In the past year we have seen the introduction of a new five pound note and the new 12 edged pound coin having been introduced into circulation on 28 March 2017.
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?
– 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.
What to do now, 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 your 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.
What comes next, a new ten pound note on the horizon? In summer of 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 to be used as opposed to animal fats which have been used in the current five pound notes.