Canada (Montreal)

France (Paris)

Hong Kong 

Singapore

United Arab Emirates (Dubai) 

United States of America (Los Angeles)

How to use HMRC’s overseas subsistence rates 

When it comes to HMRC’s overseas subsistence rates, you have a couple of options for paying your employees: 

• You can pay the 24-hour rate for each complete period of 24 hours. This period starts when the employee arrives at their destination and ends when they leave. For example, if an employee arrives at the airport and starts their journey at 9am, they would be eligible for the 24-hour rate until 9am the next day, and so on.
• You can pay for the accommodation (room rate) along with individual meal rates and other incurred expenses. 

What if your employee is away for less than 24 hours?

You can still use HMRC’s overseas subsistence rates. You’ll just have to divide the period into smaller segments.  

For example, if the period includes an overnight stay, you can pay the room rate, plus the over-5-hour or over-10-hour rates—depending on how long the employee was away. 

Some real-world examples

Let’s look at a couple examples of how you can use HMRC’s overseas subsistence rates to reimburse your employees’ accommodation and subsistence expenses for travel outside the UK. 

Singapore  

One of your employees (let’s call him Matt) goes on a business trip to Singapore. He stays in a hotel for two nights, on a room only basis (i.e., no meals are included). 

Matt arrives in Singapore at 3pm on Monday and leaves on a 9am flight on Wednesday.  

You may reimburse Matt’s subsistence expenses as follows:  

Paris

Someone from your sales team (Sarah), spends a day in Paris for an important meeting. She arrives in Paris at 9am and leaves at 8pm. 

Based on HMRC’s overseas subsistence rates, you can reimburse Sarah’s expenses at the Paris rate of €86.50 (as the trip lasted more than 10 hours). 

If Sarah had left Paris between 2pm and 7pm, your reimbursement would have been limited to the over 5-hour rate: €40. 

Want to keep all your travel expenses in one place? 

Whether you want to track your subsistence allowances in the UK or overseas, Capture Expense will keep everything organised, and in one platform.  

Book a demo today to see how easy it is to submit, track, and manage your expenses—saving you time and keeping you compliant with HMRC’s overseas subsistence rates. 

We know why you’re here. You want the civil service mileage rates in Ireland for 2025. So, without further ado.  

The civil service mileage rates for 2025

Here are the new civil service rates for mileage allowance in Ireland for 2025, set by Revenue, effective from 1st September 2023.  

The rates vary depending on the type of vehicle, which includes cars, motorcycles, or bicycles. They also depend on the distance bands and the mileage allowance rate in euros per kilometre.  

Civil service motoring and bicycle rates

Cars (rate per kilometre)

Motor travel rates (from 1 September 2022) 

For electric vehicles, mileage claims will follow the rate applicable to engine capacity 1201cc-1500cc. 

Reduced motor travel rates per kilometre 

Reduced mileage rates apply to work-related journeys that aren’t solely for job performance. Examples include attendance at approved courses or conferences. 

Motorcycles (rate per kilometre) 

Motorcycle rates (from 5 March 2009)  

Bicycles

Bicycle rates (from 1 February 2007) 

Staying compliant

Now, onto the nitty gritty.

In this guide, we’ll tackle the intricacies of car mileage allowance in Ireland for 2025. From what constitutes a business journey and how to calculate it, to submitting a compliant mileage claim.

Join us as we equip you with everything you need to know about civil service mileage rates in the Emerald Isle.
 

What is a business journey and how do you calculate it? 

A business journey refers to travel undertaken by an employee for work-related purposes. Specifically, when they travel from one place of work to another place of work as part of their duties.

This encompasses: 

• Travel between different countries, such as between Ireland and other countries. 
• Travel to a location that is not their usual place of work.

It’s worth noting that a business journey does not include commuting from home to the normal place of work and vice versa; this is considered private travel.

 Calculating the distance for business travel 

When calculating the distance for business travel, the relevant distance is the lesser of: 

• The distance between the employee’s home and the temporary place of work. 

• The distance between the employee’s normal place of work and the temporary place of work. 

Let’s take a look at an example: 

Imagine that the distance from your employee’s home to a temporary workplace is 50 km. And that the distance from their normal workplace to the temporary one is 30 km.

The business travel distance will be: 30km (the lower of the two distances). 

What’s not included in the mileage allowance?

Not all trips are eligible for reimbursement under the civil service mileage rates in Ireland.

The most common trips which aren’t included are

• Personal trips that aren’t directly related to your employee’s job. 
• Trips between your employee’s home and their regular workplace. 

How to submit a mileage allowance claim in Ireland

To be reimbursed for business-related vehicle expenses, your employees must complete a claim form provided by the company or Revenue. They must also submit evidence of the journeys made in their personal vehicle.

Your employees should keep the following evidence: 

• Receipts for petrol 
• Receipts for parking tolls 
• Any additional receipts pertaining to vehicle usage 
• Addresses visited during travel 
• Purpose of each journey 
• Recorded kilometres driven to and from business travel destinations

You must maintain accurate records of all your employees’ claims and provide full evidence to ensure compliance and avoid issues with Revenue.

It’s worth noting that if you have already reimbursed an employee’s expenses at civil service mileage rates, no additional tax relief will be applicable to the employee. 

How to keep track of your mileage expenses 

It’s essential for both you and your employees to maintain precise records of all work-related trips.

Failure to do so could result in Revenue requesting that these payments be treated as taxable income.

The required records include:  

• Name 
• Address(es) visited during travel 
• Date(s) of the work trip 
• Purpose of the journey  
• Distance travelled 
• The trip’s originating point, planned destination, and final destination 
• Documentation for reimbursement (e.g., receipts or mileage rate) 

FAQs

What is classed as normal place of work?

The normal place of work is where employees usually carry out their job duties. It’s typically where the employer provides the necessary resources for them to work. This might vary depending on the employee’s role. Generally, the normal place of work is not considered the same as where the employee lives. This is unless there’s an objective requirement for them to work from home because their tasks cannot be done elsewhere. If an employee chooses to work from home or if the tasks performed there are minor or administrative, it’s not considered their normal place of work. 

Are sole traders eligible to claim mileage?

