Best Business Credit Cards With Rewards & Cashback For UK SMEs

We compare business credit cards with signup bonuses, unlimited cashback and air miles.

Written by

Harry Jones

Edited by

Andrew Parry

Written by
Harry Jones

Edited by
Andrew Parry

Updated: 13th September 2024

Recommended Business Credit Card For Rewards

Home » Business Credit Cards » Business Credit Cards With Rewards & Cashback

A business credit card not only helps track expenses and ease cash flow, but it can be a way to earn rewards and cashback for your spending. But with so many options available, it can be difficult to see which one best suits your needs.

We have compiled a shortlist of credit cards that have the best cashback and rewards to see what comes out on top. Just keep in mind that functionality, APR, and other fees are important to consider.

The business credit cards that offer the best rewards and highest cashback

Card Name	Annual Fee	Cashback	Intro Bonuses & Benefits	APR	Apply
Capital on Tap Free Rewards Card	£0	1% cashback uncapped	Up to 42 days interest-free. Preloading card possible.	Rates as low as 15.22% APR Representative APR of 36.19% (variable)	Apply Here
Capital on Tap Business Rewards Card	£99	1% cashback uncapped	10,000 bonus points when you spend £5,000 in the first 3 months. Up to 42 days interest-free. Redeem points for Avios Points. Preloading card possible.	Rates as low as 15.22% APR Representative APR of 59.15% (variable)	Apply Here
Santander Business Cashback	£30	1% on all spending	None	Representative APR of 23.7% APR (variable)	Apply Here
Barclaycard Select Cashback	£0	1% cashback uncapped	Up to 56 days interest free. Free access to FreshBooks (worth £260/year).	Representative APR of 27.5%	Apply Here
RBS Business Plus Card	£70	0.5% cashback on all purchases. 1% on eligible travel & accommodation. 2% on eligible business supplies. 3% at eligible fuel and EV charging stations. Cashback is limited to £600 per year.	Up to 56 days free of interest on purchases.	Representative APR of 29%	Apply Here

Capital on Tap Free Business Credit Card

Free Rewards Card

Business Rewards Card

Capital on Tap has two clear options: free and £99 per year. Importantly, both cards have the same cashback, which is 1% uncapped. So, for every £100 you spend on any purchase, you receive £1 back.

Both cards also benefit from discounts with popular SaaS platforms like Sage and Slack, as well as having unlimited company cards, each with its own spending control. Reporting features to track expenses are strong, along with syncing to accounting software. Both cards also benefit from no FX or ATM fees.

The main difference between the two cards is that the Business Rewards card benefits from Avios points, as well as an introductory Avios offer with 10,000 points up for grabs when you spend £5,000 in the first three months. 1 Avios point is worth between 0.5p and 2p, meaning the introductory offer could be worth £50-£200 and may cover the first year’s annual fee.

Both cards are strong and both are good for international users, but frequent flyers should consider the £99 Business Rewards card. The introductory offer should cover the annual fee, and during this year you can empirically count the Avios points you accumulate to forecast whether it’s greater than £99 when assessing the second year. If not, you can downgrade.

Minimum turnover needs to be at least £2,000 per month and sole traders are not accepted.

Eligibility requirements:

Minimum business turnover of £24,000 per year
No unsatisfied CCJs against you or your business in the past year
You are an active private limited company (Ltd) or limited liability partnership (LLP)

They will not approve:

Sole traders
Charities, trusts, or funds.
Dormant, dissolved or inactive companies
Public Limited Companies (PLC) or inactive companies

Barclays Business Select Cashback

The Barclay’s Business Select Cashback offers 1% uncapped cashback, with the caveat that it only applies on the months when you spend £2,000 or more. This is a good offer as there are no fees and is open to start-ups and sole traders.

This Barclay’s card is fairly typical of its kind. Representative APR is on the higher end of average, while foreign transaction fees are 2.99%. However, there is access to a FreshBooks accounting plan that is worth £260/year. Other discounts are available with the AA, AXA Health, and Zipcar.

In summary, the main consideration for this card should be whether you will consistently spend over £2,000 per month and whether you need the FreshBooks Plus plan, which is ongoing and could be truly valuable for SMEs. 56 days of interest-free credit is also competitive, and start-ups are accepted (with a business plan).

Eligibility requirements:

- Sole traders or registered UK businesses
- Turnover or new business plan exceeds £10,000 per year (start-ups can apply)
- Where there are existing financials available, they need to have been well managed over the previous 12 months.
- No previous rejections for a Barclays commercial card in the past six months

Santander Business Cashback Credit Card

The Santander Business Cashback card is a straightforward offering. For a £30 annual fee, 1% uncapped cashback is provided with no spending requirements.

There is no introductory offer or further reward for using this card, making it very limited. There are, however, no FX fees on purchases made using the local currency, as well as 4 cards for other directors, owners, or employees.

APR is relatively competitive, but there is a 3% transaction fee for cash transactions (£3 minimum). Purchases, however, have a relatively low annual interest of 18.9%.

Compared to the Barclays offer, the cashback offering of this card makes more sense when you’re less confident about spending the £2,000 monthly minimum asked of Barclays. Therefore, it may be suited to businesses with very low overheads, but enough to warrant the £30 annual fee.

