Expense management for 200 to 500 staff: what to look for

A business with 200 to 500 staff needs expense software that controls spending before it happens, not just a receipt app. Look for multi-level approvals, ERP integration, company cards with limits, HMRC rates built in and an audit trail. Prices for this size are mostly quoted, so compare on features and contract terms first.

Why do mid-sized firms need different expense software?

At 200 to 500 staff, expenses run across several departments, cost centres and often more than one legal entity. A tool built for 10 people breaks at that scale.

Common pressure points are:

• hundreds of claims a month needing two or more approvers
• spending coded to departments, projects and entities
• finance teams closing month-end against an ERP, not a simple ledger
• HR and payroll needing benefits and taxable expenses reported correctly
• auditors asking for evidence on any sampled transaction

What to look for: a checklist

Use this list when you write a requirements document or score vendor demos.

• Approval workflows by amount, department and expense type, with delegation when a manager is away
• Policy rules in the app, such as caps on meals and hotels, flagged before submission
• HMRC rates built in: 55p mileage and benchmark subsistence rates
• Company cards, physical and virtual, with limits per person or team
• Receipt capture that reads VAT details from the image
• ERP and HR integrations, such as NetSuite, Dynamics 365, SAP or Sage Intacct
• Multi-entity and multi-currency support if you trade abroad
• Single sign-on and role-based access
• Audit trail showing who submitted, approved and paid each item
• Data export you can keep for 6 years

Which HMRC rules should the software apply?

The software should apply HMRC’s approved rates so that payments stay tax-free.

Mileage rates come from GOV.UK’s business travel guidance. Subsistence rates come from HMRC manual EIM30240, which also allows a £10 supplement where a £5 or £10 journey runs past 8pm. Paying above a rate without an agreed bespoke rate is taxable and attracts National Insurance.

Since 6 April 2019 you do not need to check receipts for benchmark rate payments. HMRC manual EIM30225 says you must still run a system for checking that staff made qualifying journeys. Bespoke rates still need a full checking system. Use our mileage calculator and HMRC subsistence rates guide for detail.

How does payrolling benefits from 2027 affect expenses?

Payrolling changes what your expense and payroll systems must share. HMRC’s June 2026 Employer Bulletin says mandatory payrolling applies from 6 April 2027 to company cars, car fuel, vans, van fuel and medical benefits only. Most other benefits follow from April 2028.

Employers can register to payroll other benefits voluntarily from November 2026. The bulletin does not say whether taxable expenses fall in the mandate. P11D and P11D(b) forms remain due by 6 July for anything not payrolled, with Class 1A due by 22 July.

Check that any new expense tool can export taxable items to your payroll software.

How are expense tools priced at this size?

Most vendors quote for 200 or more users. The figures below come from each provider’s own pricing page, checked on 6 November 2026, listed alphabetically.

Payhawk lists native NetSuite, Dynamics 365 and SAP S/4HANA integrations, and sells advanced ERP and extra entities as add-ons. Pleo includes SAML single sign-on on every plan. Soldo’s Unlimited plan adds custom approval workflows and integrations including SAP Concur. For 300 users, Pleo’s Optimise list price works out at £5,400 a month before any negotiated discount.

Our spend management software comparison covers these tools for smaller teams.

Which approach applies to you?

Your structure decides what you need first.

• If you have one entity and a simple ledger, then a per-user card and expense tool with an accounting integration may be enough.
• If you have several entities or an ERP, then shortlist vendors with native ERP links and multi-entity support.
• If most spending is travel, then look for travel booking with automatic per diems.
• If you provide company cars or medical cover, then plan the payroll link before 6 April 2027.
• If you pay bespoke subsistence rates, then make sure the tool supports the checking system HMRC requires.

What to do now

1. Map your current process: claim volumes, approvers, entities and systems.
2. Write your policy rules down so vendors can configure them. See our staff expenses policy guide.
3. Ask three vendors for a quote on the same user count and modules.
4. Test VAT receipt capture on real receipts during a trial.
5. Agree the payroll export with your payroll provider before go-live.

Frequently asked questions

Do we need to keep paper receipts if staff photograph them?

Not for VAT, if the image shows all the details needed. HMRC Notice 700/21 lets you discard the original in that case, and VAT records must be kept for at least 6 years.

What mileage rate can we pay tax-free in 2026/27?

You can pay 55p a mile for the first 10,000 business miles in a car or van, and 25p after that. These rates apply from 6 April 2026.

Do we have to check every receipt for subsistence?

No, not if you pay at HMRC benchmark rates. You must still check that the employee made qualifying travel.

Will expenses have to go through payroll from April 2027?

HMRC has confirmed payrolling from 6 April 2027 for company cars, car fuel, vans, van fuel and medical benefits. It has not said in the June 2026 bulletin whether expenses are included.

How much does expense software cost for 300 staff?

Most providers quote at this size. Pleo’s published per-user prices of £8 to £18 a month give a list cost of £2,400 to £5,400 a month for 300 users.