In 1789 Benjamin Franklin said, "In this world nothing can be said to be certain except death and taxes".

If you are not planning an early demise then you'll have to think about the latter now. Under current Tax Legislation you are required to submit tax returns for each tax year (ending 5 April) to the Inland Revenue by 31 January latest following the end of the tax year.

If you have a UK Tax liability or responsibility you must notify the Inland Revenue within twelve months of the end of the Tax Year of any new source of income. The tax return for the year to 5 April 2001 therefore needs to be filed with the Inland Revenue by 31 January 2002.

If the Inland Revenue receive your tax return after 30 September 2001, but before 31 January 2002, then it is up to you to calculate your own tax and make appropriate payments. Under Tax Legislation, you are required to make payments as follows, the dates relate to a tax return for the year to 5 April 2001.

Confused? You will be!

The payments on account are based on the previous tax year (5th April 2000) and on the income for the previous tax year. If you consider that your income for the current year will be lower than that for the previous year, then the appropriate claim has to be made to the Revenue for a lower payment to be made.

Under payment or late payment may lead to interest and surcharges being imposed. Tough new tax laws that come into force for the first time next month could land tax evaders with a six-month prison sentence or a £5000 fine. The laws were introduced in the Finance Act 2000 and have replaced the previous system which only levied a fixed rate fine.

It is your duty to ensure that the tax return is complete in every sense and that full disclosures are made to the Revenue. If you are in any doubt then you should include any relevant information in the tax return. This will ensure that the Revenue can then not at a later date say that disclosures were not made to them and thereby impose interest and penalties.

Taxation is a complex area and you may find that the tax return and supporting notes difficult to understand. Most people, who do not use the Inland Revenue's Tax calculation service, use professional services. Contact your Accountant and take appropriate legal and professional advice in order to ensure that the filed tax return is complete and correct.

However you cannot delegate the responsibilities of your tax affairs to any agent or professional so some effort is required to first gather all the necessary information.

As an aide memoir attached is a Tax Return Information checklist (click here for a PDF version (61KB)). We distribute it to our clients and provide it here, not as an exhaustive guide but merely a précis. If you find it hard to motivate yourself, then see how many of the questions you can tick now. Then plan to find an answer to each question - one per day - over the next week.

Like most financial planning, the best advice is 'DON'T LEAVE IT UNTIL THE LAST MINUTE'!

Click here - Tax Return Information checklist (printable version)
Click here - Tax Return Information Checklist (PDF version).