Personal finance experts are urging people to ensure they are getting the right level of tax credits.

For those not claiming tax credits they should check their finances to see if they do qualify for extra cash and those currently claiming, will be receiving and completing their yearly renewal forms.

Paid over by the Inland Revenue, tax credits are a Government initiative created in part to help people stay in work, rather than rely on benefits.

Tax credits come in two forms: working tax credits and child tax credits.

Working tax credits have a broad entitlement, including those that work over 16 hours a week, but are on low incomes; or disabled; or paying for childcare; or, aged over 50 and going back to work after unemployment.

Child Tax credits are available to those with children who qualify for the benefit.

Much depends on a claimant’s personal circumstances, but one of the biggest problems with the system is that many people do not know that they qualify for payments. Families earning up to £66,000 can qualify for these benefits.

The renewal forms need to be completed, checked and sent back to the tax office by 31st July, 2009, otherwise payments can stop. For those that prefer to telephone instead, there is a Tax Credit Helpline on 0845 300 3900.

Some help might be needed completing the form, as questions can require detailed information. The form is basically centred on how much the claimant earned during a particular year (in this case, the tax year 6th April 2008 to the 5 April 2009) and this will be used to check that the payments made to date were correct and that future payments will be at the right level.

Its important that people notify the tax office as soon as changes occur, which might include a new salary (whether you are being paid more, or less); your number of children increases; or, whether you have different childcare costs.

Failure to inform the Tax Office can cause problems as have been highlighted in the media recently. Any overpayments need to be paid back quickly and efficiently, but mistakes are made, so you have a right to query any decision.

The best thing is to make sure is that you take care when completing the form and tell the Tax office immediately of any changes.

Guest Article by Neil Camp