How to earn Avios on business spending (UK)

Why Should Your Business Collect Avios?

Avios are the loyalty currency of the British Airways Executive Club, but they can be used across a wide range of airline partners, including Iberia, Aer Lingus, and Qatar Airways. For a small business, collecting them isn't about luxury travel; it's a strategic financial decision to reduce a significant business expense: the cost of travel.

Every pound you spend on essential business costs—from software subscriptions to advertising—can generate a return in the form of Avios. These points can be redeemed for flights, upgrades, hotel stays, or even car hire. For a company director needing to visit clients in another city, this could mean turning thousands of pounds of supplier payments into a 'free' flight, where only taxes and fees are payable. For a growing agency, it could mean upgrading a key team member to business class on a long-haul trip, ensuring they arrive rested and ready for an important meeting. The core benefit is extracting value from money your business has to spend anyway.

The Direct Route: British Airways Amex Business Cards

American Express offers two co-branded business cards with British Airways, which are often the most straightforward way to earn Avios directly on your spending. Credit is subject to status and approval.

The primary card is the **British Airways American Express Accelerating Business Card**. It typically has no annual fee and allows you to earn 1 Avios for almost every £1 you spend on the card. This is a solid entry point for businesses wanting to start collecting Avios without committing to high annual fees.

The more premium option is the **British Airways American Express Business Plus Card**. This card comes with a significant annual fee but offers a higher earning rate of 1.5 Avios per £1 spent. Its main feature is the coveted Companion Voucher. When you spend a certain amount on the card (typically £10,000 within a year), you receive a voucher that allows you to book a second seat on the same flight for a companion for no additional Avios – you only pay the taxes and fees. For business partners or directors who travel together, this benefit can offer substantial value, often far exceeding the card's annual fee.

The Flexible Route: Amex Membership Rewards Cards

If you value flexibility, American Express's own Business Gold and Platinum cards could be a better fit. Instead of earning Avios directly, you earn Membership Rewards points, which can be transferred to Avios at a 1:1 ratio. This means 10,000 Membership Rewards points become 10,000 Avios.

The key advantage is that you are not locked into the Avios programme. You can transfer your points to numerous other airline and hotel loyalty schemes (like Virgin Points or Hilton Honors) if a better redemption opportunity arises. This flexibility can be invaluable.

The **American Express Business Gold Card** is a popular starting point. It often comes with the first year

s annual fee waived and earns 1 Membership Rewards point for every £1 spent. It provides a low-risk way to see if the programme works for your business's spending patterns.

The **American Express Business Platinum Card** commands a high annual fee but comes with a wealth of benefits aimed at the frequent business traveller. These include comprehensive worldwide travel insurance, airport lounge access, and elite status with several hotel chains. The earn rate is also typically higher. For directors and senior managers who travel regularly, the value of these benefits may justify the cost, with the points-to-Avios conversion being an added bonus.

A Popular Visa Alternative: The Capital on Tap Business Credit Card

A common challenge for businesses wanting to earn rewards is that not all suppliers accept American Express. This is where a Visa or Mastercard credit card becomes essential. The Capital on Tap Business Credit Card is a popular choice for UK small and medium-sized enterprises.

This card allows you to earn points on your spending, which can then be converted to Avios. Typically, you earn 1 point for every £1 you spend. The conversion rate to Avios is currently 100 Capital on Tap points for 1 Avios. This means that spending £10,000 would earn you 10,000 points, which converts to 1,000 Avios.

While the earning rate is lower than with Amex cards, the Capital on Tap card's strength lies in its wide acceptance and high credit limits, which can reach up to £250,000, subject to eligibility. It's a practical tool for paying major suppliers, HMRC (via a commercial debit card), or for any expense where Amex isn't an option. For new applicants, using a promo code like SETTINGUP can sometimes unlock a welcome bonus after meeting a minimum spend.

Using a combination of an Amex card for suppliers that accept it and a Capital on Tap card for everything else can be an effective strategy to ensure no spending goes unrewarded.

What Business Spending is Eligible to Earn Avios?

To maximise Avios, you should aim to pay as many legitimate business expenses as possible using your chosen rewards card. Your accounting software and a separate business bank account (such as Tide) can help you keep track of these expenses, ensuring you only claim for allowable costs. Most standard business expenditures are eligible. Here are some common categories:

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• **Digital Advertising:** Paying for your Google Ads, Facebook, Instagram, or LinkedIn campaigns on a rewards card can be a major source of points.
• **Software & Subscriptions:** Your monthly costs for Microsoft 365, Adobe Creative Cloud, accounting software (like Xero or QuickBooks), and other SaaS products.
• **Stock & Materials:** Purchasing inventory for resale or the raw materials needed for your trade.
• **Travel & Accommodation:** Paying for flights, train tickets, hotels, and car hire for business trips.
• **Fuel & Vehicle Costs:** Using your card to pay for fuel for company vehicles or for maintenance.
• **Professional Services:** Payments to your accountant, solicitor, or consultants (check if they accept credit cards).
• **Postage & Couriers:** Paying for Royal Mail or other courier services when shipping goods to customers.

Stacking Rewards: Shopping Portals and Partner Programmes

Beyond direct card spending, you can "stack" your earning by utilising partner programmes. This allows you to earn Avios multiple times on a single transaction.

The **British Airways Avios eStore** is a shopping portal that allows you to earn Avios for online purchases. Before buying business supplies from retailers like Viking, Currys, or John Lewis for Business, you simply log in to the portal and click through to their site. You will earn a set number of Avios per £1 spent (e.g., up to 10 Avios/£1 during promotions). This is *in addition* to the Avios you earn from paying with your BA Amex or Capital on Tap card.

For example, if you spend £500 at a retailer offering 5 Avios per £1 via the portal, you would earn 2,500 Avios from the portal. If you pay with a BA Amex Business Plus card, you would earn an additional 750 Avios (at 1.5 Avios/£1) on the transaction itself, for a total of 3,250 Avios.

Similarly, linking your Nectar card to your British Airways Executive Club account allows you to convert points earned on spending at Sainsbury's, Argos, or Esso. The standard rate is 400 Nectar points converting to 250 Avios. This may be useful for businesses that buy office supplies, client refreshments, or fuel from these retailers.

Key Considerations and Common Pitfalls

Earning Avios can be very rewarding, but it pays to be aware of the potential downsides and administrative rules.

First, the value of rewards is immediately destroyed by interest payments. Most business rewards cards are charge cards or have high interest rates. You should only use one if you are confident you can pay the balance in full every single month. If you need to borrow, a traditional business loan or overdraft is almost always a cheaper option.

Second, exclusively using a personal rewards card for business spending is a poor practice. It complicates your bookkeeping and can create issues with your Director's Loan Account (DLA) if you run a limited company. While you might be tempted to use a high-earning personal card, it creates a messy audit trail. It is far cleaner to use a dedicated business card for business expenses. If you are in this situation, speak to your accountant about how to manage it correctly.

Finally, it is worth noting that Section 75 purchase protection, which applies to personal credit cards, does not apply to business credit cards. This consumer protection is not available for business-to-business transactions and lending.