Government relaunches home computing initiative

EMPLOYEE BENEFITS

Government relaunches home computing initiative

Trade and industry secretary Patricia Hewitt has published new guidelines for employers on the government-backed home computing initiative designed to encourage home ownership of PCs.

The new home computing initiative (HCI) guidelines contain:

• information about why HCI schemes may offer benefits to organisations and their employees
• advice on how to get started
• a set of technical implementation guidelines approved by the Inland Revenue and others
• case studies from a range of organisations that have successfully implemented HCI schemes.

Tax-free home computers

The guidelines produced by the Department of Trade and Industry, in association with Department for Education and Skills and the Cabinet Office, aim to help British businesses and public sector organisations take advantage of the £500 annual tax exemption on loaned computers introduced by the Chancellor in 1999. The exemption 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 national insurance contributions.

Want to know more?

Copies of the guidelines are available by phoning the DTI publication line on tel: 0870 150 2500 or via the web at www.dti.gov.uk/hci

To read the full press release online visit www.cabinet-office.gov.uk/news/2004/040119_cominit.asp