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Home Computer Initiative

Answer

The Government keep all taxes under review and have been looking at how they can focus their support on groups with the poorest access to technology, following the publication of the Digital Strategy paper in April 2005 which indicated that the Home Computer Initiative was poorly targeted.In addition, HM Revenue and Customs has evidence to suggest that in some cases employees were buying the computer not borrowing it, and that some employees were being offered equipment that is clearly not a computer”” within the spirit of the legislation.In view of these risks to the Exchequer, the Government took action at Budget 2006 to remove the exemption from benefit-in-kind tax charges and national insurance contributions for employer-provided computer equipment from 6 April 2006, and an RIA on this and the amendment to the tax exemption for mobile phones has been published.HM Revenue and Customs has put in place transitional arrangements to ensure that where the employer and employee had agreed in writing before 6 April 2006 the terms on which the computer was to be made available the tax exemption would apply even if the employee had not physically taken possession of the computer by 6 April 2006. The Office of Fair Trading will continue to issue directions under the Consumer Credit Act, providing it is in the hirer's interest to do so, until 5 September 2006.Further to the Digital Strategy, the Government published its ‘Inclusion through Innovation' report in November 2005, which looked at where Information and Communication Technology (ICTs) might deliver most benefit to excluded groups and considered how that might be achieved. In addition, the Government have written to representatives from industry inviting suggestions on the best way of refocusing our support on these target groups. Over the next few months the DTI will review the options put forward and consider how they would meet the Government's objectives.On 2 May, I announced two further measures which will:"set up a dedicated Digital Inclusion Team to ensure the best use of ICT in tackling social exclusion;""change the aims and objectives of the Digital Strategy to focus on inclusion, to reflect the shift in the Government's focus to a more targeted approach."

Secondary information

Type

Written question

Reference

62948; 445 c1719-21W;445 c1719-21W

Session

2005-06

Related items

Home Computer Initiative
Tuesday, 23 May 2006
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Home Computer Initiative
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Subjects

Home computing initiative

Link

View this Written question on www.publications.parliament.uk