In the past year we have seen the introduction of a new five pound note into circulation, so with the new 12 edged pound coin being introduced into circulation from 28 March 2017, we have formulated some top tips on what your business can do to prepare.
The new pound coin has been introduced in a bid to reduce the amount of counterfeit coins in circulation, which in turn causes a loss to businesses and the taxpayer.
When will the current coins cease to be legal tender?
As a business you need to be prepared for when the current notes and coins cease to be legal tender, for ease of reference the key dates are as follows:
5 May 2017 – the old five pound note will cease to be legal tender; and
15 October 2017 – the old one pound coins will cease to be legal tender.
From these dates, businesses are no longer under an obligation to accept the old tender, they can however, be deposited in most high street banks.
Five Tips for your business in order to prepare
The introduction of the new coin has not been without criticism that preparing for the new pound coin diverts attention away from running a business, therefore we have come up with our top five tips to help you prepare and points for you to consider.
Be prepared – start collecting all old currency. It is important not to leave it to the last minute to update equipment and collect the old pound coins or the business may lose out financially.
Ensure your premises are updated to accept the new coins! Coin accepting equipment such as shopping trolleys, vending machines to lockers, will need to be adapted to accept the new coin. Assistance can be sought at https://www.thenewpoundcoin.com/ and business owners should contact machine manufacturers as soon as possible to prepare for any necessary upgrades to equipment.
Consider changes required to storing and banking. When cashing in pound coins at the bank, due to the different weights, the old and new coins will need to be cashed in separately.
Update employees on the new features and key dates. Staff need to be aware what the business will accept and up to which point. It is also important to note that although the new pound coin is harder to counterfeit, there is still the possibility so staff need to be aware of the main features of the new pound coin and how to spot a fake (guidance on spotting a counterfeit coin can be found at http://www.royalmint.com/discover/uk-coins/counterfeit-one-pound-coins ).
Update customers on which coins can be used and accepted! Until the 15 October, the old one pound coins may still be in circulation, therefore you need to update customers on what will be accepted, for example if you update lockers to accept the new pound coin only.
A new ten pound note on the horizon?
In summer 2017, following the success of the five pound note, a new ten pound note will be introduced into circulation. Followed by a new 20 pound note to be introduced by 2020, however, this may be delayed due to production being put on hold while the Bank of England consider whether palm oil is t be used as opposed to animal fats which are used in the current five pound notes.
It is important for businesses to be prepared with the introduction of the new pound coin to avoid accumulating further costs and time being wasted further down the line.
The information provided in all of our blogs reflects only a narrative of some elements to consider on the topic. The blogs do not contain considered legal advice and should not be relied upon as advice. Please see our website terms and conditions for full details of our disclaimer. If you are interested in obtaining advice, please contact one of our lawyers who will be happy and able to advise you on your own particular circumstances.