Home Computer Initiative
Encyclopedia
The Home Computing Initiative (HCI) was a UK Government programme which allowed employers to loan computers to their employees in a tax efficient manner. Introduced in 1999 as a way of increasing the IT literacy of the general workforce, it gained momentum in 2003 after a rebranding and promotional efforts from the Trade Union Congress, the Department of Trade and Industry and companies in the industry.
The HCI Alliance, also launched in 2003, was a group of computer industry leaders and suppliers who worked together with the UK Government on Home Computing Initiatives with the objective of increasing access to home computing in the UK.
On March 23 2006, in his UK Budget, Chancellor Gordon Brown
removed the HCI tax exemption for employer-loaned computers effective 6 April 2006. The short notice upset companies which serviced the programme - many of which relied on the HCI programme as their only source of income. Many have ceased to trade - others have repositioned themselves.
The stated reason for the ending of the programme was that computers had become more affordable, so most people within the workplace now had access to computers, and the purpose of the scheme had been achieved. Further tax-free provision of computing goods would not directly increase workforce IT literacy (for example, some suppliers were alleged to have offered games consoles). The Government also said that higher rate taxpayers were benefiting more than the lower rate taxpayers the government had been targeting. More cynical commentators pointed out that the Government had "lost" £300 million pounds of tax revenue through the duration of the scheme, which they were eager to reclaim.
Approximately 60 companies were known to provide HCI schemes.
In the immediate days following the budget announcement, a significant lobbying campaign commenced resulting in the treasury announcing that it would consider alternatives to HCI in its current format rather than disband it altogether.
Two years later, Gordon Brown announced the provision of home computer and internet vouchers for families on low incomes. The Educational Technology Allowance voucher programme will be rolled out from 2010.
The HCI Alliance, also launched in 2003, was a group of computer industry leaders and suppliers who worked together with the UK Government on Home Computing Initiatives with the objective of increasing access to home computing in the UK.
On March 23 2006, in his UK Budget, Chancellor Gordon Brown
Gordon Brown
James Gordon Brown is a British Labour Party politician who was the Prime Minister of the United Kingdom and Leader of the Labour Party from 2007 until 2010. He previously served as Chancellor of the Exchequer in the Labour Government from 1997 to 2007...
removed the HCI tax exemption for employer-loaned computers effective 6 April 2006. The short notice upset companies which serviced the programme - many of which relied on the HCI programme as their only source of income. Many have ceased to trade - others have repositioned themselves.
The stated reason for the ending of the programme was that computers had become more affordable, so most people within the workplace now had access to computers, and the purpose of the scheme had been achieved. Further tax-free provision of computing goods would not directly increase workforce IT literacy (for example, some suppliers were alleged to have offered games consoles). The Government also said that higher rate taxpayers were benefiting more than the lower rate taxpayers the government had been targeting. More cynical commentators pointed out that the Government had "lost" £300 million pounds of tax revenue through the duration of the scheme, which they were eager to reclaim.
Approximately 60 companies were known to provide HCI schemes.
In the immediate days following the budget announcement, a significant lobbying campaign commenced resulting in the treasury announcing that it would consider alternatives to HCI in its current format rather than disband it altogether.
Two years later, Gordon Brown announced the provision of home computer and internet vouchers for families on low incomes. The Educational Technology Allowance voucher programme will be rolled out from 2010.
External links
- BN 30 - Exemptions For Computers & Mobile Phones, HM Revenue & Customs, 6 April 2006
- Home Computer Initiative ended by new benefit in kind rules for mobiles and PCs, John Stokdyk, AccountingWEB, 22 March 2006
- PM plans £300m 'broadband for all' scheme, Oliver Garnham, PC Advisor, September 23, 2008