Free vs paid Capital On Tap card

[Bloxorus]

I feel like I must be missing something because I don’t understand why anyone would get the paid version of this card?

It seems like the only incremental benefits of the paid version are the sign up fee (which essentially negates the annual fee in the first year rather than providing a ‘benefit’ per se), and the ability to convert points to Avios. So after the first year I would be paying GBP99 per year for the privilege of buying Avios at a rate of 1p (not even a good rate seeing as Avios can now be purchased cheaper than this via BA directly)?

I have a fairly high business spend but I already have millions of AMEX MR points so lack of Avios is not an issue for me. The reason why I want this card is for the 0% surcharge on FX spending, which is also offered on the free card. So is there any reason at all for me to get the paid version? Just want to make sure I understand fully before I apply.

Thanks

[Matt]

I think you’re largely correct. I signed up to the paid version because the sign up bonus was bigger than the fee, but downgraded after a year.

The advantage is that you have to pay corporation tax in the cashback but the avios are personal and tax free, so you would gain there. I think you’d need to be spending a lot of money on the card to make it worthwhile.

[Bloxorus]

Matt wrote:

I think you’re largely correct. I signed up to the paid version because the sign up bonus was bigger than the fee, but downgraded after a year.

The advantage is that you have to pay corporation tax in the cashback but the avios are personal and tax free, so you would gain there. I think you’d need to be spending a lot of money on the card to make it worthwhile.

Understood, thanks!

[Ash]

@bloxorus agree about the CoT choice – I do recall they had a 100,000 avios sign up at one time.

With regard to Amex MR reaching millions, how so? I’m finding acceptance of Amex in b2b somewhat limited…hence looking at CoT.

[Bloxorus]

Ash wrote:

@bloxorus agree about the CoT choice – I do recall they had a 100,000 avios sign up at one time.

With regard to Amex MR reaching millions, how so? I’m finding acceptance of Amex in b2b somewhat limited…hence looking at CoT.

Ah, shame the sign up bonus is so low now then…

Regarding my Amex, I am in a fairly unique situation where due to the nature of the business my supplier accepts Amex. I also spend a fair amount on ads with Google / Facebook.

[Richard Peters]

Depends on your business: I’m in property and most builders merchants wont take AM but do COT so it’s a good Avios earner for me plus you get a CT deduction for the fee.