Free ATMs 'at risk' say retailers

Household money

02 July 2017 | 9 Comments

Thousands of free cash machines at supermarkets and petrol stations could disappear after a tax ruling means retailers could have to pay far more tax on ATMs.

Several big retailers have launched an appeal to stop a new tax law from making them pay more business rates on ATMs.

Tesco, Sainsbury’s and the Co-operative Group are among the companies taking the Government to the Court of Appeal in an attempt to stop a legal ruling that would mean they have to pay more tax if they have cash machines.

The legal ruling in April upheld a decision from 2013 that cash machines that are built into the front of shops or petrol stations should be liable for a separate business rates bill.

If the ruling is upheld then it could cost the retail industry almost half a billion pounds in extra business rates.

The ruling was backdated to April 2010, meaning shops were landed with huge unexpected tax bills.

Avoid rip-off fees on your holiday with one of these credit cards

Cost of maintaining ATMs

Retailers currently pay £39.3 million a year to have cash machines – that’s an average £2,800 per ATM, according to rents and rates specialist CVS.

The decision to uphold the 2013 decision ruined retailer hopes that they would be able to get back the £200 million they’ve already paid for these extra business rates, and save them a further £200 million over the next five years.

The new business rates don’t apply to freestanding cash machines, just ones built into the front of a building.

The change means the number of ATMs liable for business rates soared from 3,140 in 2010 to 14,068 this year.

The ruling could mean many of those ATMs disappear.

The Association of Convenience Stores has warned that the tax will hit small retailers particularly hard and could mean ATMs are removed, or they start to charge people to use them.

Speaking of cash machines, if you do need to draw money it’s vital you make sure the ATM hasn’t been tampered with by fraudsters.

Spot any one of these five tell-tale signs and we’d strongly advise you head off in search of another (hopefully fee-free) machine.

Comments

Be the first to comment

Do you want to comment on this article? You need to be signed in for this feature

Copyright © lovemoney.com All rights reserved.

 

loveMONEY.com Financial Services Limited is authorised and regulated by the Financial Conduct Authority (FCA) with Firm Reference Number (FRN): 479153.

loveMONEY.com is a company registered in England & Wales (Company Number: 7406028) with its registered address at First Floor Ridgeland House, 15 Carfax, Horsham, West Sussex, RH12 1DY, United Kingdom. loveMONEY.com Limited operates under the trading name of loveMONEY.com Financial Services Limited. We operate as a credit broker for consumer credit and do not lend directly. Our company maintains relationships with various affiliates and lenders, which we may promote within our editorial content in emails and on featured partner pages through affiliate links. Please note, that we may receive commission payments from some of the product and service providers featured on our website. In line with Consumer Duty regulations, we assess our partners to ensure they offer fair value, are transparent, and cater to the needs of all customers, including vulnerable groups. We continuously review our practices to ensure compliance with these standards. While we make every effort to ensure the accuracy and currency of our editorial content, users should independently verify information with their chosen product or service provider. This can be done by reviewing the product landing page information and the terms and conditions associated with the product. If you are uncertain whether a product is suitable, we strongly recommend seeking advice from a regulated independent financial advisor before applying for the products.