GOOD DEAL: Get 5,000 to 20,000 Avios via the sign-up bonus on the two Capital On Tap Mastercards for small businesses

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For the first time, you can now indirectly earn Avios via a small business Mastercard.

This is a great way for a sole trader or SME to rack up a large number of Avios each year, especially as HMRC accepts these cards for tax payments with no fee.

Capital On Tap is a niche payments group which offers two small business Mastercards which indirectly earn Avios – and we have negotiated a higher sign up bonus for our readers!

The Capital On Tap cards are aimed at SMEs 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.  These cards are their first move into the rewards market.  We have been writing about the cards for a few months and feedback from readers who have applied has been very positive, especially over their quick response to any queries or questions.

Capital On Tap is 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 full details on their website here.  Read on first, however, to learn more about the additional bonus for HFP readers.

Capital On Tap offers two cards for SMEs which indirectly earn Avios

The company has launched two products.  One is aimed at lower spenders and one is aimed at those who can put substantial sums through the card.

I will look at the two cards in detail later but in summary:

Card 1 – ‘Capital Club’

There is a sign-up bonus which converts to 5,000 Avios, with an on-going earnings rate which converts to 0.5 Avios per £1.  The annual fee is £99 (tax deductible).

Card 2 – ‘On Tap Club’

There is a sign-up bonus which converts to 20,000 Avios, with an on-going earnings rate which converts to 1 Avios per £1.  The annual fee is £249 (tax deductible).

Both sign-up bonuses require you to spend £5,000 within three months.  The bonus arrives at the end of your fourth billing period, irrespective of how quickly you spend the £5,000.

Another positive point is that Avios transfers from Capital On Tap are INSTANTANEOUS.  Log in to Capital On Tap, request a transfer of some or all of your available Capital On Tap points to Avios, log in to your British Airways Executive Club account and they will be there!  Capital On Tap is the only UK Avios partner to offer instantaneous transfers.

And an extra bonus for Head for Points readers!

Head for Points readers get an extra sign up bonus equivalent to 250 Avios with ‘Capital Club’ (total equivalent to 5,250 Avios) and 500 Avios with ‘On Tap Club’ (total equivalent to 20,500 Avios).

Earn Avios with On Tap Club Mastercard

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 of both cards – and apply – on their website here.  Read on first, however.

Earn Avios with On Tap Club Mastercard

Who can apply?

The Capital On Tap cards are 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 £24,000 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, these cards are not credit cards.  They are 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 summary of the two Capital On Tap products.

Whilst I quoted the earning rates above in terms of Avios, you are actually awarded ‘Capital On Tap points’.  These can be converted into Avios or exchanged for cash.

Confusingly, the transfer rate between Capital On Tap points and Avios points differs between the two cards.

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 converts into 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 £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 converts to 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

Earn Avios with Capital on Tap

Do you really need a dedicated business Mastercard for your company?

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.

Which of the two Capital On Tap cards should I get?

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 tax 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 (£99 card) or 20,000 Avios (£249 card) respectively.

Using the special headforpoints promo code increases your bonus by 500 Capital On Tap points so the sign-up bonus converts into 5,250 Avios or 20,500 Avios respectively.

Day to day you are collecting the equivalent of 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.

For Year 1, I think there is a very strong case for getting the £249 ‘On Tap Club’ card.  The sign-up bonus converts to 20,000 Avios – which offsets most of the after-tax fee – and then you are picking up the equivalent of a lucrative 1 Avios per £1 after that.

For Year 2+, you need to look at what you are spending.  If you value an Avios point at 1p, the crossover point at which the £249 ‘On Tap Club’ card earning the equivalent of 1 Avios per £1 is the best choice is roughly £30,000.  If your annual spend is under £30,000 you may want to trade down to the £99 ‘Capital Club’ card and earn the equivalent of 0.5 Avios per £1.

HMRC accepts Capital On Tap!

Here is one good reason to get a Capital On Tap 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.  (You need to select ‘personal debit card’ when paying.)

This means that you can earn indirectly Avios on all of your PAYE, VAT, corporation tax and indeed personal tax payments.  At the equivalent of 1 Avios per £1 on the ‘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.

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Comments

  1. Signed up for this card two months ago. The credit limit I have been given is £9800. This is very low for my business use. I used the card and paid off the balance owing straight away but after having a few payments refused I have discovered that I can only charge 2 x £9800 per month to my card regardless of whether I pay the balance of immediately. My statement says that I have £9800 credit whereas in fact I have nil. Capital on Tap says it will review my credit limit in a few months. I have found this disappointing.

    • Memesweeper says:

      Hold out Helen! I hit the ceiling in similar circumstances. They’ve just significantly raised my limits.

    • L Allen says:

      Oh! I haven’t had that issue yet but will keep an eye out. I know have that huge a spending profile so maybe I’ve just been lucky.

