Credit Card rewards

[psp55]

Can the 3 directors use the rewards from our company credit card without a tax implication.

example - air miles gained through purchases of business needs, transferred to company directors to use for holidays etc.

 

[Rawlinson Pryde]

If you google the HMRC manual EIM21618

 

[Argentum Tax]

Can the 3 directors use the rewards from our company credit card without a tax implication.

example - air miles gained through purchases of business needs, transferred to company directors to use for holidays etc.

I would agree that EIM21618 would indicate that HMRC do not consider air miles earned by employees on their company provided credit card are normally reportable as taxable benefits-in-kind.

However what the OP says in their opening question would seem to imply that the ‘air miles’ were initially earned by the employing company and then transferred by the company to the employees/directors to use for buying holidays etc. If this is actually what is happening in this case then EIM21618 would mean that HMRC consider the value of the holiday etc to be a chargeable benefit-in-kind and reportable as such to HMRC by the employer.

It all hinges on whether the points were initially awarded to the employee (and have belonged to them from the outset) or whether the points were initially earned in the name of the employer and then transferred to the employee by the employer.

 

[IanSuth]

Deloitte recently stopped all managers using personal credit cards for business expenses (with claim back after) as they felt the amount of rewards many were getting from that arrangement was getting to the level of being BIK implications