The HCI Alliance proposes modifications to HCI

Support for retaining the tax exemption that underpins Home Computing Initiatives (HCI) continues to gather momentum. During the second reading of the Finance Bill earlier this week, a number of MPs spoke in favour of HCI and against the Governmentís decision to abolish the current schemes.

The HCI Alliance continues to argue against the abolition, proposing instead that the abolition of the tax exemption be put on hold during a review and consultation period. This would allow all parties to discuss improvements and modifications to the scheme that would enable additional target audiences to benefit from the HCI framework too.

Vivien Quinn, Director of the HCI Alliance, said: ìThe HCI Alliance and HCI industry feel strongly that the momentum that HCI has built up over the last two years can be harnessed and modified to deliver against the Governmentís wider policy objectives, whilst ironing out the concerns that have been expressed by HM Treasury.

ìHCI has been delivering successfully against the Governmentís targets but there is still much more to be achieved. HCI has been widely acclaimed by many countries outside the UK including France, Spain and Germany who are adopting similar models in support of their own Digital Strategies. With so many external organisations voicing unanimous support of HCI ñ the Confederation of British Industry, Trades Union Congress, Institute of Directors, British Retail Consortium, British Chambers of Commerce, Forum of Private Business and more ñ there needs to be a genuine debate to ensure that the value of HCI to the UK e-economy isnít lost forever, particularly as there is nothing on the horizon to replace it.î

The HCI Alliance has outlined a number of ways in which HCI could be modified to deliver against wider policy objectives and has put forward these suggestions for discussion. These include:

- Tighter guidelines on eligible equipment
- Capping the benefit of the tax exemption at the basic rate of tax
- Reducing the annual value of the tax exemption
- Independent monitoring of HCI sales
- Revisiting the rules relating to salary sacrifice schemes for those on the National Minimum Wage
- Improving the link between HCI and e-Learning Services
- Establishing a self-regulatory industry body
- Establishing closer links with other Digital Inclusion programmes
- Establishing one central point of responsibility within Government for all Digital Strategy initiatives.