EMPLOYEE BENEFITS
Home computing initiatives win plaudits
Having got off to a slow start, evidence suggests that where home computing schemes exist, they have won substantial support from employees, managers and trade union representatives. That's one of the main findings to emerge from a study by IRS.
More than 380 companies are committed to implementing HCI schemes for more than 3.6 million employees, according to figures from the HCI Alliance cited in the IRS report.
In addition to providing an overview of scheme regulations, this three-page report also includes a brief case study of Merseyrail's HCI, delivered by Futuremedia. Already the company is able to boast that 28% of staff have signed up.
| 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. The Home Computing Initiative (HCI) enables companies to loan computers to their employees as a tax-free benefit through a salary sacrifice scheme. 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 |
Want to know more?
Title: "Home computers: the fastest growing company benefit", IRS Employment Review 820/Pay and Benefits, 25 March 2005.
Availability: To purchase this report contact the subscriptions department at IRS in London, tel: 020 8686 9141 or visit www.irsemploymentreview.com