|
LONDON, 23 March 2006: Yesterday's budget saw a shock announcement from the Chancellor, Gordon Brown regarding the tax exemption on home computers and mobile phones.
The move means that the current tax exemptions for employer-provided computer equipment will be removed from 6 April 2006 and that the tax exemption for mobile phones is being “refocused”.
Mr Brown claimed the reason behind the move was: “Many employees have benefited from the tax exemption to get a computer into their homes, but the Government now wishes to focus support on groups with the poorest access to technology, to meet the goals set out in the Digital Strategy.”
The tax relief on computers was introduced in 1999 as part of the government's attempt to improve the nation's IT skills and use of the internet. However, the number of employers implementing the scheme begun to spiral after January 2004 when the government launched its Home Computing Initiative (HCI) making it the fastest growing employee benefit in the UK, according to the HCI Alliance.
The announcement came as bolt from the blue to the HCI and employee benefits industry who had made significant investment in promoting the benefit under the impression that the scheme had a five year window from 2004.
Michael Whitfield, Managing Director of thomsons online benefits comments: “This news came as a complete shock, not only to us but the entire employee benefits market. Not least because of the number of HCI schemes currently being implemented by government departments!”
“Our latest research Employee Rewards Watch 2006 showed that a third of employers had already implemented HCI with another third planning to do so this year. Many of the companies who were planning to implement this year do come from the more traditional industries with the kind of employee base the government is looking to target. Clearly this move will have a big impact on the future growth of salary sacrifice schemes”.
- Ends -
Notes to editors:
1. Michael Whitfield, Managing Director of thomsons online benefits is available for interview on request. Please contact the press office on 020 7802 5855 to arrange this.
About thomsons online benefits
thomsons online benefits was founded in 2000 to revolutionise the way that benefits are administered and communicated. They have won awards for both their consultancy and technology skills including: "Communication Provider of the Year" in the Employee Rewards & Benefits Awards 2006, "Corporate Adviser of the Year" in the Money Marketing Financial Services Awards 2004 and 2005, "Most Effective Use of an International Benefits Strategy" in the Employee Benefits Awards 2004, "Advanced Supply Chain Integration" National Innovation category, & "E-business" for London region in the DTI Ecommerce Awards 2004. thomsons online benefits is authorised and regulated by the Financial Services Authority.
Further information can be found at www.thomsonsonlinebenefits.com
For more information contact:
Caroline O'Keeffe
Tel: 020 7802 5855
Email: press@t-bx.com
|