Sole traders are not eligible to claim mileage using the civil service mileage rates. Instead, they can only claim for the actual expenses they incur, such as fuel, motor tax, motor insurance, hotels, and related expenses. To do this, sole traders should keep detailed receipts for the business portion of these costs. This ensures that their claims are accurate and compliant with tax regulations. 

Do the civil service mileage rates apply to emergency travel?

Yes, the civil service mileage rates do apply to emergency travel.

When an employee needs to work outside their normal hours to address emergencies requiring immediate attention, you can repay their travel expenses. This includes mileage, which can be reimbursed using the civil service mileage rates.

This reimbursement is tax-free and can be claimed for up to 60 emergencies per year. However, it does not apply to non-emergencies such as covering for absent staff, handling increased workloads, or attending routine events. 

Do the civil service mileage rates apply to voluntary work? 

Yes, organisations with altruistic and non-commercial functions, such as registered charities or sports bodies, can repay travel expenses to individuals working voluntarily and unpaid.  

These expenses are tax-free as long as they are necessary for the individual to perform their work and do not exceed the actual costs incurred. However, the payments must not exceed the civil service rates.

Never miscalculate mileage claims with Capture Expense

Capture Expense ensures compliance with Ireland’s civil service mileage rates by managing cumulative mileage bands and automatically calculating the correct reimbursement rates based on fuel type, engine size, and distance travelled.  

Our platform seamlessly integrates with Google Maps to accurately calculate your employees’ travel distances. It automatically selects the shorter route from either your employee’s home or their normal place of work. This ensures full compliance with Revenue’s guidelines. 

Allow your people to raise, submit and approve their vehicle expenses at any time, from any location through the Capture Expense app and streamline the way your organisation manages spend. Book your personalised demo now.  

Did you know that your employees can claim back hours spent on the road?

Providing mileage allowance for employees who drive for work has become more popular in recent years. However, with HMRC’s many rules and updates, understanding how this process operates can be confusing for both you and your employees. 

This blog aims to offer a complete guide on everything you need to know regarding HMRC mileage reimbursement rates in 2025.

What is HMRC’s mileage allowance?

Car allowance mileage rates allow employees to claim back vehicle expenses for business purposes, covering costs like petrol, road tax, and insurance. Instead of individually calculating wear and tear on each vehicle, HMRC uses standard pence per mile expenses called ‘Mileage Allowance Payments’ (MAPs).  
 
This deduction applies to any employee using their vehicle for business. The purpose is to align with tax regulations, ensuring business costs are tax-deductible and not subject to tax when incurred from a personal account. 

How much is the HMRC 2025 mileage allowance?

With the HMRC set mileage allowance, the same rate is applied for every employee, depending on the type of vehicle they use.  

Calculating business mileage is straightforward. All you need to do is multiply the miles travelled by the mileage rate for your vehicle.

For instance, if an employee travels 18,000 business miles in their car, the mileage deduction for the year would be £6,500 (10,000 miles x 45p + 8,000 miles x 25p)

It’s also worth noting that if they travel with colleagues from the same company, the driver can claim an extra 5p per mile per passenger. 

Let’s take a closer look at each milage allowance  

HMRC mileage reimbursement rates for cars and van

The HMRC-approved mileage rate for cars and vans is £0.45 per mile for the first 10,000 miles per year. After that, it’s £0.25 per mile

For example, if your employee drove 19,000 miles for work this year, they’d receive:

• £4,500 for the first 10,000 miles (10,000 x £0.45) 
• £2,250 for the next 9,000 miles (9,000 x £0.25

For a total reimbursement of £6,750

Hybrid cars follow the same standard rates, while electric cars have a fixed rate of £0.05 per mile, with no limit on mileage. 

HMRC mileage reimbursement rates for motorcycles

If your employee owns a motorcycle, they’re eligible to receive £0.24 per mile when driving for business purposes.

Unlike cars and vans, motorcycles are not subjected to the 10,000 miles limit, which means that going above this threshold does not change the 24p rate.

For example, if your employee drove 5000 miles for work this year on their motorbike, they’d receive

£0.24 x 5000 = £1,200 in tax-free reimbursement.  

HMRC mileage reimbursement rates for bicycles

Those who own bicycles might not be paying for fuel, but still incur costs such as insurance, as well as general wear and tear during use. The government recognises this and awards £0.20 per mile for an unlimited amount of business-related mileage.

For example, if your employee cycled 450 miles for eligible business trips this year, they’d receive

£0.20 x 450 = £90 to in tax-free reimbursement. 

What journeys can employees claim mileage on?

Whether your employees drive to work frequently or occasionally, it is worth keeping track of their mileage and understanding what trips qualify to be exempt from taxes, and which do not.

Business journeys employees can claim:

• Travelling from one office to another. 
• Travelling to a temporary location to conduct business (i.e., meeting a client or attending an event).

Business journeys employees can’t claim:

• The daily commute to a permanent office. 
• Travelling to a location very close by. 

• Any travel undertaken for private purposes, even if work-related activities such as making calls or running errands are included.

The only tax-free method for reimbursing business miles is through the approved mileage allowance. Giving an employee a company car or a fixed sum towards petrol will both be taxed, so be aware here.   
 
Other travel expenses like parking charges and road tolls while using a company vehicle are covered under subsistence expenditure, not the mileage allowance. 

Company cars and vans rates for 2025/26

In the Autumn Statement 2024, the government announced an increase in the van benefit charge, as well as the car and van fuel benefit charges.  

Here are the 2025/26 rates and how they’ve changed from 2024/25. 

What are HMRC advisory fuel rates? 

HMRC advisory fuel rates apply to company-owned cars and serve two main purposes:

1. Reimbursing employees for business travel expenses incurred in a company car. 
2. Managing reimbursements when employees use the company car for personal travel and need to repay the business. 

Company car fuel rates are reviewed every three months and can change based on actual fuel rates. You can only rely on the previous rates for up to one month before switching to the current rates.

HMRC fuel rates are influenced by factors like engine size, manufacturer data on miles per gallon, current fuel prices, and the calculated rate per mile

If your employee is using a hybrid car, it’s treated like a petrol or diesel car. But if they’ve got a fully electric vehicle, they are reimbursed at £0.09 per mile. 

