HCI VARs to go it alone after rebuff from Treasury

Alliance is on the verge of splitting up following lack of clarification on two points of law

Surviving Home Computing Initiative (HCI) resellers are facing up to the prospect of going it alone following the Treasury’s snub of the HCI Alliance's proposed scheme.

Many were waiting for an alternative to be established, but Vivien Quinn, director of the HCI Alliance, told CRN that hopes are fading fast.

“We were seeking clarification from the Treasury on two points of law that our Employer Provided Computing scheme was based on,” she said. “Unfortunately, neither of the points have been clarified in the way we needed them to be. Parliament has now broken for its summer recess, and although the DTI indicated that talks might resume in October, HCI providers cannot wait that long.”

CRN also understands another former HCI provider, Computers4Staff, entered into liquidation last week.

“There’s not much more we can do as an Alliance, so we’re on the verge of calling it a day,” Quinn said. “I’ve suggested holding a roundtable meeting this week with HCI providers to see if there is anything else we can do for them, but realistically I think we will leave the HCI providers to do their own thing.”

HCI reseller Futuremedia has launched an alternative to HCI in partnership with PC World. Helen Berry, communications manager at Futuremedia, said: “We came up with an idea that didn’t rely on any tax benefits. It’s called Flexsmart and centres on the learning side of things.”

Meanwhile, Martin Prescott, managing director of Red PC Services, is pressing on with his alternative: The Home Training Initiative (HTI). “Our scheme has never needed specific Treasury backing. We got a letter from HM Revenue and Customs in May approving HTI.”

Quinn said: “Just because the Alliance’s proposal hasn’t been supported, it doesn’t mean that other HCI alternatives aren’t viable or valid.”

>> Further reading:

DTI considers two HCI alternative schemes

Treasury delays HCI replacement