The end of HCI schemes
The DTI’s HCI (Home Computer Initiative) had allowed some companies to provide computer equipment to higher rate tax payers at a low price, but the tax benefits are being stopped from April 2006
Many employees have benefited from the tax exemption to get a computer into their homes, but the Government now wishes to focus support on groups with the poorest access to technology, to meet the goals set out in the Digital Strategy. As a result, the Govenment has
decided to remove the current tax exemptions for employer-provided computer equipment, from 6 April 2006.
Schemes varied from very generous to some where the profit was biased towards the employer and the operating company, but now it looks like the end of all such schemes.
With PC equipment falling in price it is probably not such a bad thing. Cutting edge computer equipment devalues quickly, and you’re probably better off shopping round for a good deal on something slightly older than buying the latest equipment on a HP scheme.
I asked my friendly HR contact for some figures on the uptake of the scheme. In an broad way they seem to support that our scheme mainly benefited the higher paid, although that says as much about the sort of employees our company is made of, and the types of machines that were available. It would be really interesting to see some figures from government, although I expect the chance of figures being released for a defunct programme are low.