The following tables were taken from HMRC. They’re provided with the purpose of breaking down exactly why fuel rates are at their current numbers: 

 Petrol 

Diesel  

LPG (Liquefied Petroleum Gas) 

In reality, only the size of the vehicle’s engine and its equivalent price per mile matter.

Let’s consider an example where your business owns a company car.

The car has a 1000cc petrol engine, an employee pays for fuel for 3000 business miles per year. Additionally, the same employee uses the company car for personal use for 800 miles per year.

Using HMRC’s advisory fuel rates for petrol cars with engines up to 1400cc at £0.12 per mile:

• £0.12 x 3000 miles = £360 for business use. 
• £0.12 x 800 miles = £96 for personal use.
   

Therefore, your business can claim £360 from HMRC through the fuel advisory for 2025, and you can also recoup £96 from the employee for personal use. 

FAQs 

What vehicles are eligible for mileage allowance? 

Employees are eligible to receive mileage allowance payments for any vehicle they own and have registered with the DVLA, such as cars, vans, motorcycles, scooters, and bicycles, provided these vehicles are used for work purposes. 

When do you need to report HMRC mileage reimbursement rates?

If an employee travels over 10,000 miles, you must report it to HMRC using form P11D. Paying employees more than the approved amount of 45p per mile is also considered a benefit and must be reported on a P11D and taxed. 

What’s the best way to reimburse your employees in 2025? 

Tracking and calculating individual mileage allowances for employees, especially for SMEs with company cars, can be tedious. However, expense management software like Capture Expense, uses accurate reimbursement features to simplify this process by automatically calculating mileage based on journey data and HMRC figures, saving time and effort.

Ready to streamline your mileage allowance process?

Book a demo with Capture Expense today and discover how our software simplifies tracking, calculating, and reimbursing mileage while ensuring compliance with HMRC mileage reimbursement rates.  

Most people love the perks of travelling for work—new places, new faces, and maybe even the occasional upgrade—but let’s face it, nobody enjoys the paperwork that follows.  

Fortunately, HMRC’s subsistence rates make claiming meal allowances a lot simpler for everyone involved.  

For employees, they eliminate the need to meticulously track and save every single receipt from their work trips (because they can claim a set amount for meals and snacks instead). 

For employers, the process is streamlined too. With clear, standardised rates, there’s no need to cross-check endless receipts or worry about overcomplicated expense claims. 

If you’re new to HMRC meal allowances, you’re in good hands. We’ll outline exactly what they are, the rates for 2025, and how to report them.

What is an HMRC meal allowance? 

The HMRC meal allowance, often called a “subsistence allowance,” is a set amount of money you can claim back from your employer (or company) when you’re working away from your usual place of work. It’s meant to cover the cost of meals, like lunch or dinner, during business trips or situations where you’re required to travel for work. 

The key is that the expense has to be “reasonable” and meet HMRC guidelines—so you can’t go all out on a five-course meal at a fancy restaurant, unless it’s within the limits set by your company’s expense policy. 

When do HMRC subsistence rates apply?

 HMRC subsistence rates apply when: 

• You’re travelling away from your usual workplace for business purposes.
• Your business trip requires you to be away for a significant part of the day or overnight.
• You end up with extra costs, like meals or accommodation, because of the travel. 

Imagine you work in sales and have a client meeting in another city. You leave early in the morning and return late at night. During this time, you buy lunch at a café and dinner at a restaurant because you can’t go home to eat.  

You can claim these meal expenses as part of HMRC’s subsistence allowance, as long as they’re reasonable and meet the set guidelines. 

Is meal allowance taxable in the UK? 

No, meal allowances aren’t taxable in the UK. This has been the case since 1998, which means businesses can deduct these costs from their taxable income—potentially leading to lower tax payments. 

Are there scenarios where HMRC meal allowances can’t be deducted?

Yes, meal allowances can’t be deducted if:

• The expenses aren’t directly related to business activities. 
• No actual meal or drink is bought. 
• The meals are included as part of a training course, conference, or similar. 
• The expenses are deemed excessive or lavish. 
• The meals aren’t documented, or receipts are unavailable. 

The HMRC meal allowance rates for 2025

Here are the HMRC meal allowance rates for work-related travel within the UK: 

You can claim up to £25 in total for meals over a 24-hour period. This covers all meals, with a breakdown of £5 for breakfast, £5 for lunch, and £15 for dinner.

For example: if you’re on a work trip and spend £4 on breakfast, £5 on lunch, and £12 on dinner, you’d still be within the £25 daily limit, since dinner can go up to £15. 

What about overnight stays?

If you’re required to stay overnight for business purposes (within the UK), you can claim up to £25.00 to cover incidental expenses. This could include costs such as parking fees at the accommodation, or Wi-Fi charges for personal use. 

International meal allowance rates for 2025 

If you’re travelling outside of the UK for work HMRC has a full list of recommended allowance rates by country. 

Here are a few examples of daily meal allowances in different countries, listed in their local currencies: 

Hong Kong  

Singapore 

France (Paris) 

Spain (Madrid) 

USA (New York) 

How to report meal allowance to HMRC 

The process for reporting meal allowances to HMRC is the same as how you would report your other business expenses.  

At the end of the tax year, you’ll complete a P11D form for each employee who received meal reimbursements. This form details all the expenses that were paid to your employees.  

Additionally, you might need a P11D(b) form to summarise the total expenses and work out any Class 1A National Insurance contributions due. 

You can find a complete guide to reporting expenses and benefits on the HMRC website. 

Also, keep in mind that starting from April 2026, all benefits in kind (including meal allowances) will need to be reported and taxed directly through payroll. 

What happens if you go over HMRC meal allowance rates? 

Let’s look at a real-world example to make it easier to understand. 

 Imagine Sarah, who works for a tech company, and she’s travelling for work in the UK.  

 Her company follows the HMRC meal allowance rates for 2025 (which are £25 per day). On her trip, Sarah spends £35 on a meal—so it’s over the HMRC’s standard allowance by £10.

The company has two options in this situation: 

1. Stick to the £25 HMRC rate: if the company chooses this option, they’ll only reimburse Sarah £25 for her meal. That means Sarah will have to cover the £10 difference herself. This is the simpler approach, as there’s no need for the company to worry about any additional tax or national insurance implications.
    
