Self Assessment: Many happy returns

As the saying goes, there are only two certainties in life and, while your PC can't help stave off the first (yet), it can at least help alleviate the hassle of the second.

Thankfully, tax is something that most people are content to let the Inland Revenue take care of.

However, if you're self-employed, a company director, business partner, trustee or personal representative, an employee or pensioner who pays tax at the higher rate or an employee or pensioner with "more complex tax affairs", then you have to lend the tax man a hand.

Self Assessment tax return forms are sent out on 6 April every year to people that fall into one of the categories above. The good news is that you don't have to work out your tax bill yourself - the Revenue takes care of that - but you do have to fill in the form accurately and you're charged interest, surcharges and penalties for late submission.

Fortunately, help is at hand in the form of software designed to simplify the preparation of your tax return. You can get your hands on this software by mail-order purchase or by downloading it from the internet. The problem is which one do you get? Don't worry - we'll make your return less taxing.

What software do you need?
All self-assessment software offers the same set of basic features and is capable of the same analysis and calculations. The differences are mainly in the ease of entry of your data and the amount of help offered.

They can all submit your return electronically, which the Revenue amusingly calls FBI (Filing By Internet).

Every tax return consists of a core set of pages, known as SA100 forms, plus sets of supplementary pages for individual tax circumstances. Every software package comes complete with the SA100 pages, some with a limited selection of supplementary pages and some with all pages.

Most paper forms have explanatory notes and it's useful if the software you're using has these too.

All software will calculate your tax liability, which is a good thing to do even if you're letting the Revenue do it for you, as it has been known to make mistakes. You should also look for calculation validation, where the software will report any inconsistencies in your data entry.

Some software replicates the Revenue forms, complete with boxes for you to fill in. These programs perhaps are more in need of good help systems.

Other software will offer you an interview screen, where the questions may not be quite so intimidating.

Since taxation details change at every Budget, you'll also need new software or at least an update every year.

PERSONAL TAX REPORTER SOLO

Personal Tax Reporter Solo from TaxShield can produce tax returns for up to three individuals, calculating tax liability and any payments on account.

Finding your way through the document is made easier by a navigation pane that's permanently on view. You don't have to answer questions consecutively but can move around at will.

PROTAX LIGHT

ProTax Light is a version of Forbes Computer Systems' professional ProTax and can complete up to five returns. There are three versions, all able to complete and file SA100 forms.

The cost varies with your circumstances. A £20 unlock code buys all the supplementary pages while a £10 unlock code covers employment and self-employment only. If your total income is below £12,000, it's free.

SA2000-02

SA2000-02 from Quality Management Software is a Microsoft Excel spreadsheet download with sheets covering most supplementary pages, and can be used to print a set of forms to send to the Revenue. It's quite comprehensive but you need to be familiar with fairly sophisticated spreadsheets.

TAX 2002 PERSONAL

Tax 2002 Personal, from Equa Via Software Publishing can handle up to three people's returns, generating all of the Revenue's supplementary pages (unless you're a minister of religion or a self-employed Lloyds underwriter).

It also handles the short version Partnership Return. There's a set of Revenue Notes and Revenue Help Sheets in PDF format, all accessible individually.

TAXCALC 2002

TaxCalc, formerly by Which? and now from Intuit, features a clean, uncluttered interface in its fact-finding format. It appears to have no restrictions on the number of users it can handle, so it would seem that you could settle the tax affairs of all your family and friends.

There is plenty of help, together with comprehensive taxation advice and explanation. There's even more help on the product developer's website at www.idp.co.uk.

TAXCALC 2002 LITE

TaxCalc 2002 Lite is a cut down (though not by much) version of TaxCalc 2002 from Intuit and can be downloaded from the TaxCalc website.

TaxCalc Lite is suitable for taxpayers who need only basic Self-Assessment forms (reckoned to be up to 98 per cent of Self Assessment taxpayers). Once you've completed your return, TaxCalc Lite will also enable you to either print out a tax return document or use the FBI service.

TAXCHECKER 02

Taxchecker 02 from independent tax specialist ASP lets you choose whether to have your hand held by the now-familiar fact-finding questionnaire or to wrestle with the more hardcore entry straight onto the facsimile Revenue pages.

You can, in fact, switch between these two interfaces at any time, even halfway through a page. Help is available in the form of Revenue-based notes and advice. The publisher also offers a £12 electronic review of your entries and calculations before submission to the Revenue.

TAXSAVER 2002 DELUXE

Digita's principal offering for consumer use is TaxSaver 2002 Deluxe, giving you the choice of an on-screen interview questionnaire or a set of facsimile forms.

In fact, you can use a split screen with both questionnaire and Revenue forms visible at once. The Help facility includes the official Revenue Help Sheets and a user guide.

