I've been approached by B2BTradeCard and was wondering whether anyone had any experience?
The general idea is that X Ltd pays, say, £100 in 'advertising' costs to B2B, Mr X receives £80 in Mastercard points on a prepaid card. It's a profit extraction method that has been okayed by Abbey Tax.
Replies (9)
Please login or register to join the discussion.
So the idea is that the company pays £100 and gets CT relief at, say, 20% so the net cost to the company is £80. That £80 is then paid back to the director, supposedly tax-free?
I'd be interested to see Abbey Tax's rationale.
I had a similar thing with something called BBX currency, was a complete waste of time listening to the rep (self employed of course) waffle on for an hour for me to ask what I can spend the BBX "money" on given I dont do any advertising...
Stay clear and stick with sterling is my advice.
Pay at pump fuel transactions pre-authorise £99 (effectively reserving this sum against the balance or credit limit) which is then released when the actual transaction is processed. It prevents fuel being dispensed when there are insufficient funds.
It's blatantly artificial* and the surprise is that the promoters have got away with it for so long.
* which doesn't necessarily mean it's unlawful. After all, lots of multinationals artificially route transactions through low tax countries and they get away with it.
I would, though distinguish this from airmiles on the basis that the benefit here is very large in relation to the spend.
I would also make the distinction (not that I’m certain that it matters) that Air Miles “belong” to the individual in that he has “earned” them by doing the travelling.
In this case there is no such nexus and the individual is receiving a significant financial benefit as a consequence of his employer’s expenditure. I also agree that a reward of £80,000 for a spend of £100,000 is blatantly excessive (again, whether that makes any difference in law I’m not sure).
Finally, one also has to consider whether an individual member of the general public would receive the same reward (on the assumption that said member of the public would be prepared to spend £100,000 to receive £80,000 of credit to be spent on a limited range of products).
The general idea is that X Ltd pays, say, £100 in 'advertising' costs to B2B, Mr X receives £80 in Mastercard points on a prepaid card.
What's the basis for claiming a deduction for £100 worth of advertising which presumably you don't get? Doesn't look very W&E to me.