Tax & admin Fred Heritage · 9 October 2017
Pound coin deadline could be ignored by thousands of small businesses
Thousands of small shop owners are likely to continue accepting old round pound coins after the Royal Mint’s official deadline for returning them passes on 15 October. The Federation of Small Businesses (FSB) has said that its memberscouldconsider continuing to accept the old pound coin after 15 October if their business faces significant disruption because of the short changeover period with the new 12-sided pound coin. Of particular concern to the FSB, which represents over 170, 000 firms, are firms which may have had to invest significant time and money in modifying coin-operated machinery in order to accommodate the new pound coin. Such businesses may have included food and drinks machine vendors, or arcade games machine operators, for example. Commenting ahead of the 15 October deadline, national chairman at the FSB Mike Cherry said that for many small companies the changeover period may have proved too short. He added: While no business is obliged to accept the old coins beyond the deadline, it would help if small firms knew they were allowed a short transition period to collect the old coins if they wish to, and are willing to bank them, but not give out to customers. The cash struggles business owners have with new notes and coins this would provide a useful community service, allowing customers a few weeks to get rid of the final few pound coins in circulation. From midnight on Sunday 15 October, the old pound coin will loseits status as legal tender, and the government has advised shop and restaurant owners not to accept them after this date.
ABOUT THE EXPERTFred Heritage
Fred Heritage was previously deputy editor at Business Advice. He has a BA in politics and international relations from the University of Kent and an MA in international conflict from Kings College London.