Five expense management trends UK finance teams must prepare for in 2026

UK finance teams are entering a year of intensified regulatory demands, greater scrutiny around fraud, and rising expectations from employees. With updates to FRS 102 now in effect, ongoing tax reforms, and pressure to strengthen compliance under Payment Services Regulation reviews, businesses are re‑evaluating how they track, approve, and analyse expenses.

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Capture Expense

3 February 2026

According to James Rowell, Founder of Capture Expense, expense management is fast becoming a core compliance and cultural‑governance function for UK organisations in 2026.Below are five key trends that will define the year ahead.

1. Sustainability moves from reporting to real-time action

The pressure to meet tighter ESG disclosure requirements (including alignment with ISSB‑based standards) means businesses can no longer treat sustainability reporting as a once‑a‑year activity. For finance teams, this will require more accurate data capture at the point of submission, particularly for high‑impact categories such as business travel.“For sustainability reporting to be credible, it has to be built into everyday processes, and not just retrofitted at year end,” says Rowell. “Linking travel and expense data to recognised carbon factors at the point of entry gives finance teams the accuracy, auditability, and visibility regulators increasingly expect.”

2. Fraud prevention becomes proactive and digital‑first

Expense fraud remains a major threat. According to Association of Certified Fraud Examiners, UK businesses are losing millions each year through falsified receipts, inflated mileage claims, and misuse of company cards. In 2026, organisations will shift from manual spreadsheet-based checking to layered approvals, automated detection tools, and more targeted auditing cycles.Finance teams should prioritise higher-risk groups such as frequent travellers and high-spend departments. Anonymous reporting channels and clearer ethics training will also play a growing role in reducing undetected fraud.

3. Smarter automation, not blind adoption

AI-drive tools and automated workflows will continue to transform expense processing, but with regulators pushing for greater auditability, business will be far more selective about the platforms they adopt. Data security, vendor due diligence, and GDPR alignment will all shape decision -making.“Automation only works when the underlying controls are sound,” Rowell explains. “Businesses should start small, things like mileage calculations or invoice capture, and ensure every tool they adopt is compliant, auditable, and supported by human oversight. That balance is what keeps automation from becoming a compliance risk.”

4. Data-driven decision-making becomes essential for forecasting

With FRS 102 updates bringing more leases onto the balance sheet and introducing a revised revenue-recognition approach, finance teams need real-time visibility of spend patterns to maintain compliance and forecast accurately.In 2026, expense data will serve as a major asset for operational intelligence. Finance teams will track behavioural trends, identify potential breaches before they escalate, and work more collaboratively with HR and procurement. Insights such as travel spending versus carbon impact will help organisations balance financial goals with sustainability obligations.

5. Making expense management a workforce advantage

Hybrid work continues to change employee expectations around clarity, consistency, and turnaround times. Slow approvals and unclear policies undermine trust, especially among teams that are separated.Capture Expense’s latest Trends Report analysed more than 371,000 expense claims worth a combined total of £60 million, submitted across 460 UK organisations. It found that a mere 2.6% of claims were approved immediately, indicating that approval processes are slowing down. A lack of transparency around what qualifies as an acceptable expense is one of the contributing factors behind these delays.Expense management is evolving into a strategic function. One that touches compliance, culture, risk, and workforce experience. As regulations tighten and expectations rise, organisations relying on manual or ambiguous processes will struggle to keep pace. Those that invest in secure, integrated, and data‑driven systems will gain sharper visibility, stronger controls, and a clear competitive advantage in 2026.

About Capture Expense

Capture Expense is a cloud-based expense management platform that makes life easier for finance teams, employees, and the whole business. With mobile-first tools, AI-powered reporting, and seamless integrations with systems like Xero, QuickBooks, Sage, and SAP, it simplifies how companies handle spending.Finance teams get powerful reporting and control, employees get a smooth, easy experience, and the company benefits from better accuracy, and cost-savings.

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