You will, you will, you must

If you are among the 3.3m people who still have not filled in and submitted their 2000-01 tax returns together with any tax you owe to the Inland Revenue, do it now. You delay things further at your peril.

Under the self-assessment regime, the Revenue is getting increasingly tough with late payers, who face harsh penalties.

You have just 12 days left to get your return and any tax you owe for the tax year ending April 2001 to the Inland Revenue. Miss the January 31 deadline and you will have to pay an automatic £100 fine plus interest charged at 6.5% from that date on your outstanding tax liability.

If you then fail to get your payment in by February 28, you'll be landed with a further automatic surcharge of 5% on the outstand ing amount. And anyone who continues to bury their head in the sand and do nothing will eventually be taken to court by the Revenue where they face fines and even jail for non-payment of tax.

Only the small minority of people who owe no tax escape the £100 fine for late filing of their return. This is because the Revenue only has the power to levy penalties up to the maximum amount of tax you owe.

The Revenue has made clear that it will be taking a tougher approach to tax collection from now on. It considers tax paid late as an unsecured loan to the taxpayer and sees no reason why the taxpayer shouldn't borrow from their bank so that they can pay up on time. So it will be enforcing penalties and interest charges more strictly and chasing outstanding tax more vigorously. Anyone with tax of more than £5,000 outstanding, for example, will get just one telephone reminder on late payments and if they then fail to pay up, formal recovery proceedings will begin.

The message from tax practitioners and advisers is simple - you will avoid a lot of hassle and expense if you get down to filling in your return, working out what tax you owe and sending the form and payment back by January 31.

Clive Mackintosh, partner with accountancy firm PricewaterhouseCoopers says: "Don't panic. If you set aside some time to gather your papers, bank statements and tax records together now this should be a relatively stress-free excercise."

There is still time to get copies of any missing documents and to get help with any difficult questions you may have from tax officials via the Inland Revenue helpline on 0845 9000 444, your local tax inquiry office or the website at www.inlandrevenue.gov.uk People on low incomes can also get free help from the charity TaxAid on 020 7624 3768.

If your tax affairs are complex and you need more detailed help, consider paying a tax adviser for professional help. A list of local accountants is available from the Institute of Chartered Accountants in England and Wales via its website at www.icaew.co.uk or by calling 01908 248090.

Just over 9m people were sent tax returns for 2000-01 last year, mainly the self-employed and higher-rate 40% taxpayers. The 5.7m who sent back their returns by September 30 had their tax cal culations done for them by the Inland Revenue, though they are still obliged to pay any owed tax by January 31. Those who have still to send in their returns now need to calculate their own tax liability and pay what's due.

There are also people who may not have received a tax return, but should fill one in because their circumstances have changed, possibly pushing them over the 40% tax threshold.

And the onus is on them to recognise the fact and request one, not on the Revenue, warns David Rothenberg, senior tax partner with accountants Blick Rothenberg. Typical changes that should prompt a request for a tax return are, for example, inheriting money, becoming self-employed, getting a company car for the first time or buying a house and letting it.

Study the form before you give your final answer

Filling in a tax return and working out how much you owe doesn't have to be hard, especially if your affairs aren't particularly complicated. You can, if you wish, fill it in and pay your tax bill online via the Revenue's website.

Clive Mackintosh of PricewaterhouseCoopers suggests the following approach:

Read the instructions thoroughly before you start - don't try to fill out your return from memory or by rushing through the answers.

Make sure you have all the relevant information to hand including bank statements, dividend certificates, your P60 if you're an employee and P11D if you get benefits in kind.

Fill in all the relevant sections and pages; there is a useful checklist at the back of the main form. You may need to request additional pages from the Revenue if, for example, you are self employed or receive rental income. You can do this via the website at www.inlandrevenue.gov.uk or by calling 0845 900 0404.

Don't forget pensions, including state pensions, most of which are taxable.

Put in exact figures. If you really don't have exact amounts for any item, you can use an estimate. Do this rather than miss the deadline, but explain what you have done in the white space at the end of the form.

For any dividends and interest payments you have received, you need to put in the net amount (cash actually received), the tax deducted (see certificate/voucher) and the gross amount. Make sure they add up and that you put the amounts in the right boxes.

Forget pence when filling in the form - you round the figures to your advantage. But remember that net plus tax must still equal gross in the dividend and interest boxes. An odd £1 difference may not seem much to you, but it may make the Revenue's computer reject your return.

When you have finished, check your answers - do they all add up? Does your form make sense? Have you included everything you should have?

Check that the tax payable figure looks right. If you are not sure, compare the "tax due" figure with a rough calculation on a separate piece of paper.

Don't forget to sign the return - this is a common cause of rejection.

Take a copy of your return - it will help you next year.

Remember you have to pay the tax you owe as well as send in your return by January 31.

If you are sending your return by post, particularly if you are enclosing a cheque for unpaid tax, send it by recorded delivery or registered post so you have proof of delivery.

You can hand-deliver your return to any tax office, but get a stamped receipt.

Finally, if you feel unsure about your calculation and fear you have underestimated the amount of tax you owe, the best bet is to make an overpayment. That way, you cover yourself against penalties for late payment.

You can also tick a box on your return in advance saying you will want to reclaim any overpayment you make. The Revenue will pay you interest at 2.5% on overpayments.