The business created by tax compliance is set to become a very significant market for those solicitors concerned with the management of clients' affairs.

It i s estimated that nine million self-assessment returns will be sent out and, while taxpayers in relatively straightforward circumstances may feel able to deal with their own returns and assessments, many will require professional help.

Clients with substantial or diversified sources of income are unlikely to be able to calculate their tax position accurately without expert help.Self-assessment is alleged to simplify the tax system because it passes control and responsibility for tax affairs to the ordinary taxpayer.

The more cynical might view it as a massive shift of responsibility and expense to the taxpayer, underpinned by automatically accruing interest, surcharges and penalties which are sometimes Draconian.Taxpayers will be very strongly encouraged to self-assess and in most cases the information they provide will not be verified.Unfortunately, solicitors have handed over most of their tax work to accountants and others but the new procedures are fresh ground for everyone and there should be a level playing field in competing for work.

The new system gives solicitors every opportunity to retrieve a valuable proportion of this work and re-establish themselves as front-line advisers.There is already a significant foundation of basic, practical tax knowledge available in the private client departments of law firms which can be built upon.

These departments deal with the income tax affairs of trustee and executor clients and most deal with the tax compliance requirements of individuals.The private client working party of the Law Society's property and commercial services committee was set up to provide some help and impetus to the profession in respect of private client practice, which includes domestic conveyancing, wills, administration of estates, the formation and administration of trusts, financial and property management (especially powers of attorney and Court of Protection work), tax planning, tax compliance, financial planning and investment management.

A full private client service is provided by a practitioner who offers all or most of the above to clients.The various products tend to feed off each other.

For example, obtaining clients for tax compliance work often leads to the making of wills, powers of attorney, conveyancing and so on.

These are areas which are under threat from competition.

If an accountant or one of the private banking subsidiaries of major institutions prepares a client's tax return, or advises on a long-term care policy, then other areas of work may also be lost to solicitors.Firms that decide to organise and market tax compliance as part of an integrated private client service should possess a degree of professional knowledge which is commensurate with the task.

However, this is not the same thing as fielding high-powered tax lawyers.

The necessary knowledge will need to be held at the appropriate levels within the firm if the service is to be cost effective.

Consideration should be given to the development or importation of accountancy skills and technology, especially where investment property or trading income may be involved.

The role of paralegal staff will be fundamental as will well organised case management systems.This is certainly not high premium work.

Clients who are won for such a service will not expect to pay a partner's charge-out rate of, say, £100 per hour or more.

On the contrary, it will be far easier to market a modest fixed-price package.It is not essential to have dedicated IT to carry out basic tax compliance, especially where the number of files is not lar ge.

However, in order to operate on any scale the time and organisational value of a suitable software package will be considerable.

It is also likely that a computer-driven assisted service will be far easier to market.Developing tax compliance work will often not be an end in itself for firms, although it would be expected to make some profit.

The real value may lie in gaining and retaining clients to whom the firm's other services can be sold.

Inevitably, the completion and submission of tax returns involves recurring client contact.

An office whose culture exploits this to make clients aware of all the firm's other services may benefit greatly.