Most tax penalties do not arise from complex disputes. They arise from routine obligations that were forgotten, delayed or poorly documented. A consistent monthly rhythm prevents that.
Value Added Tax (VAT)
Businesses that charge VAT must collect it correctly, keep valid invoices, and file and remit within the period the law prescribes. Track input VAT and output VAT separately every month, and reconcile them to your ledger before filing.
Withholding Tax (WHT)
Where you make certain payments, you may be required to deduct tax at source and remit it. Record each deduction against the supplier, keep the evidence, and issue or obtain the corresponding credit notes. When you are the supplier, keep the WHT credit notes you receive, as they can be offset against your own tax liability.
PAYE
Employers must compute income tax on employee earnings, deduct it through payroll and remit it on time. Maintain up-to-date payroll records, and reconcile remittances to payroll each month.
Companies Income Tax (CIT)
CIT is an annual matter, but preparing for it is a monthly one. Clean, reconciled books all year make the annual computation and filing far smoother, and far more defensible.
A simple monthly rhythm
- Close the books and reconcile bank and control accounts.
- Compute and file VAT for the period.
- Confirm WHT deducted and remit it.
- Run payroll, compute PAYE and remit.
- File supporting documents in an organised, retrievable way.
- Note upcoming annual deadlines so they never arrive as a surprise.
A note on change
Tax rates, thresholds, filing dates and administrative rules are revised from time to time. Always confirm the current requirements before relying on any checklist, ours included. If you would rather not carry that burden, this is exactly the kind of work we take on for clients.