    • Rooster says:

      I was told by the Live Chat I could pay off unto 10 times obviously the information they gave me was incorrect…

    • Delmonteboy says:

      Helen. I was given £12,000 limit to start. After about 3 months it has gone up to £24k. I am going to call in another 3 month when they have had sone track record of me and am going to push for the £50k. It’s worth giving them a call IMHO

  2. Memesweeper says:

    I’d be cautious about paying a personal tax bill with a business card – speak to your accountant. I guess it might be OK if immediately offset against directors loan account.

    I’d also personally not take cashback from a business card. This could be a benefit in kind, or be deemed the company’s cashback to keep – again check with your accountant. Avios earnings are not a taxable benefit so I’m feeling confident that HMRC will be unfussed by that.

    Would love Rob to share some well researched advice on either of the above questions.

    • Mr(s) Entitled says:

      “or be deemed the company’s cashback to keep” Surely the only thing it can be is the company’s cash to keep? Still better to earn and pay tax on any distribution than not earn at all.

    • Dan Brown says:

      My accountant was happy for me to log the cashback to the company as interest earned, so incur 19% corporation tax, then if I took the increased profit a 7.5% dividend tax. Works out about 0.75% cashback if I take it personally, which is still better than nothing.

      My accountant has also always been ok the business paying personal charges provided they go on the directors loan account.

  3. Got this following the article a couple of months ago to collect Avios on business expenses. Google however will not accept this for Adwords payments as its a prepaid card. To get round this this, just link it to a Curve card.

  4. I took out the On Tap Club card a few months ago. So far so good. I was very impressed when I transferred some points from the card to my BAEC account that they arrived instantly.

  5. How long is the headforpoints offer on till? I want to time this with my next VAT bill and Corporation tax bill.
    Also is there an ATM withdrawal limit like Curve and the account be paid of from any other account, personal or business?

  6. L Allen says:

    I have one, had it for a good six months or more now. Customer service is quick and responsive. The website and app are simple and easy to use. They have an integration with Zero, handy if that’s your accounting software. I am hoping they do an integration with Sage One soon!

    I would also add: if the limit they give you isn’t enough to pay your HMRC bills, you can repay the balance by debit card and it is almost instantly applied to your account and available funds are immediately restored. You just have to make two or more payments instead of one for large bills (HMRC don’t care!).

  7. Rooster says:

    Much prefer the Amex business card.

  8. Tom Murray says:

    We applied for COT following the initial HFP article – our ‘plan’ started 30/4. Have not yet seen the 20k points showing as credited or pending, nor the HFP referral bonus.
    We like COT, it has a good online portal and so far we’ve not had an issue paying some lumpy bills with it. I agree that the restriction on asking for a raised limit is a pain e.g. ours is £20k but circa £10k of that is spent and our coming VAT bill is nearly £30k. You can’t part pay a VAT bill by card so that’s nigh on 30k’s worth of Avios gone begging 🙁 – it’s also difficult for COT to know what our anticipated max spend is going to be; chicken and egg – if you can’t use it for the spend, they don’t know you want to. Seems to us a better way of collecting Avios. We too have Amex BAPP but COT seems ideal for merchant purchase not accepting Amex and ‘debit card’ transactions provoding you still hit 241

    • Tom, you CAN part-pay a VAT bill by card. I do it. You have misread the rules.

      The rules say ‘you can only pay your taxes with one payment card’. This means it must be the SAME payment card for all your individual payments. It does NOT mean that you must pay it in one installment.

      • Memesweeper says:

        +1 that’s how I pay my VAT

        • +2 I’ve been paying my VAT (and other taxes) on my Curve card previously, and so have been having to make multiple payments over several days because of the low daily limit on that card. Has never been an issue for me.

      • Tom Murray says:

        If you’re unable to pay your VAT bill in full by card, you should use another payment method like a bank transfer.

        Rob, I’ve cut and pasted this from HMRC. Is this guidance then advisory rather than mandatory?

        Tom

        • You can split your VAT bill across multiple payments/days if necessary. I did this on Sunday and Tuesday this week. So take HMRC info as guidance.

          I wasn’t aware what Rob said earlier that you have to use the same card. I’ve never tried to use different cards for VAT, but I have been able to for other taxes.

        • You pay it IN FULL, with your card, IN MULTIPLE TRANSACTIONS 🙂

          Although my current one was paid part card, part BACS because I paid the last chunk too late. They don’t care. Just don’t use multiple cards or they do come for you.

  9. Applied today, looks like I have been given the normal free card, maybe I selected wrong one.

    Anybody had the no fee one then upgraded to the rewards one after signing?

    • The Savage Squirrel says:

      Don’t worry; you can join the “Club” (reward scheme) any time once you have your own account on the portal.

  10. Does anyone know if/how you can redeem the avios to different executive club memberships?

    Thbaks in advance!

  11. Do you think that, as long as it’s treated as a business debit card, we would be able to pay our Amex Business Platinum bill with it?

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