Expense Cards for Employees (2026)

Issuing expense cards to employees removes the friction of reimbursement, gives finance teams real-time visibility, and reduces the administrative burden on both sides. This guide covers how employee expense cards work in practice, what controls to configure, and what UK businesses need to know about HMRC treatment before they start issuing cards.

How employee expense cards work

An employee expense card is a payment card issued to a staff member that draws on a business account or a ring-fenced budget set by the employer. The employee uses the card for approved business purchases, photographs receipts via a mobile app, and the transaction is automatically synced to the business’s accounting software.

The card remains under the employer’s control at all times. The employer sets the budget, the permitted spend categories, and any merchant restrictions. The employee never needs to spend personal funds and does not need to submit a manual expense claim. When the transaction is made, it is visible to the finance team immediately.

Most platforms issue both physical cards for in-person use and virtual cards for online purchases. Virtual cards can be created instantly and assigned to a specific supplier or project, then cancelled once the purpose is complete. This is particularly useful for one-off contractor payments or software subscriptions where a dedicated card number reduces exposure.

Setting spending limits and category controls

Before issuing cards, finance managers should define a clear policy covering which employees receive cards, what budgets apply, and which categories of spending are permitted. Most platforms translate this policy directly into card controls:

• Per-card spending limits. Set a maximum transaction amount or monthly budget per card. When the limit is reached, the card declines automatically without any action needed from the finance team.
• Merchant category controls. Block or restrict specific merchant category codes, such as entertainment, hotels, or cash withdrawal. This enforces policy at the point of purchase rather than relying on post-hoc review.
• Time-based limits. Some platforms allow daily, weekly, or monthly caps independently of an overall balance, useful for field teams with regular but predictable expenses.
• Project or cost centre allocation. Cards or individual transactions can be tagged to a specific project, department, or client, making it straightforward to allocate costs accurately in the accounts.

Limits can typically be adjusted in real time from the administrator dashboard. If an employee needs a higher limit for a specific trip or purchase, the finance manager can grant a temporary increase and revert it once the need has passed.

More sophisticated platforms let you tier controls by seniority. Junior staff can be given low limits and restricted to a narrow set of merchant categories, while senior managers receive higher or uncapped budgets. Soldo and Pleo both support independent card profiles, which is more granular than a blanket company policy and reduces the need for manual review of routine low-value spend.

Top expense cards for employees

The main platforms for UK businesses issuing expense cards to employees differ primarily on pricing model, card type (prepaid versus credit-based), and accounting integration depth. The table below covers the four options most commonly suited to UK SMEs and growing businesses as of July 2026.

All pricing is indicative as of July 2026 and subject to change. Verify current rates directly with each provider before committing.

HMRC and tax implications for businesses

Business expense cards are not a tax-free benefit in themselves: the tax treatment depends on what the employee spends the card on, not the card mechanism.

Spending on legitimate business expenses, such as travel, accommodation, client entertaining within policy, or equipment, is not a taxable benefit to the employee provided the business has a proper expense policy and adequate records. HMRC expects businesses to be able to demonstrate that expenditure was wholly and exclusively for business purposes.

Key points for compliance:

• VAT receipts. To reclaim VAT as input tax, the business must hold a valid VAT receipt for the purchase. A card statement alone is not sufficient. Receipt capture functionality in expense platforms addresses this directly by prompting employees to photograph receipts at the point of purchase.
• P11D reporting. If employees use expense cards for personal expenditure that is not reimbursed to the business, this may need to be reported as a benefit in kind on a P11D. Platforms with clear category controls and receipt matching significantly reduce the risk of personal spend going undetected.
• Dispensation and HMRC approval. Businesses that reimburse employees at approved HMRC benchmark rates (such as HMRC mileage rates) do not need to report those payments. However, expense card spending on subsistence above benchmark rates requires either a PAYE settlement agreement or P11D reporting.
• Record-keeping. HMRC expects expense records to be retained for at least six years. Platforms that store transaction data, receipt images, and approval records in a searchable archive satisfy this requirement more reliably than paper-based systems.

Businesses unsure about the correct treatment for specific categories of expense should seek advice from an accountant or refer to HMRC’s Employment Income Manual.

What to look for in a provider for employee cards

Key features to evaluate when choosing an expense card platform:

• Number of cards included in the base price. Some providers charge per card, others include a fixed number in the plan. For businesses issuing cards to a large team, per-card fees add up quickly. Wallester’s free plan includes up to 300 virtual cards, a generous allowance for high-volume issuance at no monthly cost.
• Mobile app quality. Employees interact primarily through the app for receipt capture and spend visibility. A poorly designed app leads to adoption problems and incomplete records.
• Accounting integrations. Direct connections to Xero, QuickBooks, or Sage are standard among leading platforms. Check that the integration pushes the level of detail you need, including VAT codes and nominal account mapping, not just transaction totals.
• Approval workflows. Larger businesses may need multi-level approval before a transaction is posted. Payhawk supports configurable approval chains. Soldo’s controls are stronger at the pre-spend stage but lighter on post-spend approval flows.
• Customer support. When a card is declined or a transaction fails to sync, employees need a resolution quickly. Check whether the provider offers phone support or only email and chat, and what the published response times are.