2. Reimburse the full £35: if the company wants to reimburse Sarah the full £35 (the actual cost of the meal), that’s where things get more complicated. The company would have to make sure they’ve agreed on a higher, bespoke scale rate with HMRC. If they haven’t done this, then the £10 excess over the £25 is considered taxable income, and it would be subject to tax and national insurance.  

Want to keep all your expenses, including meal allowances, in one place? 

Whether you follow HMRC’s meal allowance rates or set your own limits for your employees, with Capture Expense you can easily submit, track, and manage all your expenses. Book a demo today to see just how easy it is. 

A travel expense policy is more than just a list of what your employees can or can’t spend money on, while on the road. 

With the right policy you can simplify your travel and expenses (T&E) reimbursement process, streamline workflows, and set clear spending limits. These are just some of the ways a robust policy can help. The list goes on and on. 

If you’re new to the T&E game, you’re in good hands. We’ll provide you with a clear description of what a travel expense policy is, our guidelines to bear in mind when creating a policy, and our free template to help you get started. 

What is a travel expense policy? 

A travel expense policy is a set of guidelines established by an organisation to regulate and manage costs incurred by employees during business-related travel. There’s no one-size-fits-all policy, because it needs to align with your organisation’s size, needs, and travel history. But a thorough T&E policy outlines:

Booking guidelines 

• Instructions on how, where, and when to book travel. 
• Approved travel management platforms or expense management apps that can handle travel expenses. 
• List of preferred suppliers for travel and accommodation.

Expense coverage

• Clear identification of reimbursable expenses (e.g., transportation, meals, and accommodation). 
• Specification of non-deductible expenses (to avoid confusion later down the line).

Spending limits

• Maximum allowable amounts for various expense categories, such as daily meal allowances or hotel rates.

Reimbursement process

• Step-by-step instructions for submitting expense claims, including required documentation (receipts, travel log etc.). 
• Expected timelines for reimbursement.

Payment methods

• Guidance on using corporate cards, cash advances, and out-of-pocket expenses.

Approval process

• Details of the approval hierarchy for travel requests and out-of-policy bookings.

Is there anything missing from your travel expense policy?

If you think your travel expense policy is missing something, then it probably is.

Ask yourself the following questions (and update your policy if you need to):

• Are there specific times when business travel isn’t allowed, such as during an audit or public holidays?
• What steps will be taken to deal with non-compliance with the policy?
• What guidelines should be in place if someone wants to extend their business trip for personal leave?
• How will the team handle unexpected events, like Acts of God or emergencies? Do employees know who to contact for help?
• Who’s responsible for keeping the travel policy up to date? How often should it be reviewed? 

Not sure whether you need a travel expense policy? 

From the moment you authorise your first business trip, you’ll need a travel expense policy. You should’ve had one in place before that first trip was even booked—but you get the idea. 

Ultimately, the choice is yours. However, after hearing countless stories of business trip mishaps, we’ve concluded that when it comes to travel expenses, what can go wrong, will probably go wrong.   

Here are just some of the things you expose yourself to when you don’t have a travel expense policy: 

• Overspending due to hidden costs that slip through the cracks.
• Late or incomplete expense claims, when employees aren’t clear on the guidelines—or forget to follow them.
• An increase in fraudulent claims, including duplications, exaggerations, and misreporting of expenses, which can go unnoticed without clear rules in place.
• A lack of insights into your company’s spending trends, since without a standard way of tracking and storing expenses, it’s hard to analyse and control your costs effectively. 

5 guidelines to keep in mind when creating your travel expense policy 

1. Involve key stakeholders

Your travel expense policy will touch nearly every employee and department within your organisation. That’s why it’s important to bring different perspectives and expertise to the table from the very beginning.

You need to make sure you get input from your:  

• Finance teams: as they’ll make sure the policy aligns with your budget and compliance requirements.
• HR department: they can provide insight into employee needs and expectations.
• Travel department: they can highlight logistical challenges and suggest practical solutions.

2. Consider employee satisfaction

At the end of the day, your employees are the ones who will be following your travel expense policy. If the policy feels too restrictive or confusing, it can lead to frustration, delays in submitting expenses, and lower morale.  
 
A policy that takes your employees’ needs into account—like allowing some flexibility for reasonable expenses—shows that you value their comfort and judgment. 
 
Don’t forget, happy employees are more likely to stick to the rules.

3. Incorporate an understanding of duty of care

Duty of care is all about looking out for your employees’ safety and well-being while they’re travelling for work.  

Business trips can come with unexpected risks—flight cancellations, unsafe accommodations, or emergencies—and your travel and expenses policy should reflect that you’re prepared to support your employees when it matters most.

A good policy should give clear advice on anticipating, preventing, and responding to potential issues that might arise while employees are on the move.

The goal is to minimise risks by recognising and preparing for them in advance. And if something does go wrong, your policy will outline practical solutions to manage the situation. 

4. Provide easily accessibly resources 

A well-crafted policy goes beyond listing the dos and don’ts. You should consider including the following resources: 

• The policy document: a clear, detailed copy of the travel and expenses policy, ideally available in both digital and printable formats for easy reference.
• Expense claim forms: standardised forms for submitting expenses, whether in digital or printable formats, along with instructions on how to fill them out.
• Reimbursement process overview: a step-by-step guide explaining how to submit claims, what documentation is required, and how long reimbursements typically take.
• Approved vendor list: a list of preferred airlines, hotels, car rental companies, and other vendors.
• Contact information: details of who to reach out to with questions or for assistance, such as the finance or travel management team.
• Training materials: videos, presentations, or workshops explaining the policy and providing examples of how to follow it correctly.
• Expense tracking tools: links or instructions for accessing company-approved expense management software for tracking expenses during trips.
• Policy updates notifications: a process or platform where employees can check for updates to the policy to make sure they’re always informed of the latest guidelines. 

5. Practice continuous improvement

Regularly updating and improving your travel and expense policy is crucial because things change—whether it’s new technologies, shifts in industry standards, or changes in your company’s needs.  
 
By keeping your travel & expense policy up to date, you can make sure it stays relevant and effective.
 
