REVELATIONS in this year's budget could cost local businesses thousands of pounds if allowances for computer equipment are scrapped.

Linda Penny, of Hounslow accountancy firm Charles Stewart, explained that 100 per cent of first year capital allowances for computer equipment and peripherals will no longer be available for small businesses after April 1.

The allowance applies to computers and associated equipment such as cabling, monitors, keyboards and so on.

A business owner is currently entitled to claim first-year capital allowances for the chargeable period in which the first-year qualifying expenditure is incurred if they own the plant or machinery as a result of incurring expenditure.

Miss Penny said: "As the April deadline looms you should consider acting now if you are thinking of buying computer equipment for your business."