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RELAUNCHED: Get up to 20,000 Avios with the Capital On Tap small business Visa credit card

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EDIT:  This article is now out of date.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!

After a slightly longer than expected delay, the two Capital On Tap small business payment cards have relaunched as Visa products.

The cards are now credit cards, instead of prepaid Mastercards, with sign-up bonuses as high as the equivalent of 20,000 Avios.  This means that you can no longer use them in places which only accept debit cards, such as with HMRC.  They are, of course, accepted everywhere where Visa credit cards are welcome.

Of course, it is possible that you can link a Curve Card to the new Capital On Tap Visa. This would mean that that you could continue to pay HMRC, using Curve as an intermediary, and earn 1 Avios per £1 on your tax bill.  We won’t be sure about this until the new Visa cards start to arrive.  You can learn about how Curve Card works here – Curve will pay you £5 to try it out.

Capital on Tap review

I have re-run an updated version of our main Capital On Tap article below, which I will use as a reference article in future.

I believe that existing cardholders can continue to use their existing Mastercard for another month.  As far as I know there is no clear position on what happens if you do not want to move to the new Visa product.  I know at least one reader has received a pro-rata fee refund on his Mastercard after requesting one.

How do the Capital On Tap Visa cards work?

The Capital On Tap cards are the only way to indirectly earn Avios via a small business Visa or Mastercard credit card.

This is a great way for a sole trader or SME to rack up a large number of Avios each year.

Capital On Tap is a niche payments group which offers two small business Visa cards 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 70,000 customers across its existing ‘no rewards’ payment card and the Avios products.  These cards were their first move into the rewards market.  Intially issued as a Mastercard, they have recently relaunched as a Visa product.

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).  You need to use code headforpoints when applying.

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 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.

How do the two Capital On Tap credit 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.

Capital On Tap Capital Club review

The £99 per year ‘Capital Club’ card, pictured above, 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

Capital On Tap On Tap Club card

The £249 ‘On Tap Club’ card, pictured above, 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

Capital On Tap credit cards bonus

Do you really need a dedicated business Visa card 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 credit 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 or British Airways American Express Accelerating Business cards.  These are good products but obviously have issues over Amex acceptance, especially with small suppliers.

The Capital On Tap Visa cards are small business credit cards that can be used everywhere that Visa 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 cards have 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.

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 responsibly to ensure that any product is right for your circumstances. Recommendations are based primarily on the ability to earn miles and points. The site discusses products offered by lenders but is not a lender itself. Robert Burgess, trading as Head for Points, is regulated and authorised by the Financial Conduct Authority to act as an independent credit broker.

Comments (31)

This article is closed to new comments. Feel free to ask your question in the HfP forums.

  • Cheshire Pete says:

    I got this in September & have paid 1 VAT bill which triggered the 20k bonus & will pay my Corp Tax by the end of the month. But, I see
    Little use of keeping it now beyond December as paying my Business Taxes was the
    Biggest reason. Be nice to get a part refund on the £249 & I’ll be happy I’ve made about 30k of Avios from them for hopefully half the Fee.

  • L. Allen says:

    You say HMRC only accept debit cards? That is incorrect. They accept company credit cards, for a fee. They do not accept personal credit cards. So you would (should) be able to use your Capital on Tap Visa to pay HMRC but you need to weigh up the cost of the fee too.

    • Rob says:

      Exactly, there is a fee which massively outweighs the Avios so is not worth it.

      The Mastercard is a debit card so there is no fee.

  • christian kemp says:

    Clearly I need to pay more attention. I applied for a card about a week or so ago, on 3rd November.

    I received a Mastercard in the post with a £24k limit. I was intending to pay my Corp tax bill with it, and was assuming I would get 35k avios (20k sign on plus 15k for the spend) without having to pay a credit card fee.

    Have I got this completely wrong? If there is a 3% fee, then it is completely pointless for me.

    • Mr(s) Entitled says:

      Can you prepay before your card switches and the fee kicks in?

      • christian kemp says:

        They have taken the £249 fee already, its the 3% transaction fee I am talking about.

        I just checked the card, it is a Mastercard, and very clearly states prepaid commercial.

        So presumably I should be ok to pay the corp tax bill now?

        • Mr(s) Entitled says:

          I too meant the 3% fee.

          Glass half full, you have timed it perfectly. Pay your tax with no HMRC fee. Complain to CoT that the switch makes the card redundant, try and get a pro rata refund of 11mths.

    • Rob says:

      Why would there be a fee?

    • Paul Stevens says:

      If you have the mastercard you can still pay without the fee. I paid HMRC some personal tax a week ago and it was still working.

  • Also says:

    Pretty sure you get £10 for trying Curve now, rather than £5

  • Paul Stevens says:

    This was great whilst it lasted. Just wondering if there is anything else I can do before asking for a pro rata refund? VAT, corp and personal tax all paid off. Can I prepay anything?

    • Rob says:

      You can send a pile of cash to the Revenue. They either roll it over or repay you via bank transfer 🙂

      • AJ says:

        To overpay corp tax, do you just put in the payment reference of period you’ve been paying off when making the payment? I’ve paid off the period fully with CapitalOnTap but want to extract every last avios before this avenue gets shut down!

        • Rob says:

          Good question, not sure. I would, yes. More likely then that they repay you in cash rather than roll it over.

          I have experience of this because I am famous for doing VAT returns at the very last minute. In order to ensure avoid penalties, I always overpay the VAT (on my best guess) a couple of weeks in advance via multiple Curve payments. They then refund me the difference by BACS.

  • Tim says:

    A word of caution. I paid my personal tax bill using my COT card. I was then due a refund which was sent to the COT card. I then paid the exact same amount in self assessment for next years paye liability. Thought to mention so folk don’t mix up there company and personal taxes.

  • Christian says:

    Rob can you update once this is confirmed to work with Curve card? (Or not)

    I found these lot absolutely rubbish to deal with in February and I closed the account down before it ever started (after approving and sending cards they just left them locked for days so I gave up)

    May take another look if the new version earning 1 Avios per £ works with HMRC via Curve.
    No Curve. No deal.

    • Rob says:

      Will do. I don’t think anyone has received one yet – it only switched for applications received from last Thursday.

      • Andrew porwol says:

        Just received my cot card and started using it. Very simple application process and it’s been working fine.

  • iain says:

    there’s also the “starter club”, 1 avio per £5 but free, no sign up bonus but a no brainer. My brand new Ltd with £14k turnover got this no problem. credit limit is enough for me, helps with cashflow for 0 cost.

This article is closed to new comments. Feel free to ask your question in the HfP forums.

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