Small firms could miss out on financial savings because they are unaware of a new government tax incentive introduced this week.
Legislation came into force on Thursday which increased first-year capital allowances for spending on most plant and machinery from 40% to 50%. The rules apply to purchases made up to 31 March 2005.
Small firms can now offset the larger amount of the cost of buying the goods against their tax bill.
Accounting firm Hacker Young urged the UK's SMEs to make sure they take advantage of the legislation, which is designed to improve cash flow efficiency.
"Investment in plant and machinery is a huge cost for small businesses. This new incentive will mean savings of thousands of pounds for some [firms]," said Hacker Young's Roy Maugham.
"Businesses planning to make this type of investment must do so before 31 March 2005 in order to benefit from the increased tax saving."