Plus, it gives you the chance to address any issues that have come up, refine areas that might be causing confusion, and adapt to new challenges.  

Capture Expense is here to  support  you every step of the way 

We know that creating a travel policy from scratch takes time, and it can be overwhelming at first. To help you get started you can download our free travel expense policy template.
 
Or, if you want to see how we can streamline your entire T&E process, book a demo here. 

There’s nothing quite like a business trip. Exploring new cities, meeting interesting people, and learning new things. It’s a great way to break up the monotony of the daily grind and add some excitement to your work life. 

But let’s be honest. Nothing quite kills that refreshed, post-trip feeling like coming home to the task of filing a travel expense report. All those receipts, mileage logs, and itemised lists can feel tedious. Necessary? Absolutely. Exciting? Not so much. It’s the paperwork price you pay for all those moments of professional adventure. 

What if we told you that you could manage all your travel and expenses (T&E) in a matter of minutes? What if we told you the whole process could be fully digitised and automated?

Now that we’ve got your attention. Let’s look at what T&E means, some key examples and how you can streamline your entire travel and expense management process.  

What does T&E mean?

T&E refers to the costs incurred by employees or individuals when traveling for business purposes. These expenses typically include transportation, accommodation, meals, and other incidental costs necessary to carry out their work-related duties while away from their usual workplace. 

T&E examples

There’s a lot that can fall under the umbrella of T&E. Let’s break it down:

Transportation 

This includes the big things, like booking flights, train tickets, or renting a car to get to your destination. It also covers smaller, day-to-day transport expenses like taxi rides, parking fees, or public transport passes if you’re getting around in a city.

Accommodation

Your stay is a key part of the budget, whether it’s a hotel, serviced apartment, or Airbnb. Beyond the nightly rate, it might also include any Wi-Fi fees or charges for using business facilities, like meeting rooms—make sure you make it clear in your T&E policy whether this will be included, or comes at the employees own cost.

Meals

Everyone’s got to eat, right? This includes dining out at restaurants, grabbing a quick bite at a café, or ordering room service. Don’t forget about snacks and drinks during the day or those team dinners that turn into great networking opportunities. There’d usually be a set spend limit on how much an employee can claim depending on length of their trip and what meal of the day it is; so make sure this is totally clear before you go out for that gourmet, 3-course meal.

A real-world example

Imagine you’re a sales rep for a tech company. You’re scheduled to fly to San Francisco for a big three-day conference. You book your flight, reserve a hotel room, and rent a car to get around the city. While you’re there, you’ll need to cover the cost of meals and any additional transportation expenses.  
 
All of these costs combined would be considered T&E expenses.

6 T&E challenges and how to solve them

Manual processes 

Processing your travel and expenses manually might seem manageable at first, but it quickly becomes a bottleneck as your business grows. Manual processes are time-consuming, prone to errors, and can lead to your finance teams spending excessive time reviewing claims.

The solution: you should consider automating your entire travel and expense process with a sophisticated expense management system like Capture Expense. It will help you streamline everything from receipt capture and expense submission to policy enforcement and approval workflows—saving time and providing greater control over your expenses. 

Policy non-compliance 

This is a major challenge in managing your travel and expenses because it can lead to overspending and inconsistent claims for your business. Sometimes your employees may not fully understand the policies, or they might accidentally—or even deliberately—submit claims that don’t align with company guidelines.  

So, if you’re wondering whether you need a corporate travel policy. The answer is yes. A robust T&E expense policy is like a roadmap for your business trips. It sets clear guidelines on what expenses are reimbursable, how much you can spend, and what kind of documentation is required.

To help you get started, you can download our free corporate travel policy template. 

Lost receipts 

When it comes to T&E expenses, lost receipts are a huge headache for everyone involved. Your employees can’t claim reimbursements without proof of purchase, your finance teams can’t process the expense, and your managers end up chasing people for missing details.

So, why does this happen so often? Think about it—when you’re traveling, you’re juggling trains, meetings, meals, and taxis. Receipts get crumpled, misplaced, or accidentally tossed out. If you’re relying on manual systems, the problem only gets worse because there’s no backup unless someone took the time to snap a photo or make a note.

The solution? Whether you’re handling finances manually or digitally, it starts with making it easy to capture receipts right away. If you’re sticking to a manual process, encourage your employees to use their phones to take pictures of receipts the moment they get them. For a truly effective solution, though, modern expense management apps are the way to go. They let your employees snap, upload, and categorise receipts in seconds, even while they’re on the move. The data is automatically synced to your accounting system, so there’s no risk of losing it—and no more chasing people for missing paperwork. 

Budget overspending 

Overspending can spiral out of control fast. A little extra here for a last-minute hotel upgrade or an unplanned meal there might seem harmless, but multiply that across dozens of employees and trips, and you’ve got a major dent in your budget.

The problem usually comes down to a lack of visibility and control (but more on that later). If your employees don’t have clear spending limits or real-time guidance on what’s allowed, they might unintentionally exceed budgets. And if your finance teams only see expenses after the trip is over, it’s too late to fix the problem.

The way to deal with budget overspending is proactive planning and real-time oversight. Start by setting clear budgets and policies for travel expenses, so your employees know exactly what’s acceptable.  

Consider bringing in a tool that helps enforce those guidelines in real time. Robust expense management platforms can flag out-of-policy spending instantly, give your employees budget updates on the go, and even alert your managers if someone’s about to exceed limits.

This way, you’re not just reacting to overspending—you’re preventing it before it happens. 

Delayed reimbursements 

Imagine spending your own money on a work trip—flights, meals, taxis—only to wait weeks or even months to get it back. It’s frustrating, especially if the expenses were significant.

For your finance teams, delayed reimbursements are a sign of inefficiency. Processing piles of expense reports, chasing missing receipts, and manually checking for policy compliance takes forever. The longer it takes, the harder it is to manage cash flow and keep your employees happy. 

So, what’s the answer? It all comes down to speed and automation. An expense management system can simplify your entire process. Employees can submit expenses in real time—by snapping a photo of a receipt—and finance teams get all the data they need in one place.  

