bonus is worth 5,000 Avios and the on-going earning rate is 0.5 Avios per £1

15 free supplementary cards for your staff

No FX fees and no ATM fees 

500 bonus points (250 Avios) if you use code headforpoints when applying

The new £249 On Tap Club card offers:

20,000 Capital on Tap points for signing up and spending £5,000 within three months

1 Capital on Tap point per £1 spent

A 1:1 conversion rate into Avios so the sign-up bonus is worth 20,000 Avios and the on-going earning rate is 1 Avios per £1

20 free supplementary cards for your staff

No FX fees and no ATM fees 

500 bonus points (500 Avios) if you use code headforpoints when applying

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 Gold Business or American Express Platinum Business.  These are good products but obviously have issues over Amex acceptance, especially with small suppliers.

The Capital on Tap Mastercards are small business cards 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 or £249 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 which converts into 5,000 Avios or 20,000 Avios respectively.

(Use the special headforpoints promo code and that increases to 5,250 Avios or 20,500 Avios respectively.)

Day to day you are collecting 0.5 Avios per £1 spent (£99 card) or 1 Avios per £1 spent (£249 card).  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 15-20 free supplementary cards.

HMRC accepts Capital on Tap!

Here is one good reason to get the card.  HMRC accepts Capital on Tap cards to make tax payments with no fees.  This is because HMRC treats it as a personal debit card.

This means that you can earn Avios on all of your PAYE, VAT, corporation tax and indeed personal tax payments.  At 1 Avios per £1 on the new On Tap Club card this is a valuable extra benefit.

But don’t forget …..

Capital on Tap points can be converted into cashback as well as Avios.  You can choose to take 1p of cash instead of 1 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.

Remember to use our Capital on Tap promo code when you apply!

If the Capital on Tap Capital Club or On Tap Club cards sound 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.

Comments (87)

  • Kevin says:

    How long does the card take to come after applying? Trying to work out if I have time to get it for a VAT bill due the end of this month.

    • Steve says:

      They claim within four working days in the FAQs, and I think ours actually came in three when we applied last month.

  • Alex says:

    Our company VAT bills are usually in the £60,000 o £100,000 range per quarter. It would be great if we could put this through to gain Avios points but it looks like these payments will be too high for this card or curve. Are they any other options available to gain some kind of return while paying for the VAT or yearly tax bill or would capital one be open to increasing limits with immediate repayment?

    Thanks

    • Rob says:

      Ask them?

    • Memesweeper says:

      I pay *some* VAT every week to better manage cards and limits.

    • Lee says:

      You might be able to pay using the capital card to your maximum allowed, then repay it immediately and go again, that’s what I have done with a large tax bill, and in fact I asked Capital to increase my limit which they did within a day of the account opening.

  • Richard says:

    I think it needs to be made clear that this is NOT a credit card, rather it is a business loan with a Mastercard debit card attached so you can access the loan capital.

    To make it look and feel more like a credit card, you do get the standard interest-free period of up to 56 days.

    According to the website, repayments are made only by way of direct debit – 10% of your utilised loan or £250, whichever is the greater. I can see no mention of being able to repay in full each month using a debit card/bank transfer, for example, though perhaps existing users can correct me on this.

    I applied, then e-mailed them to cancel once I realised that this isn’t a traditional credit card… They were quick to reply and confirm cancellation of the application.

    • james says:

      Looks like a dodgy recommendation then

      • Rob says:

        Because there is no S75 etc protection on business credit cards, there is no difference is there? A credit card is defacto an unsecured loan which you draw down up to your credit limit and repay with no interest within 56 days or else pay interest. And so is this.

        • Joseph Heenan says:

          I agree with Rob, can’t see the difference. The website has an option to set the d/debit payments to be the full amount, it was very easy to setup like that.

        • Charlieface says:

          According to the FCA, in reference to S75:
          an ‘individual’ includes sole traders, small partnerships and unincorporated businesses, as well as ordinary consumers

    • Late Arrival says:

      “According to the website, repayments are made only by way of direct debit – 10% of your utilised loan or £250, whichever is the greater. I can see no mention of being able to repay in full each month using a debit card/bank transfer, for example, though perhaps existing users can correct me on this.”

      This is not correct.

      I have the option to pay the minimum amount, full balance or specify the amount I want. I part paid my VAT yesterday and maxed out the credit limit. Chose to pay some of the balance off. After a day waiting for their system to catch up I paid the rest of the VAT. Re: DD repayments the account gives me 3 options to choose from: Full Balance, Minimum, Fixed amount.

      • czechoslovakia says:

        +1
        You have the option to pay the debt off by debit card – any given amount, any given time.
        You can select to pay off the full amount by DD automatically each month also

    • Peter K says:

      It amazes me how people come to a conclusion then tell everyone as though it is gospel truth, without checking all the facts.

  • Brian says:

    Have people been successful applying with a relatively tiny business income? Are people applying as sole traders with a very small (as I do) or no non-PAYE income?

    • Lee says:

      I’m a sole trader and no problems

    • Joseph Heenan says:

      The article says there’s a £24,000 minimum turnover requirement so it’s sounding like you’d struggle to meet that? No idea how strictly they enforce it though.

  • lauren says:

    If you cancel within they year do you get a pro rata refund? and can you only put business expenses on it or can you use it for personal use too?

  • Lee says:

    I applied for this card when first promoted on HFP and it’s brilliant. Very easy to use, I paid a large tax bill and as the initial limit was insufficient, I called them and they increased it the same day. It was not enough to cover my total tax bill so I simply paid the max allowed then cleared the balance using my business debit card and went again until the full tax bill was paid. Easy! The other real positive for me, has been the service and personal attention, feels like a small family run business as you have names of people you deal with so that has been very refreshing.

    • James says:

      I initially had the free version and then upgraded to the premium version for £199. I can’t fault the customer services it’s absolutely brilliant.

    • Gbit says:

      Agreed. Have had the card for a few months now and very impressed with the functionality and customer service. So refreshing to get quick and personal service. They are introducing Xero integration soon. It’s currently in Beta testing which they asked my to participate in.

      • James says:

        CoT now connects to Xero!

        • Joseph Heenan says:

          The Xero integration is still in testing apparently – I tried it and no luck (fails over at the very first step); CoT support are investigating… Still, it seems like it is close which is awesome.

  • Tim Day says:

    Does anyone know the minimum time for when one would be eligible for a second sign up bonus if previously held the card?

    • Rob says:

      If you are paying the fee I doubt they mind. If you cancelled the £99 card I really doubt they would have issues giving you the new £249 one.

  • Memesweeper says:

    I’d value £ 200 for real time QuickBooks integration. CSV manually is a pain …