PracticeAccounting FirmsAre you prepared for the £1 changeover?

Are you prepared for the £1 changeover?

With less than three months left before the old round pound coin loses its legal tender status, The Royal Mint and HM Treasury are urging accountants to prepare for the 12-sided pound coin

With less than three months left before the old round pound coin loses its legal tender status, The Royal Mint and HM Treasury are urging accountants to prepare for the 12-sided pound coin.

In order to make the transition accountancy firms should ensure their equipment is up to date and able to accept the 12-sided coin. The Royal Mint warns that any firms with equipment that still accepts round coins may be at risk of encountering counterfeit coins.

The 12-sided coin came into circulation on 28 March of this year, in response to the increasing prevalence of counterfeit round pound coins. According to the Royal Mint approximately one in 20 round pounds in circulation is counterfeit.

To appropriately prepare for the changeover firms are being advised to bank the two different pound coins in separate bags, and to bank their round pounds first, if possible.

Finally, firms should encourage customers to spend their round pounds before midnight on 15 October, when the round pound officially loses their legal tender. However, the round pounds can can still be deposited into customer’s accounts at most high street banks after October 15.

Exchequer Secretary to the Treasury, Andrew Jones MP, said: “We are now reaching the point where there are more new 12-sided pound coins in circulation than round pounds.

“With less than 100 days before the old round pound ceases to be legal tender, the clock is ticking. We are urging businesses who are yet to do so, to update their systems and inform their customers ahead of the October 15 deadline.”

CEO and Deputy Master of The Royal Mint, Adam Lawrence, added: “The Royal Mint is very proud to have delivered the new 12-sided one pound coin and ensuring a smooth transition is now our top priority. We hope our announcement about the changeover point in July will encourage those accounting businesses who have not yet upgraded their equipment to do so ahead of the October 15th deadline.”

Earlier this month, Nicky Morgan was elected as Chair of the Treasury Select Committee, beating out staunchly pro-Brexit MP Jacob Rees-Mogg.

Accountancy Age also recently spoke to Mel Stride, Financial Secretary to the Treasury, about the Treasury’s upcoming agenda.

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