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Threshold diagnosis and a full small-business compliance pack

The capstone project for Small Business & Sole Trader Tax (Nigeria 2026) — a free Business course. Pass it and you earn a certificate anyone can verify.

Start the course free Download the project workbook

The project unlocks once you complete the lessons. The workbook is free to download now so you can see exactly what is expected.

What you will submit

A shared Google Sheet or Doc link containing: (1) a four-business threshold diagnosis naming the exact disqualifying test for the two trap cases; (2) a sole-trader versus limited-company computation worked band by band with a reasoned recommendation; (3) a four-person payroll table and a complete compliance calendar including nil returns; and (4) a record-keeping system, a sample compliant invoice, and an e-invoicing readiness note.

What to do, step by step

  1. PART 1 — Diagnose four businesses. For each of the following, state (a) whether it is a 'small business' under the Nigeria Tax Administration Act definition and why, (b) whether it qualifies as a 'small company' and can rely on 0% companies income tax, and whether the 4% development levy applies to it, (c) whether it must charge VAT, and (d) whether it must deduct withholding tax from its suppliers. Businesses: (1) 'Ogechi Provisions Ltd' — wholesale foodstuff, turnover ₦88,000,000, fixed assets ₦31,000,000, limited company. (2) 'Adeyinka & Co' — a firm of accountants, turnover ₦22,000,000, fixed assets ₦9,000,000. (3) 'Northgate Printing Ltd' — turnover ₦34,000,000 but fixed assets of ₦295,000,000 in presses and a building. (4) 'Kelechi Fabrics' — a registered business name (not a company), turnover ₦19,000,000, fixed assets ₦4,000,000, owner draws everything personally.
  2. For business (2) and business (3), explain in one or two sentences EXACTLY which part of the definition disqualifies them — these are the two traps most people miss.
  3. PART 2 — The structure decision. 'Kelechi Fabrics' from Part 1 now makes ₦7,000,000 of annual profit and the owner pays ₦1,600,000 a year in rent. Compute the owner's total 2026 tax (a) as it stands, as a sole proprietor, and (b) if the business incorporated as a limited company qualifying for 0% CIT, with the owner drawing a ₦5,000,000 annual salary (assume basic+housing+transport is 60% of gross and basic is 40% of gross). Show both computations band by band using the 2026 rates, state the difference in naira, and then give a short recommendation that also weighs the costs of incorporating.
  4. PART 3 — The compliance pack. For 'Ogechi Provisions Ltd' (from Part 1), which has four staff earning ₦180,000, ₦130,000, ₦95,000 and ₦70,000 a month, all resident in Abia State, build: (a) a payroll table computing each employee's monthly PAYE under the 2026 bands, assuming basic+housing+transport is 60% of gross, basic is 40% of gross, and declared annual rents of ₦600,000, ₦480,000, ₦360,000 and ₦240,000 respectively; and (b) a complete compliance calendar listing every obligation, the authority it goes to, the frequency and the exact due date — including the returns it must file even where the tax is nil.
  5. PART 4 — Records and readiness. Design the record-keeping system you would set up for Ogechi Provisions Ltd: name the records you would keep, what evidence goes in each, and how long it is retained. Then design a sample sales invoice for the business showing every field a compliant Nigerian invoice must carry, and write 100–150 words on what the company should do now to be ready for e-invoicing when it reaches businesses of its size.
  6. Put everything in one shared Google Sheet or Google Doc, set link sharing to 'anyone with the link can view', and submit the link.

Files to work with

Project workbook (fill in, then submit)The whole brief, an evidence checklist, the grading rubric as a self-check and the link-sharing steps in one file. Opens in Word, Google Docs or WPS.Word · 7 KB

How it is graded

CriterionWeight
All four businesses are correctly diagnosed against BOTH tests — with the professional-services exclusion identified for the accountancy firm and the ₦250,000,000 fixed-asset breach identified for the printing company25%
The ₦100,000,000 turnover and ₦250,000,000 fixed-asset tests are applied correctly and consistently to BOTH the VAT position and the 0% companies income tax position, and the development levy is correctly ruled out for every qualifying small company15%
The sole-trader versus company computation is correct and graduated — 2026 bands applied slice by slice, rent relief computed as the LOWER of ₦500,000 or 20% of rent, the difference stated in naira, and the costs of incorporating genuinely weighed20%
The payroll is accurate under the 2026 bands, the minimum-wage employee is correctly treated, and PAYE is correctly routed to the Abia State revenue service15%
The compliance calendar is complete and accurate — correct authorities, frequencies and exact due dates, and it explicitly includes the returns that must be filed even where the tax is nil15%
The record-keeping system, sample invoice and e-invoicing note are practical and complete — the invoice carries Tax IDs and a unique sequential number, and the whole pack is organised and usable by a real business10%

You need 65% overall to pass. A failed submission comes back with feedback and can be revised and resubmitted.

Before you submit: make your link public

If your work lives in Google Drive or Google Docs, open Share → General access and change “Restricted” to “Anyone with the link” (Viewer). Then paste the link into a private browser window: if it opens without sign-in, you are ready. A private link cannot be graded — it is the single most common reason a good project fails.

Frequently asked questions

Do I have to finish Small Business & Sole Trader Tax (Nigeria 2026) before submitting the project?

Yes. The submission screen opens once every lesson in Small Business & Sole Trader Tax (Nigeria 2026) is marked complete. The lessons are where the methods, the Nigerian context and the worked examples the project depends on are taught.

How is the project graded?

An examiner scores each rubric criterion from 0 to 100 and weights them as shown on this page; you need 65% overall to pass. Most submissions are graded within minutes and you get written feedback on what was strong and what to improve.

Can I resubmit if I fail?

Yes. A failed project comes back with feedback; revise the weak parts and resubmit. A passed project is final — the certificate is issued and cannot be re-rolled.

What do I actually submit?

A write-up of what you did (under 5,000 characters) plus a public link to your work — a Google Drive folder, Google Doc, spreadsheet, GitHub repository or video. The link must open without sign-in; a private link cannot be graded. The free project workbook on this page walks you through all 6 steps.

Is the certificate real?

Yes. Passing this project issues a certificate with a unique verification code. Anyone — an employer, a client, a school — can open the verification page and see that the certificate is genuine and which project earned it.

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Small Business & Sole Trader Tax (Nigeria 2026) is free and self-paced. Finish the lessons, complete this project, and the certificate is yours to share.

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