EMPLOYEE BENEFITS
Surge in use of Home Computing Initiative
In the year since the government issued guidelines for its Home Computing Initiative (HCI), there has been a huge increase in interest and uptake, according to a recent issue of IT Week.
Under the HCI scheme, launched in 1999, organisations can benefit from a tax exemption if they offer employees a home PC on loan for a monthly fee. At the end of the lease period, generally three years, employees could be given the option to purchase the equipment for a nominal payment.
The tax break was made available in 1999, but few companies rolled out HCI schemes at the time -- partly due to confusion and lack of awareness, experts told IT Week. However, the launch of guidelines at the start of last year has spurred activity.
| Tax-free home computers |
| British businesses and public sector organisations can take advantage of the tax exemption on loaned computers introduced by the Chancellor in the Finance Act 1999 which enables companies to loan computers to their employees as a tax-free benefit. By loaning computers to employees businesses can offer them a valuable benefit which at the same time helps to maximise organisational performance through improved ICT skills. When compared with purchasing a computer out of taxed income, the employee saves tax and national insurance -- so employees typically obtain additional savings of at least 30% -- and the company saves employers' national insurance contributions. More details are available at www.dti.gov.uk/hci |
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Title: "The government's Home Computing Initiative took off in 2004, vendors say", by Madeline Bennett, IT Week, 6 Jan 2005.
Read the article online at www.computing.co.uk/news/1160333
Posted 4 February 2005