6 best expense management software tools for UK businesses in 2026

The six best expense management software tools for UK businesses in 2026 are Pleo, Soldo, Expensify, Xero Expenses, Payhawk and Capital on Tap. The right one depends on whether your team pays with company cards, claims back personal spending or wants expenses on a credit line. This guide compares all six on price and features, and explains how the software works, what it costs and how to choose and roll out the right tool.

What is expense management software?

Expense management software is a tool that records, checks and reimburses business spending in one place, replacing paper receipts, spreadsheets and month end expense claims. Most tools fall into one of two groups. Some focus on reimbursement, handling claims from staff who pay out of their own pocket. Others are card led, giving employees company cards so they never spend their own money. Many platforms now do both, and all of them pass categorised data through to Xero, QuickBooks, Sage or whichever accounting software you use.

How does expense management software work?

Expense management software follows the same journey for every cost, whether it's a train ticket, a client lunch or a software subscription.

1. An employee pays with a company card, or pays personally and logs the expense in the app.

2. They photograph the receipt, and the software reads the supplier, date, amount and VAT using optical character recognition (OCR).

3. The software checks the expense against your spending policy and flags anything that breaks the rules.

4. A manager approves or rejects it in the app.

5. The approved expense syncs to your accounting software, and any money owed to the employee is added to the next reimbursement run.

What are the benefits of expense management software for a small business?

The main benefit is time. Chasing receipts, keying in card statements and checking claims by hand takes hours each month, and automating that work also cuts typing errors.

• You see spending as it happens, which makes your cash flow easier to plan.

• Card limits enforce your spending rules at the point of payment, rather than after the money has gone.

• Your team stops funding business costs from their own pockets.

• Every expense carries its own receipt, so your records are ready for your VAT return and year end accounts.

Clearer spending data also makes forecasting easier, and our cash flow guide explains how to turn it into a picture of the months ahead.

Which features should expense management software have?

A good expense management tool should offer:

• Receipt scanning in a mobile app, so staff capture receipts the moment they spend.

• A direct integration with your accounting software.

• Spending limits by person, card or category.

• Approval workflows that send each expense to the right manager automatically.

• Mileage tracking at HMRC's approved rates, if your team drives for work.

• VAT capture from receipts, so you can reclaim what you're entitled to.

• Automatic reminders for missing receipts.

If you spend in other currencies, multi currency cards and low foreign exchange fees are worth adding to the list.

Which is the best expense management software in the UK?

The best expense management software depends on your team size, whether you want company cards, credit or simple reimbursement, and which accounting software you already use.

1. Pleo

Pleo is a card led spend management platform for small and growing teams. Every employee can have a physical or virtual Pleo card, and the app prompts them to capture a receipt as soon as they pay. The Start plan costs £8 per user a month, billed monthly, and includes cards, real time expense tracking and accounting integrations. Build costs £14 and Optimise £18 per user a month. Build adds reimbursements, mileage and approval workflows, while Optimise adds budgets, spending insights and HR software integrations. Pleo suits businesses that want to give most of their team a company card.

2. Soldo

Soldo uses prepaid Mastercard cards that draw on wallets you top up in advance, so each card can only spend what's been loaded onto it. The Standard plan costs £27 a month plus VAT and includes three users, three cards, receipt capture and an accounting software connection. Plus costs £39 a month plus VAT and adds three company wallets, multi currency spending and OCR receipt capture. Soldo suits businesses that want a hard ceiling on every budget and are happy to fund cards in advance.

3. Expensify

Expensify is built around receipt scanning and reimbursement, so it works well for teams that mostly pay personally and claim the money back.

The Collect plan costs £5 per unique member a month. The Control plan costs £7 a month for each member included in an annual subscription, or £14 per active member a month on a pay per use basis, and adds multi step approvals, custom expense rules and company card management. UK businesses can also add the Expensify Card, currently virtual only, which can lower the cost of an annual Control subscription. Expensify suits businesses that want an affordable way to process reimbursements.

4. Xero Expenses

If you already use Xero, Xero Expenses is built into some of its plans. Staff photograph receipts, log mileage and submit claims through the Xero Me app, and approved claims flow straight into your books. Expenses are included for one user on Grow at £39 a month, five users on Comprehensive at £55 a month and ten users on Ultimate at £70 a month. Prices apply after Xero's introductory offer. The entry level Ignite plan doesn't include expenses. Xero Expenses suits Xero users with a handful of claimants who don't need company cards.

5. Payhawk

Payhawk combines cards, expense claims, supplier invoices and travel, with most pricing quote based and built around the modules you choose. Its Growth program costs £149 a month for 24 months and includes ten seats, ten cards, up to 15 invoices and 15 reimbursements a month and basic accounting integrations. It's open to businesses in the UK or the European Economic Area (EEA) with a single entity and fewer than 20 employees. Payhawk suits small businesses that want a platform they won't outgrow as they add staff or entities.

6. Capital on Tap

Capital on Tap is a business credit card with free expense management tools, so your team's spending sits on a credit line rather than coming straight out of your bank balance. You can give team members their own cards, set limits per transaction or per month and create single use virtual cards for subscriptions or suppliers. Cardholders attach receipts in the app, Receipt Chasers send automatic reminders, and transactions sync daily with Xero, QuickBooks, Sage and FreeAgent. Credit limits go up to £250,000, with rates as low as 13.86% APR (variable) and no annual, foreign exchange or ATM fees on the free plan. It's available to UK registered private limited companies, limited liability partnerships (LLPs) and public limited companies, and a director or major shareholder needs to give a personal guarantee. You can apply for a Capital on Tap business credit card through Capitalise by starting a funding application.

How do these expense management tools compare?

Prices and plans change often, so check the current terms with each provider before you sign up.

Do you need expense management software if you already have a business credit card?

You may not need separate software if your business credit card already offers receipt capture, spending limits and an accounting integration. A standalone platform becomes more useful once you have several layers of approval, lots of reimbursement claims or detailed budgets by department. If your card is your main expense tool, our guide to connecting your business credit card to accounting software explains how to get transactions flowing into your books.

How do you choose the right expense management software?

The right expense management software is the one that fits how your team already spends.

• Decide whether your team mainly pays with company cards or claims back personal spending.

• Check the software integrates directly with your accounting software.

• Work out your real monthly cost based on how many people will submit expenses.

• Decide whether spending should come from your bank balance, a prepaid wallet or a credit line.

• Make sure the mobile app is quick to use, or staff will keep sending paper receipts.

Most providers offer a free trial or demo, so test a tool with a few of your heaviest spenders before you commit.

How do you roll out expense management software to your team?

Start with a short expense policy that sets out what staff can spend on, the limits for common costs such as meals and travel, and how quickly they need to upload receipts.

• Connect the software to your accounting software and agree expense categories with your accountant.

• Start with a small group of regular spenders, then invite the rest of the team.

• Set card limits that match each person's role.

• Choose a clean start date, such as the beginning of a VAT quarter.

• Turn on automatic receipt reminders from day one.

After a couple of months, check the reports for unused subscriptions or rising costs, which supports the wider habits in our cash flow management tips.

Get free expense tools with a business credit card through Capitalise

A business credit card with built in expense management gives your team their own cards, spending limits and receipt capture, while spreading the cost of purchases on a credit line. Through Capitalise, you can apply for a Capital on Tap business credit card or compare business credit cards from our panel of 130+ lenders, with a dedicated funding specialist on hand to help.