FAMILIES claiming tax credits risk losing money if they ignore renewal forms sent out by the Inland Revenue.

Chartered accountants warn that those receiving more than the basic family element credit must complete and return an annual declaration by the end of September to maintain their entitlement. Shamim Mahomed, president of the North West Society of Chartered Accountants, said most people will have received Annual Review Packs sent out between April and July.

She explained: "At the end of each tax year, the Inland Revenue reviews all awards made for Working Tax Credit or Child Tax Credit to ensure people receive the correct amount.

"Payments continue during the renewals process, but it's essential that people receiving the credits give details of their income and inform the Inland Revenue of any changes in their circumstances."

Failure to return the forms by the end of September means that payments for 2004/5 could actually stop leaving families short of money.