Question Re: Credit Cards with Cashback

lichtie

Hello all,

Was just pondering about Credit cards with cashback, I already use the Santander 123 Card for petrol purchases but I have another query, which might not be the most morally sound;

I own a business which has high turnover - low margin and I have to buy a lot of stock for it. Would it be legal for me to use a personal credit card to buy the stock, gain the cashback and 'reimburse' myself from the business account?

I can imagine that card limits would have an impact on what I could spend (typically £4k stock spend per week)but, with a bit of planning, I reckon I could easily spend enough for the cashback to run into a decent 4 figure sum per year.

Thoughts?

Whiner

I'm not a business expert, so what I can can't be taken to be legally correct but - I would imagine that what you plan to do is ok.

King_Of_Fools

Most personal cashback cards specifically have terms and conditions that say they are not to be used for business spending and if you are found to be doing so then the company has the right to request the cashback back from you.

bsms1147

Business Credit Card
http://www.capitalone.co.uk/creditcards/aspire-business-credit-card.jsf

Up to 1.25% (0.5-1.25% tiered) cashback.

GingerBob_3

King_Of_Fools wrote: »

Most personal cashback cards specifically have terms and conditions that say they are not to be used for business spending and if you are found to be doing so then the company has the right to request the cashback back from you.

What precisely qualifies as business spending? I currently use one cash back card solely for expenses incurred as an employee. I guess this is not what you mean?

InsideInsurance

Most people that I know with an AmEx Centurion card have them because they put their business expenses on them but we are mainly talking travel rather than say buying pallets of toilet roll.

Its certainly not illegal but there can be restrictions on "business use". I think if its your travel/ subsistence/ entertainment type things then you are ok but ordering your company stock on it may be too easy for them to spot and block you

GingerBob_3

InsideInsurance wrote: »

Most people that I know with an AmEx Centurion card have them because they put their business expenses on them but we are mainly talking travel rather than say buying pallets of toilet roll.

Its certainly not illegal but there can be restrictions on "business use". I think if its your travel/ subsistence/ entertainment type things then you are ok but ordering your company stock on it may be too easy for them to spot and block you

Yes, I think that's about right.

guesswho2000

GingerBob wrote: »

What precisely qualifies as business spending? I currently use one cash back card solely for expenses incurred as an employee. I guess this is not what you mean?

I'd expect they mean the expenses of running and operating a business in which you have an interest (such as buying stock, paying business invoices, etc.).

Expenses incurred as an employee are different - it's quite normal for employees to incur expenses (travel, hospitality, subsistence, etc.) and claim them back from an employer. Some employers don't offer company credit cards, ours do, but we still require expense claims - were specifically banned from using company cards for vehicle fuel, this is reimbursed at HMRC mileage rate, hence we have to pay for it upfront.