A self-employed individual is a person who carries on a trade or business as a sole proprietor or independent contractor (or freelancer). It also includes individuals who engage in a particular trade or business on a part time basis.
Self-employed individuals, including freelancers, must take their taxes into account when setting their pricing, consider their tax burden in planning their finances for the year (e.g., saving money vs. reinvesting it in the business) and track their business expenses to deduct them at the end of each month. They also have to file the relevant federal and state tax returns on time in order to avoid paying penalties to the government.
Individuals who work for themselves are legally required to calculate and pay Value Added Tax (VAT), Withholding Tax (WHT) and Personal Income Tax (PIT). When you have employees, you as the employer have certain employment tax responsibilities that you must pay and forms you must file.
However, unlike employees, self-employed individuals do not have taxes automatically deducted from their paychecks. And it can be difficult to keep track of what they owe and pay it on time.
Not only are government forms daunting, but understanding the various taxes and any relevant tax exemptions can be truly complicated.
The FIRS is statutorily empowered to administer and enforce the various tax laws in Nigeria at the federal level. The States’ Governments administer tax through the various State Boards of Internal Revenue, while the Local Government Revenue Committee of each State administers taxes at the local government areas.
The Joint Tax Board (JTB), which is a creation of Personal Income Tax Act serves as an umbrella body covering all tax authorities in Nigeria. The official role of the JTB remains purely advisory.
At UBR Tax, we help you pinpoint deductible expenses you might otherwise miss, streamline the filing process and more easily identify your tax rate.
You can count on our tax experts for advice on tax compliance and tax advisory services.
Our services include:
- Tax Registration services
- Filing of Monthly and Annual Tax Returns
- Employment tax (PAYE)
- VAT/Indirect tax
Our extensive experience provides us with excellent insights into the policies and procedures adopted by tax authorities. We offer a true added value service, working with your businesses to make sure you stay ahead in this ever-evolving environment.