Businesses that fail to implement the new Data Protection Act which comes into force today,

face large fines.

Roland Brook, of the South Eastern Society of Chartered Accountants, said the Act introduced more regulations for processing personal data and failure to comply with it could result in fines of up to £5,000.

The old law applied only to computer-held records but the revision now includes written and printed information.

Mr Brook said: "One of the changes concerns the application of the Act to what it describes as relevant manual filing systems, as opposed to just computer-based records. In general, any structured filing system could well fall within the Act's scope.

"This has implications for many smaller businesses, for instance, with personnel and marketing activities.

"Particular care must be taken if data is transferred abroad and there are new rights which give individuals greater access to information about themselves and about processing activities.

"The need to ensure all personal data is accurate and up-to-date, held in a secure environment and relevant is causing many businesses to conduct a comprehensive information audit.

"More onerous rules apply to sensitive personal data such as politics, religion, sexuality and race, which are having particular impact on many organisations in the not-for-profit sector."

www.ICAEW.co.uk.