Tax advice
There are also a couple of programs available that won't help you to fill in your tax return but will give you useful background information to reduce your tax bill.

Instant Tax Refund will help you to reclaim any tax owed to you if you're an employee (not self-employed) working at home or incurring related expenses "wholly, necessarily and exclusively" during your employment.

It will even draft a letter to your tax office for you. You can claim tax back for up to six years after the tax year-end if there was an error or omission.

Smith's Taxation won't help with the mechanics of filling in your tax return either. The 105th edition (also available as a book), is a comprehensive guide and reference to the UK tax system aimed at professional tax advisors and accountants.

If your tax affairs are simple, you won't need this CD but if they are the slightest bit complicated and you need to familiarise yourself with any aspect of personal or company taxation, this is where you'll find the information, clearly laid out in PDF format and with worked examples to illustrate your options.

The Smith's Taxation CD-Rom costs £38, or you can download the data at a discounted price from the Smith's Taxation website here.

Taxing times
It is potentially expensive to miss tax deadlines, so keep an eye on the calendar. The next important dates to remember are 30 September and 31 January.

September is when you need to send back your return if you want the Revenue to work out a tax bill for you or to collect your tax payment(if it's less than £1,000) through the next year's PAYE code number.

January is when you must send back your return if you want to calculate your tax bill yourself and avoid a fixed penalty of £100.

I am the tax man
Like all software applications, the advantage of self-assessment packages is their speed and accuracy. Having your entries checked for logical consistency, correct parameters and errors of omission means that your returns will not be rejected for those reasons.

The software can also calculate your tax liability, which means no nasty surprises in brown envelopes, and perhaps a tax refund if the Revenue makes a mistake.

On an equally practical level, most software has searchable help and even PDF copies of the Revenue Notes and Tax Guide, cutting down your search for assistance. It's unlikely that you will go wrong with any of the software mentioned here.

Ultimately, your choice depends on whether the package has the right supplementary pages for you and whether you like the interface. In that respect, a package with a dual interface covers both options.

The most impressive packages here are Taxchecker and TaxSaver, the former for its dual interface and provision of all forms; the latter for having the most forms and being able to handle two taxpayers.

Both also have lots of help and useful website links. You should also look at TaxCalc with its help for data entry as, for example, the uncomplicated calculator for your company car and fuel benefit.

Online resources
Your first port of call online has to be the Inland Revenue website. Here you'll find copies of every tax form, guide, note and help sheet available. It's also your route to the Revenue's internet service for self-assessment.

The site is useful and helpful up to a point, but it's closely focused on what the Revenue wants from you.

Some of the software publishers also maintain sites replete with tax tips and help, in particular Digita and ASP. You don't have to use the software to visit and you can pick up some useful ideas.

There are other sites keen to be even more helpful even if, in the end, they're selling something. This Is Money brings together information otherwise time-consuming to collate. It can also offer you a discount on TaxSaver.

Ample has a range of practical advice on reducing your tax liability, and Sure Tax even offers to complete your paper return for you, albeit from £75 upwards. If that's not enough, try the UK Taxation Directory.

A matter of form
In addition to Form SA100, the tax return, the supplementary pages you might need, dependent on your circumstances, are:

• SA101 Employment Pages
• SA101M Ministers Religion
• SA102 Share Schemes
• SA103 Self Employment
• SA103L Lloyd's Underwriters Pages
• SA104 Partnership Pages (Short Version)
• SA104F Partnership Pages (Full Version)
• SA105 Land & Property Pages
• SA106 Foreign Pages
• SA107 Trusts etc. Pages
• SA108 Capital gains
• SA109 Non-residence

Each of these has a set of Notes pages too, and there are also the Guides:

• SA150 Tax return guide
• SA151 Tax Calculation Guide

Online submission
You can complete and submit your tax return online using the Revenue's SA Online service, which is suitable for those with uncomplicated tax circumstances. Mind you, the Revenue doesn't make it easy.

You need a User ID (usually emailed the same day), your Tax Code from your paper return and a Pin code, which can take several days to come by post.

The Revenue service has been criticised by a Parliamentary committee for its security failings that allowed taxpayer confidentiality to be breached and resulted in the service being withdrawn for a month for remedial action to be taken.

It's easier to use Digita's TaxCentral online-only self-assessment service, which is also free for personal use and part of an impressive online information database.

Alternatively, TaxChecker Online from ASP gives you the choice of an on-screen interview or replica Inland Revenue forms and will also check your return for a fee, before submission.

The Revenue says the advantages of online submission are the automatic calculation of your tax as you complete the return. Returns are processed more quickly, any money owed to you is repaid sooner and you get online acknowledgement when your return is received.