Earlier this year the Royal Mint introduced a new pound coin into circulation thirty years after it was first created to address
its vulnerability to sophisticated counterfeiters.
Currently approximately one in thirty round pound coins in circulation is a counterfeit. The new coin was introduced with new features such as its 12-sides and bi-metal composition in an effort to reduce the costs of counterfeits to businesses and the taxpayer.
Prior to the 15th October for most people it’s simply a case of making sure you don’t have any of the old style coins lurking around your home or person whether that’s down the back of the sofa, in a money box or in your purse as after that date they will no longer be legal tender.
However if you run a business there are a few things to consider.
Up to the 15th October:
- you can accept both coins from your customers but should encourage your customers to spend round £1 coins first.
- to enable banks to process your coins return your round and new £1 coins in separate bags. When possible bank round £1 coins first.
- your equipment may be able to accept or dispense both £1 coins or just one. You need to check with your equipment suppliers and may need to upgrade your equipment.
- you will need to tell your customers which coins your equipment can accept.
After the 16th October:
- you are under no obligation to accept the round £1 coin from your customers and you should not distribute the round £1 coin. If you’re in the retail or hospitality sector you’ll need to update your staff on what they need to do.
- all your round £1 coins should have been banked by this date. However, the round £1 coin can continue to be deposited into a customer’s account at most high street banks and the Post Office. Though you should check with your bank on the details including deposit limits which may apply.
- all your coin handling equipment should be able to accept the new £1 coin. If your equipment continues to accept round £1 coins then you may be at risk of being targeted with counterfeit coins.
The Royal Mint website has further information and resources, including downloadable posters that you can display at tills and payment points.