Poor visibility into spending patterns 

Think about trying to manage all your company’s finances with a pen and paper. It’d be a lot of work, and easy to make mistakes. That’s kind of what it’s like using manual spreadsheets or legacy software for your T&E expense reports.

These outdated methods can’t automatically check if your expenses are within policy limits or if you’ve got the right receipts. It’s all up to you to do the calculations and spot any errors. And let’s be honest, human error is inevitable.

You’re in luck because the solution here, is the same one as all the others: a modern, fully automated expense management system. Tools like Capture Expense can automatically categorise expenses, flag policy violations, and generate accurate reports in real time.  

Are you looking for a platform that can streamline your entire T&E process?

With just a few taps, you can capture receipts, automate employee reimbursements, and manage everything else with ease. Book a demo today and see how we can help streamline your entire T&E process.

Having a corporate credit card is great. You can tap away, and purchases are charged directly to your company’s account.  

But sometimes — especially if you run a smaller business — you won’t have corporate cards, and in that case, you’ll have to pay for business expenses yourself (or “out-of-pocket”). 

The downside of paying for things out of pocket (besides the obvious) is that the logging, tracking and reimbursing of these costs can be time consuming.

That’s why you need to have a good system in place, so all these little expenses don’t turn into big headaches down the line.

Let’s start with a definition for out of pocket expenses and work our way to successfully managing them.

What are out-of-pocket expenses?

Out of pocket expenses are costs you pay yourself for work-related activities. Think of them as money you spend upfront, often with the expectation of being reimbursed later.

Common examples of out-of-pocket expenses

Here are some common examples of out of pocket expenses:

• Work-related travel costs: like paying for fuel, parking, or tolls during a business trip.
• Meals: grabbing lunch or dinner for a client, or while travelling for work.
• Office supplies: picking up stationary, notebooks, or other essentials when your company runs out.
• Accommodation: costs for hotel stays or other forms of accommodation during business trips.

Basically, it’s anything you pay for upfront that someone else is supposed to cover later! That’s right, the examples are endless. 

Let’s look at a real-world scenario

Imagine you’re travelling for a work conference in another city. Your company’s travel department has booked your flight and hotel, but when you arrive at the airport, you realise you’ll need to take a taxi to the hotel. You pull out your wallet and pay for the ride yourself since it’s not prepaid.

Later, you keep the receipt and submit it to the travel department for reimbursement. That taxi fare is an out-of-pocket expense because you paid for it upfront, even though it’s technically a business expense. 

How to manage out–of–pocket expenses

First things first, you need to ask yourself whether you plan on managing your out of pocket expenses digitally or manually. There are pros and cons to each method (which we’ll cover shortly) but generally if you can digitise any part of your workflow, it’s usually worth doing.

Digital vs manual: how should you manage your out–of–pocket expenses?

Managing your out–of–pocket expenses digitally

Managing your out–of–pocket expenses manually

Let’s look at the steps you need to take to manage your out of pocket expenses effectively:

Step 1: Record your out-of-pocket expenses as soon as they happen

Don’t let your receipts stack up—it’s a disaster waiting to happen.

If you’re using a sophisticated expense management platform like Capture Expense, all you have to do is snap a photo of your receipt, and let the software do the heavy lifting for you. It’ll extract all the necessary details and send them straight to your accounting system.

Prefer manual entry? That’s okay too! Just make it a habit to jot down expenses as soon as you can—whether in a notebook or spreadsheet. 

If immediate logging isn’t realistic (even if it’s just a case of taking a quick picture), set a weekly or monthly calendar reminder to process your expenses.

Step 2: Categorise your business expenses

Categorising your business expenses is key. Think of it like sorting your clothes into different drawers. You wouldn’t just throw everything into one pile, right?

Here’s how to categorise your expenses:

1. Create a system: divide your expenses into different categories that are specific to your industry and the way you do things. 
2. Stay consistent: once you’ve established your categories, stick to them. This will make it easier to track your spending and identify trends. 
3. Use software to automate the entire process: while some providers offer this service, Capture Expense’s AI-powered matching feature is a game-changer when it comes to categorising your expenses. Whenever you upload receipts, or process corporate card transactions in the app, it automatically assigns the correct expense category.  

Some common examples of business expense categories

Here are some of the most common business expense categories. Pick and choose which ones you think will be a good fit for your specific company:

• Travel    
• Meals and entertainment 
• Advertising and marketing  
• Office supplies   
• Utilities   
• Employee benefits    
• Training and development  

Step 3: Keep track of all your receipts 

Don’t let your receipts slip through the cracks! Whether it’s a physical receipt or a digital one, make sure to keep them safe.

They’re your proof of purchase and are crucial for:

• Reimbursements: if you’ve paid out of pocket, the receipt is what you’ll use to get your money back.
• Tax time: if you’re deducting business expenses, HMRC might ask to see proof. Without receipts, you could lose out on valid deductions.
• Audits: no one likes the word, but audits happen. Keeping receipts guarantees you’ve got all your ducks in a row if your finances are ever questioned. 

Step 4: Consider prepaid or company credit cards

Let’s talk about why prepaid or company credit cards can be a game-changer for managing out of pocket expenses.

Here’s the thing: paying for work-related stuff with your own money can get messy. You’re dipping into your personal funds, trying to remember what needs reimbursement, and it can take forever to reconcile everything. That’s where prepaid or company credit cards come in. 

Here are 4 reasons why you should consider them:

No more out-of-pocket spending

Imagine this, instead of paying for that client lunch or travel ticket from your own pocket, you just use the company card. No personal funds are involved, so there’s no waiting around for reimbursement.

Better cash flow management

Prepaid cards, in particular, let you load a set amount of money each month. It’s like giving yourself or your employees a spending allowance that’s easy to track. Plus, since it’s prepaid, there’s no risk of overspending.

Simpler tracking

Every transaction on the card is automatically recorded. You can pull up the statements to see exactly what’s been spent and where—no more hunting through receipts or cross-referencing expenses with personal accounts.

Reduces admin burden

If you’re managing a team, prepaid or company credit cards eliminate the need for employees to pay out of pocket and then submit reimbursement forms. It streamlines the whole process.

For example

Say you run a small business and one of your employees needs to buy materials for a project. If they use their own money, they’ll need to file an expense claim, provide receipts, and wait for reimbursement—meanwhile, you’re stuck processing all of it. 

