On 28th March, 1.5 billion new 12-sided pound coins will enter circulation. There are a number of concerns for SMEs in regards to the change, which is why it’s important that business owners prepare in advance. ICAEW has covered important points that SMEs should bear in mind to ensure the switch to the new pound coin is as smooth as possible.
Collect all old coins
The old one pound coins will cease to be legal tender on 15th October 2017. This means that SMEs will have to dig out all of their old one pound coins and spend or bank them before the October cut-off date.
Adapt current business premises and property
The new one pound coin is different in shape and weight to the old coin, therefore businesses will be required to adapt their vending machines, lockers, self-service checkouts and shopping trolleys. Additionally, local councils will need to update parking meters.
Be aware of further changes
A new £10 note will be added to circulation in the summer of 2017, following on from the success of the new polymer £5 note. Looking further into the future, a new £20 note is expected to be introduced in 2020. SMEs will need to schedule in time to prepare for these modifications.
Don’t leave it until the last minute
With the day-to-day running of a business being extremely time consuming and energy intensive, it’s important that SME owners plan ahead. Leaving it until the last minute to update machines or to collect old one pound coins could result in business owners losing out financially.
If business owners are unsure of what steps they need to take in planning for a new pound coin, they should seek advice. The Royal Mint website displays useful information regarding the change. Additionally, SMEs are eligible to receive free business advice from the ICAEW Business Advice Service.
Clive Lewis, ICAEW head of enterprise, says, ‘SMEs will be preparing for the new pound coin at a time when business costs are increasing because of the fall in the value of the pound against other currencies. To avoid further costs when implementing this change, SME owners should ensure they are on top of the introduction of the new pound coin and do not leave preparation until the last minute.’