Santander Business Cash Back Credit Card

[northernladuk]

This is a valid point. In balance I'm starting to think it isn't worth the hassle...

Yup.

[happy22]

If it goes into the company account then yes.
There is a question around legal ownership of the cash from the cashback. If the credit agreement is with the company, then the company owns the debt, and the cashback.

My expectation is that it wouldn't go into the company account. It would just directly go towards reducing the debt

The OP wants to use a company card to get more benefits. That means he is defrauding the bank (and arguably the company).

Isn't this a bit like saying anyone that has taken out Costco Trade membership and then bought some food for personal consumption is defrauding Costco ...(they could well be, but) find me 1 person that hasn't

The OP could run up loads of personal debt on the card then fold the company. As soon as that is done then the OP would (I think) become personally liable.

Correct - the bank would expect a personal guarantee when taking out the product

Like a lot of questionable practises. If all goes well and is closed down cleanly at the end then no big deal. If something goes wrong (OP dying, LTD goes bust, etc.) then it could get messy. It's why it's best to keep these things separate.

This is a valid point. In balance I'm starting to think it isn't worth the hassle...

[SueEllen]

One reason to use a personal credit card is section 75. This means if anything goes wrong with a purchase over £100 like a company goes bust - and it does happen - then the credit card company has to pocket the loss not you. ( I've actually paid for holidays on credit card due to this.)

With business credit cards you don't get this protection as a business is not a consumer.

Likewise if you pay for your personal purchases with a business credit card and there is a problem, the retailer/supplier could rightfully argue that it isn't a personal purchase so you are not be protected by the Consumer Rights Act.

[Lance]

Wouldnt the cashback be subject to CT though?

If it goes into the company account then yes.
There is a question around legal ownership of the cash from the cashback. If the credit agreement is with the company, then the company owns the debt, and the cashback.

The OP wants to use a company card to get more benefits. That means he is defrauding the bank (and arguably the company).

The OP could run up loads of personal debt on the card then fold the company. As soon as that is done then the OP would (I think) become personally liable.

Like a lot of questionable practises. If all goes well and is closed down cleanly at the end then no big deal. If something goes wrong (OP dying, LTD goes bust, etc.) then it could get messy. It's why it's best to keep these things separate.

[Scratch It]

Wouldnt the cashback be subject to CT though?

[Lance]

I guess as long as you don't default on payments and can be 100% sure I doesn't touch the company bank then you'll be fine. HMRC only care that you pay the tax that's due and not if you defraud a bank.

IANAL

[happy22]

I'm looking for a good non-Amex cashback credit card for personal use. Best personal credit card around pays 0.5%.
Santander business credit card pays 1% cashback.

Is there anything stopping me using my limited company to open up one of these and then effectively just using it as a personal credit card - balance would be paid off from my personal funds and the credit card wouldn't go within a million miles of my company accounts.

Not asking from a Santander t&c perspective - there is nothing in there saying you can't put personal transactions through the card. More asking from a accounting/HMRC perspective.