PEOPLE who receive child tax credits have until August 31 to update the taxman or lose out.

Annual review packs are sent out by HM Revenue & Customs between April and June.

Failure to supply the taxman with correct details mean that families could miss their payments, warns the Association of Chartered Certified Accountants (ACCA).

Not only will payments be stopped, but if HMRC does not hear anything by August 31, then recipients will be asked to repay their earlier payments.

ACCA head of tax Chas Roy-Chowdhury said: "The message is clear from HMRC anyone who wishes to continue to receive tax credits needs to renew their award.

"They can do this either on the phone or by post by sending off their annual review packs.

"If it hasn't been done already, then recipients need to provide feedback to the taxman before the summer holidays are over or risk their payments stopping altogether."

The tax credits system has been beset with problems involving overpayments, underpayments and administrative failures.

A Public Accounts Committee report revealed overpayments of £2.2 billion by HMRC in 2003-04 to some 1.9 million families representing one third of those claiming.

factfile

  • Who can claim? How much? click on www.hmrc.gov.uk/pdfs/wtc1.pdf
  • Child tax credits are means tested each year.
  • Child tax credit annual review packs are issued every year between April and June, with HMRC asking for people to ensure their details are correct.
  • If people did not receive a pack by the end of June, they should contact the tax credits helpline 0845 300 3900 (8am-8pm, seven days a week).
  • If you are to receive child tax credits, the taxman will need to see a P60 and final payslips for the tax year if self employed, the taxman will then need details of income which can be found on a tax return.