However, its affordable interest rates and 56-day interest-free window are overshadowed by its lack of third-party integration and rewards.

You must have a Santander need a existing 1|2|3 Business Current Account or Business Current Account to be eligible for this card which will likely put off most businesses.

Eligibility requirements:

Sole traders or registered UK companies (partnerships, limited liability partnerships or private limited companies) with no more than 2 partners, members or directors.

Must have a Santander 123 Business Current Account or Business Current Account.

RBS Business Plus Credit Card

The RBS Business Plus Credit Card is a more complicated product, with varying cashback rates, strict purchasing criteria, capped limits, and a significant £70 annual fee per cardholder. It’s far more appealing than it sounds, though.

Fuel and EV charging purchases have the best cashback at 3%. This is fairly non-significant for commuters, as a 20-mile commute in a typical diesel car will accumulate to £50 per month (50p cashback). For example, a courier driving 300 miles/day in a Ford Transit van costs around £1300/month in diesel, which would generate £39 in cashback. Retail businesses can make good use of the 2% cashback for supplies.

The purchase rate of 13.9% is competitive as well as having a useful Clearspend integration.

The main caveats are that card is also only available to RBS customers and there is a £600 annual cashback limit, (which is £530 after the annual fee).

The viability of the RBS Business Plus Card depends greatly on the business spending: if its low it’s not worth the £70 fee, and if you spend over £60K per year you reach the cashback limit.

Eligibility requirements:

Existing RBS bank account holder
Registered UK business
Annual turnover of under £6.5 million
No Count Court Judgements or declared bankruptcies

What is a business cashback and rewards credit card?

A business cashback and rewards credit card allows companies to earn points or cashback when they use the card. Like any other business credit card, the trading history, business structure, and credit history of the individual and business are taken into account when applying. Some bonuses may be introductory, while others are ongoing. Businesses with high amounts of spending which they can pay using their business credit card will benefit from paying the annual fees.

Can you get cashback on all types of expenses paid for by credit card?

For most cards, cashback will be consistent across all types of spending. The exception is Natwest, which varies the cashback based on the type of spending. However, all cards have cashback T&Cs, and most business credit cards exclude cashback on balance transfers, cash transactions (i.e. buying currency or gambling), and some may even exclude insurance purchases.

Is cashback or airmiles earned on a company credit card by a company director taxable?

It will depend on the structure of the company but generally they are not. HMRC has published their guidance on air mile and credit card cashback schemes here. It states:

In general, air miles, petrol tokens, credit card points etc. acquired by an employee are not taxable if they were acquired in the same way as applies to any other member of the general public, for instance by buying goods or services on which such benefits are given.

If you are unsure then ask your accountant.

How do I get the rewards?

Rewards are often accumulated in the form of points which can then be converted to cash, pay off the credit card balance, buy gift cards for employees, or convert to air miles like Avois.

Are business rewards cards worth it?

Generally, the cards with the highest rewards also come with the highest annual fees. Therefore, it’s important to estimate your yearly spending and calculate if it yields more points and cashback compared to other cards after fees.

Pros

Cons

Key elements to check when comparing business credit cards with rewards?

Percentage of cashback offered by spending category
Categories of spending eligible for rewards
Options for redeeming earned rewards
Estimated total rewards based on spending projections
Factor in annual fees to gauge the annual net reward
Any limit on the cashback that can be earned

Credit cards are for more than just rewards, so it’s important to consider other elements, such as:

Eligibility criteria
APR and interest-free periods
Employee functionality such as spending caps, ATM withdrawals and reporting
Other charges like cash withdrawal fees and foreign exchange fees
Accounting features, such as integration with Sage

How to select the right cash back credit card for your business

Determine your business spending patterns
Make a list of must-have features & terms (i.e. Sage integration and £100,000 credit limit). Begin ruling out cards
Calculate cashback and rewards for each card based on your spending
Factor in annual fees, hidden fees, and APR
Consider introductory bonuses
Perform due diligence on your card of choice by checking reviews and customer service

Is there a limit to the cashback that can be earned?

Most of the cards we have listed have uncapped cashback. Some cards, such as the RBS Business Plus card, have annual cashback limits which typically require tens of thousands in spending to reach.

How can I maximise the cashback earned?

Intuitively, cashback is maximised by spending more. Of course, this goes against the business goal of keeping costs down, but there are some tactics to deploy.

Beyond ensuring that as much of your business spending is done via the credit card as possible, it’s worth considering cards that allow you to preload, like Capital on Tap’s card. So, if your credit limit is £10,000, you could preload the card with an extra £10,000 meaning that £20,000 can now be spent before hitting the credit limit. All of this spending can benefit from cashback.

FAQs

Can I redeem the cashback for anything I want?

Yes. The benefit of cashback is it’s a simple reward of cash thay can be used for anything (including paying down your current outstanding balance).

How can I maximise the benefits of a cashback business credit card?

Use the card for as many business purchases as possible. If it’s possible to pre-load the card, this can be a tactical way to increase cashback card spending.

Is cashback earned on a credit card taxable?

In geneneral, HMRC does not consider cashback and rewards earned to be taxable income. However, in a narrow set of cases, rewards that are not based on spending (i.e. some referral bonuses) could be considered miscellaneous income. Cashback is taxable income when the beneficiary is a financial trader.

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