Regulatory status: safeguarding versus FSCS protection. Most dedicated expense card platforms, including Soldo, Pleo, and Wallester, are e-money institutions authorised by the FCA, not banks. This means your funds are safeguarded in segregated accounts under the UK Electronic Money Regulations 2011, but are not covered by the Financial Services Compensation Scheme (FSCS) if the provider fails. This is not a reason to avoid these platforms, but it is worth understanding before loading large float balances.

Common issues and how to avoid them

• Employees not capturing receipts. The most common operational problem. Address it by setting a platform policy that flags missing receipts automatically and requires the employee to resolve the gap before month-end. Some platforms allow managers to freeze a card until outstanding receipts are uploaded.
• Cards used for personal purchases. Category controls and merchant blocks reduce this risk significantly. Ensure the expense policy is clear about what constitutes a valid business purchase and that employees sign an acknowledgement when cards are issued.
• Cards not cancelled promptly when employees leave. Establish a standard offboarding checklist that includes card cancellation. Platforms with HR system integrations can automate this step.
• Budget overruns due to shared cards. Avoid issuing one card to be shared among multiple team members. Shared cards make it impossible to attribute spending to an individual and create reconciliation problems. Issue individual cards instead.
• Incorrect cost centre allocation. Train employees to tag transactions at the point of purchase rather than leaving categorisation to the finance team. Most platforms allow employees to add notes, tags, and receipt photos in the same step.

Final verdict

Soldo is the practical choice for most UK incorporated businesses issuing expense cards to employees for the first time. The prepaid model, per-card spend controls, and native accounting integrations cover the core requirements without IT implementation overhead. Standard plan from £21/month for three users; sole traders are not eligible.

Pleo’s free Starter tier is the right entry point if your team is three people or fewer. The AI receipt capture and automated expense reports are among the strongest in the category at no cost. Move to Essential (£39/month) when the team grows beyond three.

Payhawk fits businesses of 20 or more employees that need multi-level approval chains, multi-entity reporting, and a wider accounting stack. The broader feature set carries a higher price and a longer implementation timeline.

Wallester is the pick if your primary need is card volume: issuing dozens or hundreds of virtual cards at low cost. The limited native accounting integrations are a genuine constraint for high-transaction teams and should be assessed carefully before committing.

Whichever platform you choose, configure spend categories, set per-card limits, and establish a receipt policy before issuing cards. The technology works best when the underlying policy is clear.

Frequently asked questions

Do employees need a credit check to receive a business expense card?

No. Business expense cards issued by platforms such as Soldo, Pleo, or Payhawk are prepaid or linked to the company account, not to the employee’s personal credit. The card is issued under the business’s account and there is no credit check on the individual employee. This makes them straightforward to issue to new starters, contractors, or part-time staff.

What happens if an employee spends beyond their limit?

In most cases, the transaction is simply declined at the point of sale. The employee cannot overspend a prepaid card balance, and per-transaction or per-period limits enforce the same outcome. Some platforms allow managers to receive a real-time alert when a card approaches its limit, allowing a decision to be made before the employee is left in a difficult position with a supplier.

Can expense cards be used for recurring supplier payments?

Yes, and virtual cards are particularly well suited to this. A virtual card can be created with a specific budget and assigned to a single supplier for a recurring subscription. If the subscription needs to be cancelled, the virtual card is deleted and the supplier cannot charge again. This is considerably more controlled than using a shared physical card or the company’s main account details for recurring online payments.

Are sole traders eligible for these platforms?

Eligibility varies by provider. Soldo requires a UK-registered incorporated entity (Ltd, LLP, or registered charity) and explicitly excludes sole traders. Payhawk also focuses on incorporated businesses. Pleo primarily targets SMEs and Ltd companies; verify current eligibility at pleo.io. Wallester’s eligibility for UK sole traders should be confirmed directly with the provider. Sole traders looking for expense management with card issuance may find a business current account such as Tide a more accessible starting point.

How we reviewed this topic

This guide was produced by reviewing publicly available product documentation, pricing pages, and terms from UK expense card providers (Soldo, Pleo, Payhawk, and Wallester) alongside HMRC guidance on employee expense treatment, benefits in kind (P11D), VAT record-keeping requirements, and the UK Electronic Money Regulations 2011. Provider feature descriptions reflect published product information current as of July 2026.

We do not accept payment to alter our editorial assessments. We hold affiliate relationships with some providers mentioned (indicated by sponsored links); these relationships do not influence our recommendations, which are based on product features, pricing, regulatory status, and suitability for the business types described. Pricing changes frequently in this category: verify current rates and plan details directly with each provider before making a decision.

For tax and compliance questions specific to your business, consult a qualified accountant or refer to HMRC’s Employment Income Manual and the FCA register for current regulatory status of any provider you are considering.