Record a withholding tax certificate

Many clients withhold tax from what they pay a professional firm and pay it to KRA for you. Until their withholding certificate arrives, the amount is still on their account. Recording the certificate credits their account and keeps the tax for you to claim from KRA.

“Deductions waiting for a certificate show here once recorded on a payment.” At Mizani Associates, billing and credit control then collects the certificates.

Steps

1. Open the certificates to collect

   Tap Withholding certificates to collect on your home page, or open Practice › Billing and its Tax withheld tab: “Clients who paid net of withholding tax or withholding VAT and have not sent the iTax certificate. Recording the certificate credits their account and keeps the tax credit.” Each row shows the client, the tax, the amount and when it was withheld, with the days since.

2. Remind the client, if the certificate is late

   Tap Remind. Kila sends the client a reminder and says “Reminder sent to Imara Security Services Ltd.”

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3. When the certificate arrives, tap Record

   The dialog Certificate from the client says which tax it is and when it was withheld, and fills in the Amount. Type the Certificate number from the iTax certificate and check the Date.

4. Tap Record

   Kila credits the client’s account and says:

   Kila shows:

   Recorded

   Withholding income tax of KES 1,250.00 recorded against Imara Security Services Ltd’s account.

   The row leaves the list.

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Not available yet

A reminder that goes by SMS is kept in the message log but does not reach the client’s phone yet: SMS is in test mode until an SMS provider is connected. Email reminders go out.

A certificate with no deduction recorded

A manager can also record a certificate straight from the Clients tab of Practice › Engagements: tap Withholding in the client’s row. Tax withheld by the client: “From the withholding certificate the client gave you. It is credited to their account and held as tax recoverable from KRA.” Choose the Tax (at Mizani Associates, Withholding income tax (5%) or Withholding VAT (2%)), type the Certificate number and the Amount withheld, or the Invoice amount it was withheld from, which “Fills in 5% of it.”

What if

Kila says the certificate is already recorded

Kila shows:

That did not go through

Certificate 0101202610… is already recorded.

Each certificate number is recorded once. Check the number on the certificate: it may have been recorded already, from the Billing page or the Clients tab.

Needs a manager

Recording certificates is for billing and credit control and the firm’s managers. The firm’s books keep the tax as recoverable from KRA.

Related

• Remind a client about overdue invoices: the same Clients tab.
• Run the month-end billing: the Billing page’s other tabs.
• Credit controller: billing and credit control’s day.

Next: Remind a client about overdue invoices.