Barclaycard Business Premium Plus Credit Card

Choosing the right business credit card is not just about comparing cashback rates or annual fees.

The Barclaycard Business Premium Plus credit card is marketed as a premium solution for UK businesses, offering a mix of cashback, travel insurance, and reduced FX fees. This page takes a deeper dive into how to use the card effectively, hidden tricks that most business owners overlook, and alternatives worth considering.

Step-by-Step Guide to Using the Barclaycard Business Premium Plus

1. Application and Approval

• The application is available online with relatively fast approval times.
• Barclaycard typically requires:
  
  • Registered UK business details (Companies House or sole trader).
  • Minimum trading history of 6 months.
  • Business bank account and proof of turnover.

2. Setting Up Additional Cards

• Once approved, you can issue free additional cards for employees.
• Misuse protection of up to £15,000 ensures that even if staff use the card inappropriately, your company remains safeguarded.
• Recommended: link additional cards to spending limits per employee via Barclaycard’s online dashboard.

3. Maximising Cashback

• Cashback is 0.5% on all purchases, capped at £400/year.
• Businesses spending over £80,000 annually will hit the cap—beyond this point, cashback is effectively 0%.
• Pro tip: use Premium Plus for international spend or insurance-driven expenses and pair it with another unlimited cashback card (e.g., Capital on Tap) for domestic high-volume purchases.

4. Travel Insurance Usage

• Coverage includes medical, baggage, and flight delays, but only applies when the trip is paid with the card.
• For companies with regular European or transatlantic travel, this saves £150–£300 annually compared to standalone policies.
• Tip: Always book corporate flights and hotels directly with the card to trigger insurance.

5. Managing FX Costs

• The reduced 0.99% FX fee saves around £2,000 annually for companies spending £200,000 abroad (versus a typical 2.99% fee).
• Works best for import-heavy companies or tech firms paying overseas SaaS providers.

6. Expense Management Integration

• Barclaycard integrates with FreshBooks, simplifying expense tracking.
• Directors can view real-time spend, approve transactions, and automate VAT reporting—cutting accounting time by ~20%.

Hidden Hacks Few Businesses Know

1. Double-dip cashback – Pay large invoices via services like PayPal Business (with the card as funding source) to earn cashback on suppliers who don’t normally accept credit cards.
2. Combine with Amex Business Gold – Use Amex for points-heavy categories (flights, advertising) and Premium Plus for FX or capped cashback, optimising total rewards.
3. Seasonal spending strategy – Concentrate high annual spend in the first 6 months to take advantage of the 0% APR period.
4. Tax deductible fee – The £150 annual fee can be claimed as a business expense, lowering effective cost.
5. Leverage employee misuse insurance – Issue cards to staff without fear of fraudulent personal spend—it’s covered up to £15,000.

FAQ: Non-Obvious Questions Answered

1. Does cashback count as taxable income for businesses?

Yes, but most SMEs offset it as a reduction in expenses rather than profit, depending on accounting method.

2. Can sole traders apply?

Yes, though approval may depend on turnover and credit history.

3. Is the insurance valid for contractors and freelancers?

No, only directors and employees officially linked to the company.

4. Can additional cards have different limits?

Yes, spending caps can be set individually, useful for travel budgets.

5. How does Barclaycard handle late payments?

£12 late fee, up to 4 times per year—significantly lower than some rivals charging £25+.

How to Maximise Value

• Spending Thresholds: Aim to reach at least £80,000 annual spend to hit the cashback cap.
• Travel Strategy: Always use the card for flights/hotels to unlock insurance benefits.
• FX Optimisation: Use Premium Plus abroad, and another no-fee card (like Revolut Business) for non-essential transactions.
• Cash Flow Management: Time large purchases within the 0% APR window for maximum liquidity.
• Employee Control: Deploy additional cards strategically for sales teams or managers, tracking expenses digitally.

Alternatives to Consider

• Capital on Tap Business Rewards – £99 annual fee, 1% cashback uncapped, no FX fees. Ideal for high-spending SMEs.
• Amex Business Gold – £175 fee (first year free), strong Membership Rewards scheme, better for travel-heavy firms.
• Santander Business Cashback Credit Card – £30 fee, 1% cashback uncapped, but no perks like insurance.
• Barclaycard Select Cashback – No annual fee, 1% cashback, but no travel insurance or FX benefits.

Conclusion

The Barclaycard Business Premium Plus credit card is a strong option for UK SMEs with moderate-to-high annual spend, particularly those with overseas operations. While its cashback is capped and less generous than competitors, the blend of travel insurance, reduced FX fees, and employee card protections make it highly valuable for companies in international trade, consulting, or tech.