SELF

ASSESSMENT

THE new tax return has been out for about six weeks, complete with a heartfelt plea from the Inland Revenue for people to make an early start to filling it in.

It is doubtful whether self-assessment, which is the most radical reform to the tax system to take place for many decades, will be popular. In the US, which also has penalties for late submission, the whole country suffers something like a mass panic attack as the deadline nears. Admittedly in the US every adult is obliged to fill in a form, whereas in this country the numbers are less. However, with eight-and-a-half million forms having been distributed, the amount of people affected is substantial.

A Revenue spokesman says: ''We had an advertising campaign for two years prior to the launch of self-assessment and were very successful in achieving a high level of awareness among the target groups, such as the self-employed, who will be affected. The whole process has gone quite smoothly. However, recently we have withdrawn from public comment because of the General Election campaign, but now it is over we will be raising the profile of self-assessment.''

Tom O'Connell, who is senior tax partner with chartered accountancy firm Grant Thornton, is less sanguine about the new system. ''The size of the form is daunting. It is easy to make a mistake by putting details in the wrong box. The trial which the Revenue ran in Leicester showed that less than a quarter of those who calculated their own tax did so correctly.''

For those who want the Revenue to work out the tax they are due to pay, the deadline is September 30. If taxpayers, or their advisors, want to calculate the amount themselves, extra time is available with returns required by January 31, 1998.

''If people want help to calculate their tax, I think most firms would want the client to supply them with the correct information about three months before the filing date,'' Mr O'Connell advises.

One of the first things that people will have to think about is whether supplementary pages are required. The basic tax return will have to be filled in by all of those who receive one, but for those who are self-employed, in partnership or had income from trusts, share schemes or land, extra pages must be ordered from the Revenue.

Its orderline is on 0645 000404 and is open seven days a week from 8am to 10pm. The Revenue also offers advice on how to fill in the form. During office hours you should contact it using the number in your local phone book. From 5pm to 10pm on weekdays and from 8am to 10pm at the weekends, you can call its special helpline on 0645 000444.

Mr O'Connell thinks that accountants and financial advisers will have an increasingly important role to play in helping people with the new returns.

He maintains: ''Self-assessment is only one aspect of an individual's financial affairs. A financial adviser can help to reduce tax through proper financial planning for many of those affected by self-assessment. The adviser can also help if the individual happens to be picked out by the Revenue for an audit. It will be conducting these on a random basis.''

Grant Thornton has produced a free cassette called Self-Assessment: What you should expect from your tax adviser. It includes contributions from Vincent Duggleby, of Radio 4's Moneybox, and other experts. It is available from Grant Thornton, 114 West George Street, Glasgow G2 1QF.