HUNDREDS of families in Salisbury and district could benefit from a new system of tax credits which will apply to working people and those with children.

The system comes into effect on April 6 and families earning as much as £66,000 a year could benefit.

Joss Dalrymple of independent financial services group Smith & Williamson, which has a branch in Salisbury, said: "There are two types of credit Working Tax Credit and Child Tax Credit.

"It is important that people claim now."

Working Tax Credit can be claimed by those over 16, in paid employment, working more than 16 hours per week.

Child Tax Credit goes to those, whether or not they have a paid job, who have children under 16.

Some Child Tax Credit may also be claimed by families with a child over 16 in further education, while additional credits are available for those with babies under one year.

Mr Dalrymple said that in determining the level of credit available, it was the income of the family unit that counted.

A family could be a single parent, or if the claimant was married or living with someone as husband or wife, the income of both parents would be taken into account.

He explained how much tax credits are worth.

"For example, a working family with two children and a combined annual income of £25,000 to £58,000 will be able to claim £545 a year as Child Tax Credit.

"The income threshold increases to £66,000 if a family has a baby under one."

To obtain a claim form, phone the Inland Revenue on 0845 300 3900 or apply on line at www.taxcredits.inlandrevenue.gov.uk.

The next meeting of Smith & Williamson's Business Tax Club will be held at the White Hart Hotel in Salisbury on May 1.

The meeting, which starts at 7.30am, includes breakfast, and there will be presentations on the finance bill and Budget update, share schemes and stamp duty the new regime, as well as an opportunity to ask questions.