SO WHAT'S NEW?A seismic shift occurred on 6 April 1996.

For tax years 1996/97 onwards the tax payer must decide how much tax is payable on his or her income and gains and pay accordingly.

The Inland Revenue expects the tax payer to get it right first time.WHAT DOES THE INLAND REVENUE DO? The Revenue will process the tax return to see if it is valid (eg whether it has been signed) and later check it and compare it with information from other sources.

If there is a risk that the return is incorrect the Revenue will start an enquiry.

Some returns will be investigated on a random basis (between 5,000 and 10,000 cases).If there are any queries on the return a Notice of Intention to raise queries has to be issued by the Revenue within 12 months of the filing date for the return.

Obtain a copy of Code of Practice 11 entitled 'Enquiries into tax returns by local tax offices'.

There are separate codes for specialist tax offices, eg where serious fraud is suspected.

If you receive one of these with a Notice, ensure that you take advice from a practitioner familiar with tax investigations or the criminal law before you make any response.HOW DO THE CHANGES AFFECT SOLICITORS?-- In dealing with their own tax affairs-- In dealing with tax returns and compliance for clientsSOLICITORS' OWN TAX AFFAIRSIn April 1997, in addition to individual partner self assessment returns, every firm should have received a self assessment partnership return requiring a return of the partnership income, profits and disposals of capital assets and the allocation of those items between the partners.This is the last year that partnership returns will be issued.

In the future, the Revenue will have sufficient information to calculate payments on account from the individuals' own self assessment return.Completion of the partnership tax return is compulsory and should be submitted with a statement of the names, addresses, tax districts and references of each partner and each partner's share of profits, losses, charges on income and tax deducted or credited.

The return for 1996/97 must be submitted by 31 January 1998.If the Revenue decides to enquire into a partnership return, it automatically extends to the individual partner's returns.

An enquiry into non-partnership matters on a personal return of a partner will not result in a partnership enquiry.For 1996/97 only, for 'old' partners -- ie those already in existence at 5 April 1995 -- there is a partnership assessment on the professional profits, the tax for which will be paid by the partnership (and the liability is joint and several).

The instalment dates for payment were 1 January 1997 and 1 July 1997.

Each partner will get a credit for his or her share of the tax in dealing with his or her own self assessment.Although partners are responsible for paying their own tax under self assessment it may still be sensible for firms to retain part of a partner's profit to meet that partner's tax liability on the share of partnership income, releasing it to the Revenue on due dates.DEALING WITH CLIENTS' TAX AFFAIRS-- You must be up to date.

Register as a tax agent with your local tax office to receive updates on self assessment information.

Obtain all new forms from the new central orderline; telephone numb er 0345 161 514.

Subscribe to the Revenue's Tax Bulletin (Cost: £20 pa; contact Ms Nahid Shariff.

room 435, 22 Kingsway, London WC2B 6NR; telephone 0171 438 7842).

Read taxation journals.-- Clients must be educated about the changes.

Prepare information explaining the basics -- not least the record-keeping requirements.

Why not send clients the Revenue's guide, available free from the orderline: A General Guide to Keeping Records -- SA/BK4?-- Write a careful letter to each client setting out when a return needs to be requested, the importance of letting you have all the information to complete the return within a specified period, the dates for payment of tax and the sanctions for failing to request and complete a return or pay the tax on time.

It is important to stress the Revenue requires full disclosure and that this is the only basis upon which you can accept instructions.-- Set yourself a clear work programme allowing sufficient time to complete and submit all the returns on time and issue statements of income to beneficiaries in estates and trusts early enough for them to submit their own returns (30 September).-- Self assessment is an administrative process of assessment and collection of tax coupled with a penalty regime to encourage compliance.

It is governed by dates, so a good diary system must be in place to chase up outstanding information.-- The use of information technology is essential.

It enables you to collect data this year and carry forward repetitive information to future years without re-entering it.

This improves accuracy and enables you to make speedier responses to queries than with a manual approach.

Over time it should reduce the cost of providing the service.

There are many providers of systems from simple and cheap (less than £500) to large, integrated and expensive systems costing several thousands of pounds.WHEN CHOOSING SOFTWARE;-- Spend time planning what you want; identify requirements; investigate what is available and evaluate which is the right system for your practice-- Cost in time for good quality training and time for installing the system and entering data-- Select a supplier who has a sound knowledge of both tax and IT-- Choose a supplier who is intending to stay in the tax sector of the market and enhance its product-- Look for financial stability, longevity and track record in the marketplace.AND FINALLYDo not underestimate the shift in emphasis.

We are now in a new regime: the tax payer is assumed to submit returns which are right first time and errors lead to the assumption of negligence.

Do not let that negligence be yours.