SMALL businesses in Worcestershire and Herefordshire should act now to save money on new technology, according to a leading accountancy body.

The Association of Chartered Certified Accountants (ACCA) has advised firms thinking of replacing their computer systems that time is running out.

The First Year Allowance for Investment by Small Businesses in Information and Communications Technology, which offers 100 per cent tax relief on new computer systems, is a temporary measure that is due to expire on Monday, March 31, after three years in force.

Val Culley, ACCA spokeswoman for the West Midlands, said firms should contact a Chartered Certified Accountant to find out if they were eligible for the enhanced allowance.

"If there's no extension, the allowance could revert to 40 per cent from April 1, 2003," she said.

"The potential 60 per cent cut in allowances could make a significant difference to the costs incurred by hard-pressed small businesses which would benefit from using new technology."