Fujitsu Siemens Computers’ UK managing director, Steve Kendall-Smith, is calling for the Government to reverse its removal of tax exemption on Home Computing Initiative (HCI) schemes. The amendment, which was announced in the Budget last week, will see the elimination of tax relief on HCI schemes that allow employers to loan home computers to staff at affordable rates.

Fujitsu Siemens Computers has been at the forefront of developing an offering for HCI schemes since the Government’s relaunch of the initiative in January 2004. Like many other UK companies, Fujitsu Siemens Computers has witnessed HCI grow in popularity and evolve from its status as an initiative to becoming a micro-industry in its own right. Indeed it employs a large number of UK staff who help in the successful administration of the schemes.

Far from being a “white-collar” tax perk, Fujitsu Siemens Computers’ own experience is that 75 per cent of take-up of HCI schemes is from employees from the lower rate taxation band, and 60 per cent of those are ‘blue-collar workers’.

Steve Kendall-Smith comments: “We were astonished to hear the Chancellor’s announcement last week around the removal of these extremely popular HCI schemes. It seems to fly in the face of the Government’s well-publicised stated aim to help bridge the UK’s ‘digital divide’. Many of the employees who take up the HCI scheme are manual workers who want to provide their children with a PC at home and allow them to benefit from the educational advantages that this brings.

“It’s been reported that the abolishment of the HCI schemes will bring in an extra £150 million, but we would ask the Government to consider what the long-term cost will be to both UK businesses who have invested in delivering these schemes, and also to low-income households who will be left lagging further behind in this high-tech age we live in. We urge the Government to re-consider its decision to remove this tax as a matter of urgency.”

Over the past 18 months, Fujitsu Siemens Computers has assisted over 70 NHS Trusts, 20 borough, city and county councils, six universities and colleges, two housing associations and numerous corporate organisations in implementing an HCI scheme. The company has also seen a lot of interest from the UK’s Small to Medium Business (SMB) community, who have expressed a desire to help their employees have an affordable home computer for them and their families.

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About Fujitsu Siemens Computers:

Fujitsu Siemens Computers is the leading European IT provider with a responsible strategic focus on next-generation Mobility and Business Critical Computing products, services and solutions. With a portfolio of exceptional depth, our offering extends from handhelds through desktops to enterprise-class IT infrastructure solutions. Fujitsu Siemens Computers has a strong presence in all key markets across Europe, the Middle East and Africa. Leveraging the strengths, innovation and global reach of our joint shareholders, Fujitsu Limited and Siemens AG, we make sure we meet the needs of our customers: large corporations, small and medium enterprises and private users.

For more information on Fujitsu Siemens Computers, please visit: http://www.fujitsu-siemens.co.uk