The Home Computing Initiative, through which employers are able to subsidise employees's purchase of computer systems, has been effectively closed by a Budget crackdown on electronic benefits in kind.
The HCI scheme introduced in the 1999 Finance Act will cease with effect from 6 April, an HMRC spokeswoman confirmed.
The exemption allowing employees to borrow personal computers from their employers for home use free of any tax liability as a benefit in kind will be changed, along with simlar provisions covering mobile phones set out in Budget Note 30 Exemptions For Computers & Mobile Phones
For computers, section 320 of Income Tax (Earnings and Pensions) Act 2003 the benefits in kind exemption currently applies to the first 500 of the hardware cost. There is currently no limit to the number o...