The new 12 sided pound coin will enter circulation on 28 March and all restaurant, bar and shop staff are being asked to get ready for the release. This will also apply to vending machines, car park ticket machines, self-service checkouts and many more. Any coin handling businesses will have to update their equipment to cope with the changes.
The existing round edged coin will cease to be legal tender on 15 October 2017 so there is very little time for companies to update equipment and get used to the new coin. After 15 October the existing coin will not be accepted in Shops etc. nor given out as change although you will be able to deposit the existing round coin into bank accounts but this may only be for a limited period.
If you are a cash handling business there are various things that you will need to be prepared for prior to 28 March such as a) check whether or not you use equipment that uses the £1 coin, b) make necessary changes to your cash handling machines, and c) update and train staff on the new coin and any new equipment.
During the period from 28 March to 15 October both coins will be legal tender but if your business is using coin machines you will need to explain to the public which coins are being accepted by your equipment. After 15 October all of your coin handling machines will require to accept only the new 12 sided coin.
The reason given by The Treasury for the need to change the shape of the coin is security. Apparently one in thirty £1 coins in circulation at any one time is a counterfeit. The new coin will be the most secure coin in the world with a number of new security features including a hologram which is designed to prevent counterfeits.
All cash handling businesses should by now be well advanced in their preparations for accepting the new coins. Individuals collecting £1 coins in their piggy bank at home should remember to spend them or return them to their bank by 15 October 2017.
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If you have any questions regarding how the new pound coin could affect your business, please contact our solicitors today.
