URL-Encoded folders and files

Been creating CMS systems lately and I've been doing some regex to remove all special characters when a user tries to create a new folder or file. Question is, would there be harm in URL-Encoding the name and then using that to name the file? Like if they try to create a new file...

they enter: new stuff!
I then encode it to: new_stuff%21

and use that for the filename. Then I can read it back in, decode it, and display it as it was meant to be shown.

Thanks for any info.
webg