My question relates to the preparation of annual accounts for a small UK limited company.
We have receipts for expenses that should have been claimed years ago and were not. The expenses were paid directly by one of the employees and not submitted on an expense form (i.e not refunded to them) in the year the expense was incurred. Some of the receipts go back to 2016. The receipts are for a range of items, for example:
- Travel - air fare,train fare
- Accomodation - hotels
- Software (bought wholly for company use)
Should these receipts simply be recorded in the accounts in exactly the same way as they would be if the expense was incurred in the "current year" and refunded to the employee at the time? Is there some special requirement / different way or recording and reporting these?
Some of the receipts include VAT (which also obviously wasn't reclaimed at the right time). Could/should this VAT just be capitalised now?
Thanks in advance.