Now, if they have a prepaid card loaded with £500 for project expenses, they can use that directly. No personal money involved, no reimbursement headaches, and you’ve already capped how much they can spend. 

Things to watch out for

• For prepaid cards: make sure you top them up as needed and monitor balances to avoid any “insufficient funds” hiccups.
• For credit cards: pay the balance in full each month to avoid interest charges. And if multiple employees are using them, set clear spending guidelines to prevent misuse. 

Step 5: Review your out-of-pocket expenses  

Reviewing your out of pocket expenses regularly is like giving your finances a quick health check—it helps you stay on top of things and avoid surprises. 

Catch forgotten expenses 

It’s easy to forget small things like a coffee for a client meeting or a parking fee. When you sit down regularly (say, once a month), you can check receipts, bank statements, or your expense management app to make sure nothing’s been missed. 

Spot patterns in spending

When you review expenses, you start to see where your money’s going. Are you spending more than expected on travel? Is your coffee budget out of control? Regular reviews let you spot trends and decide if adjustments are needed. 

Stay prepared for taxes or audits

Keeping everything up to date means that when tax season rolls around (or if there’s ever an audit), you’ve got your expenses clearly documented. No scrambling for receipts or trying to remember what that £30 charge was for six months ago. 

Are you on the lookout for an app that can simplify and automate your out-of-pocket expenses?

If managing out of pocket expenses feels like a chore, Capture Expense is here to change that. With our app, you can snap receipts, categorise expenses, and let the automation handle the rest—no more manual logging or misplaced receipts.

Book a demo today to see how we can save you time, simplify your process, and give you back control of your finances.  

What’s the one thing all businesses have in common? They’re all chasing the elusive “work-life balance.” No, well probably, but the answer is: they have to keep track of the money that’s coming in and the money that’s going out. 

And you’re no different. If you don’t keep track of your business expenses, you risk running into financial trouble. It’s like trying to drive a car without looking at the fuel gauge – eventually, you’ll run out of gas and get stranded. 

The trick is you need to be able to identify and accurately categorise your business expenses. 

Let’s take a look at the different types of business expenditures, which expense categories they fall into, and most importantly, how you can categorise your business expenses.

The different types of business expenses

It’s pretty black-and-white when it comes down to it, you have deductible and non-deductible expenses.

Deductible expenses can be subtracted from your taxable income, reducing your overall tax liability. Non-deductible expenses, on the other hand, can’t be deducted from your income. 

Examples of deductible expenses

• Travel expenses: you can claim expenses for fuel, parking, train, or bus fares if the travel is for business purposes. 
• Office expenses: these include costs like rent, utilities, office supplies, and equipment. 

Examples of non-deductible expenses

• Personal expenses: costs that aren’t directly related to your business, such as personal travel or entertainment. 
• Fines and penalties: costs incurred due to legal violations or non-compliance with HMRC. 

What are business expense categories?

Business expense categories are basically different groups that help you organise your finances. 

You need to bear in mind that they aren’t one-size-fits-all – different businesses have different categories based on what they do. 

For example, if you run a restaurant, your categories might include rent (for your restaurant), wages (for your kitchen staff/bar staff) and inventory (for your food and drink orders). 

If you run a software company, your categories will be totally different. These could include research and development, marketing, and security. 

With that in mind, you’ll need to create expense categories that suit your business and the industry you’re in.  

The 10 most common types of business expense categories

To help you get started, we’ve outlined some of the most common business expense categories. Pick and choose which ones you think will be a good fit for your specific company:

• Salaries and wages  
• Employee benefits   
• Training and development 
• Rent  
• Utilities  
• Office supplies  
• Insurance   
• Advertising and marketing  
• Travel   
• Meals and entertainment

How to categorise your business expenses

Categorising your business expenses doesn’t have to be too complicated. Here’s our easy to follow four-step guide: 

Step 1: Identify your business expense categories

It’s a bit of a no-brainer, but as we already covered above, you should start by thinking about the different areas where your money is spent.  

You’ll want to categorise expenses that directly, and indirectly, relate to your business operations. 

Next, break them down by what makes sense for your business—this might include categories like travel, rent, insurance, and more.

Step 2: Choose a tracking method

Next, you’ll need to decide how you’ll keep tabs on these expenses.  

If you prefer a hands-on approach, you might track everything in a spreadsheet, where you can manually enter each transaction. But if that’s a bit too old school for you, you can automate the process to save time. 

Accounting software like QuickBooks or sophisticated expense management platforms like Capture Expense can do much of the heavy lifting for you.  

These tools automatically categorise many expenses, and you can tweak the categories as needed.

Step 3: Schedule regular reviews

It’s not enough to just track expenses—you need to keep on top of them.  

Make it a habit to review your financial accounts regularly, whether it’s once a month or every quarter. During these reviews, check that all transactions are recorded correctly and reconcile your accounts to make sure everything adds up.  

This way, you’ll catch any discrepancies before they become bigger problems.

Step 4: Assign expense categories to each transaction

As you go through your transactions, make sure each one is assigned to the correct category. This may feel tedious, but it’s key to generating accurate financial reports. 

Over time, this categorisation will help you spot trends in your spending and see where you can make adjustments. 

Automate your expense categories with AI-powered category matching 

Capture Expense’s AI-powered matching feature is a game-changer for your finance teams. Whenever you upload receipts or process corporate card transactions in the app, it automatically assigns the correct expense category. 
  
Book a demo today if you want to automate your business expense categories.

Selecting an expense management solution to track and handle all your company’s requirements is an essential and strategic choice. To help you make the right decision for your business, we’ve compiled a list of the best expense management software solutions in the UK for 2024 so that you can find the best product for you, your team and your business.

What is expense management software?

What do you need from your expense management software?

Top 10 best expense management software solutions 2024

What is expense management software?

Expense management software allows you to save valuable time and money by automating your expense approval process.

The right expense management tool will allow you to track, process, and reimburse employee expenses and simplify the submission of claims for costs such as travel, meals, or supplies, while ensuring your teams comply with your policies.

What do you need from your expense management software?

