Feeds

OFT intros simpler terms for Home Computing Initiative

Less red tape, no income tax liability

  • alert
  • submit to reddit

The essential guide to IT transformation

The Office of Fair Trading has cut at least some of the red tape tangling up employers trying to implement schemes which allow staff to work from home using company PCs.

OFT yesterday unveiled a consumer credit licence that will, for the first time, cover employers' Home Computing Initiative (HCI) schemes and allow firms to loan computer equipment to employees free of any income tax liability.

Under the terms of the Group Licence, OFT now considers the agreements between employers and employees participating in the schemes will be consumer hire agreements as regulated by the Consumer Credit Act 1974.

The OFT said employers will be covered by the group licence so long as they are undertaking activities within its terms.

However the government agency added that the Group Licence will cover only those agreements between "employers who provide or make available to their employee/s or a member of their employee/s' family or household, computer equipment under an employee benefit scheme designed to allow the employee to take advantage of any income tax exemption for that benefit, in particular that provided by Section 320 of the Income Tax (Earnings and Pensions) Act 2003."

Penny Boys, OFT executive director, said: "The group licence enables employers to provide home computing benefits to staff without requiring them to apply individually for a consumer credit licence for this purpose."

Whitehall is to launch guidelines next week for employers planning to implement HCI schemes on 19 Jan. ®

Boost IT visibility and business value

More from The Register

next story
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
XBOX One will learn to play media from USB and DLNA sources
Hang on? Aren't those file formats you hardly ever see outside torrents?
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.