Home Computer Initiative

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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 only gained momentum in 2003.

The HCI Alliance are a group of computer industry leaders who worked together with the UK Government on Home Computing Initiatives with the objective of increasing access to the Internet in UK homes. They are currently campaigning for the reintroduction of the HCI programme, or similar initiatives.

On March 23rd 2006, in his UK Budget, Chancellor Gordon Brown removed the HCI tax exemption for employer-loaned computers effective 6th April 2006. The short notice upset companies which had sprung up to service the programme - many of which relied on the HCI programme as their only source of income, and are now struggling to reposition themselves.

The stated reason for the ending of the programme was that many providers supplied computing goods which would not directly increase workforce IT literacy (for example, some suppliers were known to offer 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.

[edit] A new scheme is now available

It is called the Home Training Initiative. Visit http://www.hometraininginitiative.com to find out more. Still has Tax efficient savings on getting a PC/Laptop, but the added benefit of over 600 training courses, all paid for through easy Salary Sacrifice payments.