Relying on old fashioned expense management processes, paper receipts and spreadsheets could be costing you time, money and energy.

Not all solutions are built equally, but the best will come equipped with features such as:

Corporate card reconciliation

Link your business cards to your expense management solution and escape the tedium of manual reconciliation. A good tool should capture and categorise transactions automatically and in real-time.

Vehicle mileage tracking

Your expense management tool should create accurate travel logs for every journey your team may take and the best tools will help you to report on the carbon emissions generated, allowing you to reduce your carbon footprint.

Receipt scanning

Say goodbye to the paper trail with  a receipt scanner which can extracts your team’s spend data in real-time and automatically generates expenses—so you don’t have to.

Reimbursements

The right tool will offer automated reimbursements for your team, allowing you to effortlessly create and submit expenses with justa few clicks.

Reporting

Gain valuable insights into into spending trends, budget adherence, and potential savings.

Integrations

Whether you’re using Xero, QuickBooks, Sage or any other accounting software, you should look for software that seamlessly integrates with your existing system

Compliance

Ensures that your organisational rules are enforced in real time, look for a system which can automatically flag any out-of-policy expense claims and avoid both costly oversights and compliance headaches.

Top 10 Best Expense Management Software Solutions in the UK 2024

• Capture Expense
• Moss
• ExpenseIn
• Pleo
• Rippling
• Tide
• Navan
• Zoho Expense
• Payhawk
• Expensify

Capture Expense

Capture Expense is the ultimate expense management software for simplifying corporate spend and boosting your bottom line. Capture Expense allows businesses to efficiently track and report expenses, providing clear and comprehensive insights into their financial activities.

Features:

• AI Powered reporting: Get instant detailed breakdowns of spending by mileage, user, total expenditure, and more.
• Fully customisable: Tailor your solution to your existing team, processes and schedule.
• Receipt scanning: Simply snap a photo of your receipt, and our intelligent system takes care of the rest.
• WhatsApp integration: WhatsApp Integration ensures effortless expense submission for everyone, regardless of their location or device.
• Global support: Empower your teams to spend anywhere, any time with the expense management system built especially for international spending.
• Automated reimbursements: Approve your teams’ submitted expenses on-the-go or at-your-desk, with full functionality on both mobile and desktop.
• Business Mileage Tracking: Create seamless and accurate travel logs as our powerful APIs record journeys and distance on your team’s behalf.
• Proactive HMRC and VAT compliance: We consistently update our tax and fuel rates with HMRC guidelines, and you have the flexibility to record personalised business rates.

Book a demo with Capture Expense

Moss

Moss is a comprehensive expense software platform tailored for small to medium-sized businesses (SMBs), offering features like customisable employee cards with adaptable spending limits and approval workflows.

Features:

• Customisable employee cards: Adaptable spending limits and approval workflows.
• Budget visibility: Full oversight of budgets for better cost control.
• Integration with accounting software: Automated month-end closings with real-time syncing and spending categorisation.

Learn more

Expensein

ExpenseIn is a powerful and user-friendly expense management platform designed to simplify tracking, approval, and reporting of business expenses.

Features:

• Automatic receipt scanning: Reduces manual data entry.
• Compliance enforcement: Flags policy errors and discrepancies.
• Real-time notifications: Managers can approve or reject expenses from anywhere.

Learn more

Pleo

Pleo offers both virtual and physical cards for business, which employees can use for in-person or online purchases, and Pleo’s app automatically categorises spending and simplifies the receipt submission process.

Features:

• Automation of business spending: Manages reimbursements, mileage, and subscriptions.
• Virtual and physical cards: Employees use for in-person or online purchases.
• Automatic categorisation: Simplifies receipt submission via app uploads.

Learn more

Rippling

Rippling’s expenditure app excels at managing global spending, supporting inputs and reporting in over 130 currencies while reimbursing employees across more than 100 countries.

Features:

• Global spending management: Supports over 130 currencies and employee reimbursements in 100+ countries.
• Automated approval chains: Updates automatically as organisational structures change.
• Customised policies: Enforce specific rules with minimal manual oversight.

Learn more

Tide

Tide Credit Cards offer businesses an easy and efficient way to manage company spending by issuing team members personal business cards with set spending limits.

Features:

• Personal business cards: Employees receive cards with set spending limits.
• Real-time tracking and control: Integrated with the Tide app for live updates.
• Streamlined approvals: Simplifies transaction approvals and record-keeping with accounting tools.

Learn more

Navan

Navan offers automated categorisation, real-time visibility, and streamlined reconciliation, reducing the manual burden on finance teams.

Features:

• Automation: Categorisation, real-time visibility, and reconciliation reduce manual effort.
• ERP integration: Seamless data transfer with existing systems.
• Compliance support: Automatically flags out-of-policy transactions.

Learn more

Zoho Expense

Zoho Expense supports multi-currency and multi-location capabilities, which is particularly useful for global businesses and integrates seamlessly with other Zoho products, such as Zoho Books and Zoho CRM.

Features:

• Travel and expenditure management: Automates processes for efficient tracking.
• Multi-currency and multi-location support: Ideal for global businesses.
• Integration with Zoho and third-party tools: Works with Zoho Books, Zoho CRM, QuickBooks, Xero, and Microsoft 365.

Learn more

Payhawk

Payhawk is an all-in-one platform integrating features like mileage tracking, corporate cards, invoice management, and multi-entity management, with customised approval chains, spend policies, and real-time reporting.

Features:

• All-in-one platform: Includes mileage tracking, corporate cards, and invoice management.
• Automatic categorisation and VAT calculation: Reduces manual effort.
• Customised approval chains: Set up spend policies and get real-time notifications for better control.

Learn more

Expensify

Expensify enables users to automate the creation of reports through features like SmartScan, which allows employees to simply snap a photo of receipts for automatic transcription.

Features:

• SmartScan: Allows employees to snap photos of receipts for automatic transcription.
• Credit card linking: Transactions are imported directly for easier tracking.
• Automated approvals and next-day reimbursements: Fast, accurate payment processes.

Learn more

Need to know more?

A great expense management tool should save you time, money and energy, the examples above can help but we also know you may have more questions.

If you need to know more, feel free to take a product tour or book a demo with our team today.