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What Are Air Miles Business Credit Cards?

These are a type of business credit with rewards that enable users to accumulate points with one or more airline schemes. Air miles business credit cards can differ in their terms and rewards, but they mostly follow a similar pattern: the more a business spends on its card, the more reward points it earns. Some cards limit this to just Avios points, while some of the best air miles business cards provide a choice in how to redeem the points.

The amount of points you earn per pound spent is known as the earning rate, and it differs between card providers. Further, the cash value upon redemption also differs depending on the point scheme, with Virgin Points generally considered to have the highest redemption value, with Avios on the lower end.

Among the three major loyalty schemes, 10,000 points of each is worth roughly:

• Avios (British Airways Executive Club): £80-150
  • Best for: Short-haul European & UK domestic flights
  • Can be redeemed for: BA flights, Oneworld partner airlines, hotels like Marriott and IHG, and car rentals.
• American Express Membership Rewards: £100-200
  • Best for: Maximum flexibility and transfer options
  • Can be redeemed for: Transfer to countless airline/hotel partners, shopping, and gift cards.
• Virgin Points (Virgin Atlantic Flying Club): £150-250
  • Best for: Premium-class long-haul flights.
  • Can be redeemed for: Virgin Atlantic Flights and partner airlines like Delta and Air France-KLM.

Key factors to consider when choosing a business credit card with air miles

• Airline Partnerships: The card should align with your preferred airline. Cards are typically linked to just one specific airline loyalty program, such as Avios (British Airways) or Virgin Points (Virgin Atlantic). While partner airlines exist, their redemption value may be less.
• Earning Rates: The higher the earning rate, the more your spending is rewarded. Earnings rates might be heightened for purchases made directly with the partner airline, creating a positive loop of loyalty (maximum earning rate → strong redemption)
• Sign-up bonus: It’s common to receive a welcome bonus of 10-50,000 points if you meet the minimum spending requirements in the first few months.
• Points flexibility: Some point systems have more partners and more ways to redeem, like Amex, which can even be redeemed for non-travel gift cards.
• Monthly spend volume: To weigh up whether the annual fee is worth a certain earnings rate and point system, it mostly comes down to your monthly spend volume. Plus, some cards have ongoing bonus points for hitting specific monthly spending amounts.
• Travel frequency: If travel spending results in a heightened earnings rate, the proportion of your spending that’s travel-related will heavily influence what card is best.
• Extra perks: Business credit cards in the UK often have other perks, such as discounts with partners or access to airport lounges. Travel insurance is a highly valuable perk to look out for.
• Interest rate period: The number of days before you’re charged interest has a big impact on cash flow. For those who intend to have high credit utilisation, this becomes important.
• Foreign transaction fees: Frequent travellers tend to spend money abroad. It’s not advised to use a credit card abroad over a multi-currency account, but it’s often logistically easier, especially for protection and employee spending. Look out for FX fees, as some card providers have zero fees.
• Annual fees: Consider whether the annual fee justifies the benefits and earning rate. When comparing cards, this underpins the value each provides – just make sure to apply your own spending patterns for context.
• Card fees and APRs: Air miles for businesses are only part of the use case. Accessing credit comes at a cost; some cards make back some of their money by having extremely high APR and late payment fees. For those who are disciplined and don’t need long periods of credit, this is less important.

Before any application, assess your travel patterns and spending habits to help choose a card that offers the most value. Generally, higher annual fees will become more justifiable for high spenders and long-haul travellers. For low spenders, low fees and redemption flexibility become more important to squeeze out maximum value.

Also consider the risk of being too locked into one airline. It’s common for routes to change and airlines to pull out of certain airports. A London-based business surrounded by five airports isn’t a concern. But for those frequenting, for example, Exeter to Amsterdam via KLM, this introduces a redemption risk for their Flying Blue points.

Always ensure repayments are timely to maximise benefits and avoid interest charges.

Airmiles schemes in operation

Why choose a business air miles credit card?

Business credit cards with air miles generally return more value than straight cashback. Earning rates can often be double or triple the usual 1% cashback.

This isn’t without taking into account the additional perks, like travel insurance, which can pay out far more than the UK-EU Regulation (EC) No 261/2004 compensation amounts – plus it may cover lost luggage and more.

Airport lounge access and companion vouchers can both lead to large savings and make the business trips more comfortable, as food and drink are unlimited and complimentary.

Not only do business credit cards help separate business and personal expenses, but the annual fee itself is a business expense.

How can you maximise the air miles earned on your business credit card?

The best air miles business cards typically provide supplementary cards for employees. This helps with expense tracking and maximising rewards. Suppliers can frequently be paid with a credit card, as can online advertising. In some instances, rewards can be earned from paying HMRC taxes.

Beyond spending, redemption needs consideration. Look for maximum redemption value, such as sticking to the core partner airline. Avoid spending more (e.g., business class) than initially planned and consider that upgrades are often discounted because of the card’s reward system. Airport lounge access can also lead to additional savings by arriving at the airport early and eating in the lounge rather than paying for a meal elsewhere.

Can air miles and rewards be used for personal use without any tax implications?

When you accrue business credit card air miles, you could use them for business travel or personal travel. HMRC generally does not tax air miles or loyalty points if they are awarded for using a credit card, and the reward is not convertible into cash, but it is worth getting tax advice to confirm this.

If the rewards are converted into cash, vouchers, or other items of value, HMRC may treat them as a taxable benefit-in-kind. It is therefore advisable to stick to using points for flights or upgrades, rather than gift cards or cash equivalents, if using them for personal use to avoid falling into taxable territory.

Are business credit cards with air miles worth it?

There is no set figure at which business credit cards with air miles suddenly become worthwhile. However, businesses spending £2,000+ a month which require air travel at least once per year will likely see better value than standard cashback.

If you’re on the fence about earnings rates vs the annual fee, consider cards with fees waived for the first year and/or a welcome bonus that you’re confident in hitting. You can always switch next year.

How to boost the air miles on your business credit card?

Route all eligible expenses through your air miles card and provide employees with a card. Don’t neglect recurring subscriptions, like accounting software, and consider shopping around if your provider doesn’t take your business credit card.

Time any large purchases so they are within the introductory sign-up and any quarterly bonus period if possible. Applications take around a week, so bear this in mind before a large purchase is due, and don’t be afraid of having more than one card (e.g., one for EV charging and one for travel).

The advantages of air miles credit cards for business

Business credit cards with air miles provide spenders with an enhanced earning rate for travel spending, along with travel-related perks, like insurance and airport lounge access. With enhanced redemption at certain partners, there can be a reinforcing loop where loyalty is genuinely rewarded.

Other benefits include tracking expenses, VAT reclaims, providing employee cards, and access to short-term credit.

Pitfalls to avoid when using a credit card to collect air miles

• Overspending to chase rewards, like unnecessary upgrades
• Carrying interest-bearing balances
• Misunderstanding the rules around expiry
• Forgetting to redeem points
• Missing out on travel insurance because the flights were purchased on a different card
• Providers not accepting Amex due to high processing fees

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