HCI alternative springs to life
Consultancy firm finds new way to offer tax savings on home PCs
A Home Computing Initiative (HCI) provider has today launched the UK's first tax-efficient computing scheme following the recent abolition of the HCI programme by the government.
Club-IT's Tax Efficient Computing scheme is available to any business in the UK and means employers continue to have the opportunity to encourage employees to take advantage of an employer-provided home computer at significant cost savings.
The cost of providing this employee benefit can be fully or partially offset to the employer by using a gross salary sacrifice (GSS) method of cost recovery, generating a significant level of tax efficiency for participants, the firm said.
Billy McClean, managing director of Club-IT, said: “The HCI was originally put in place under the government’s Digital Strategy to help tackle the digital divide for employees on lower incomes. Club-IT is committed to this strategy, irrespective of the decisions outlined in the budget, and is now ideally placed to offer UK businesses tax efficient home computing schemes to their workforce.”
Aidan Smith, tax advisor at PwC, said: “HCI may be over, but there continues to be a real benefit for employers to offer their employees a computer by applying existing tax rules under salary sacrifice arrangements. Sizeable savings are therefore still available to the employee.”