From the Budget, new tax credit rules came into effect on 6 April 2011, covering the amount of income you can have before your tax credits are affected, the hours you can work if you're 60 or over and the reduction or stoppage of some payments.

Previously, income increases of up to £25,000 didn’t normally affect your tax credits for the current tax year (although they were taken into account the next year). This limit is now £10,000 for the tax year, beginning 6 April 2011. This means if your income goes up by more than £10,000 from the last tax year, the amount of tax credits you get for the current tax year will be reduced. 

The income limit for Child Tax Credit comes down from £50,000 to £40,000, and if your income is over the new limit, your basic Child Tax Credit payment of £545 will be reduced. There are also changes to some of the tax credits rates (or 'elements'), including the maximum amount of the Child element of Child Tax Credit, which will go up from £2,300 to £2,555. 

The amount of help you can get with childcare costs drops from 80 per cent to 70 per cent. The most you can claim each week is now £122.50 for one child (down from £175) and £210 for two or more children (down from £300). 

The extra amount of Child Tax Credit for having a baby under the age of one is now stopped. This change means if you were getting this payment for the last tax year, you won't get it for the new tax year - even if your child is still under the age of one. 

The rate at which tax credits are reduced (known as 'withdrawal rates') as your income goes up is now at a flat rate of 41 per cent, meaning that your tax credits payments may go down. 

From 6 April 2011, if you're aged 60 or over you only need to work 16 hours or more to qualify for Working Tax Credit, meaning that you can make a claim for Working Tax Credit if both of the following apply - you work at least 16 hours a week and you are not already getting tax credits. 

If you already qualify for tax credits, you will have to report any changes in circumstances. This is to make sure your payments are kept up to date and you get what you are entitled to. Changes you need to report include a child leaving home, a drop in working hours or starting work.