B2B Trade Card - Times Up ???

[UK Contractor Accountant]

This loyalty card has been operating for almost 8 years and is marketed as offering 80% cashback to business owners.

Anybody used this tax avoidance scheme which is under HMRC's radar as a tax abuse scheme?

Is it still going?

 

[WaveJumper]

Never used it but you raised my interest and a quick look on CH suggested they still going very strong, I see you can't view their website without creating an account but I did find this info on them, will be interesting to hear if anyone has made use of the "system"

Fintech loyalty card scheme designed to avoid tax

Fintech company B2BTradecard has run a successful loyalty card business for eight years, which lists a reduction in corporation tax as a benefit, but the

www.accountingweb.co.uk

 

[UK Contractor Accountant]

Never used it but you raised my interest and a quick look on CH suggested they still going very strong, I see you can't view their website without creating an account but I did find this info on them, will be interesting to hear if anyone has made use of the "system"

Fintech loyalty card scheme designed to avoid tax

Fintech company B2BTradecard has run a successful loyalty card business for eight years, which lists a reduction in corporation tax as a benefit, but the

www.accountingweb.co.uk

yes - they restricted their site access when that article got published

The website is no longer public, and the employees’ LinkedIn profiles all show them leaving the company in July or August 2023.

 

[UK Contractor Accountant]

ill be interesting to hear if anyone has made use of the "system"

one of my clients (money broker) was fooled into the Scheme following a Networking Event in the big City

 

[Ozzy]

Wow. I never knew of this, it still never ceases to amaze me how many people see something “too good to be true/safe/legit” and go for it.
Just isn’t worth the risk.

 

[BusterBloodvessel]

It's crazy that anyone could think they could get away with it on that scale.

I have, actually, used something similar in my previous employment (well sort of). We used to occasionally run competitions where customers could "Win £50 Cash". The way we administrated this was that we purchased these pre-paid Visa cards of £50 each, or £100 or whatever the prize was that week and sent them to the winners. There were some small rumblings about the tax implications of this for the winner but it was such small amounts so infrequently (it might be twice a year we had 5 x £50 winners and 5 x £100 winners for example) that we just got on with it.

There then became a couple of instances with customer events and entertainment where we couldn't get the budget approved for it. So on a few occasions, we purchased a £500 pre-paid card as a "prize" from our promotions budget. That card was then actually given to myself or one of the sales team and we used it to pay for drinks/meal with clients at an event. As far as the company was concerned they got an invoice for a £500 prize so they'd had the expense and could claim it as such, and as far as the card company was concerned they'd been paid for loading the card up. The actual £500 was then sort of in no-mans land and it was of nobodys concern after that where it was spent and on what!

We did always wonder if that was a bit naughty but think we did it on 3 occasions for £500 or less. This is like that, but on acid! How could anyone think flaunting the idea so publicly and for such huge values could work?!

 

[UK Contractor Accountant]

How could anyone think flaunting the idea so publicly and for such huge values could work?!

The scheme was initially, I believe, endorsed by a well known Tax Consultancy Practice.

I suspect they have distanced themselves from it now - they thought it would operate like air-miles for employees which are tax free.

 

[IanSuth]

The scheme was initially, I believe, endorsed by a well known Tax Consultancy Practice.

I suspect they have distanced themselves from it now - they thought it would operate like air-miles for employees which are tax free.

Even the air miles bit is being queried

My Brother who is senior at a big accountancy practice used to put all his expenses through a credit card that earned him airmiles (even a £15k xmas party drinks bill) - then suddenly the whole firm was made to stop as someone queried whether loyalty/cash back schemes attached to credit cards used for reimbursed business expenses might count as BiK not least as different levels of employee had differing access to be able to earn those bonuses/airmiles