Changes to the taxation of cash machines outside shops could result in smaller retailers being hit with increased bills and there is concern that the tax charge could result in the demise of free ATMs for shoppers. Norfolk Chamber of Commerce is calling for this to be reviewed.
In 2013 the Valuation Office Agency (VOA) ruled that cash machines situated outside the front of a shop should have a separate rates bill to the main business.
Business rates can cost convenience stores up to £15,000 per year, per machine. It is thought that more than 10,000 ATMs are liable to the charge, which will vary according to how often the machine is used and how much cash is withdrawn.
With the charges set to be backdated to 2010, there is concern that the service is becoming too expensive and financially unviable for an increasing number of smaller shops.
Around 60% of convenience stores currently offer ATMs for their customers to use, but changes to the way rates are calculated could lead to more shops having to introduce charges for using cash machines.
Norfolk Chamber has written to the Government highlighting the issue and calling for ministers to to scrap the charge on free ATMs, arguing that they offer customers access to their money at a time when many banks in town are closing. The Chamber will also be looking for local authority power to grantdiscretionary rate reliefto cover ATM rates.
Caroline Williams CEO Norfolk Chamber of Commerce said:
“A representative of the VOA said: ‘We are currently reviewing ATM sites to ensure all sites that should be assessed are correctly rated. This treats all businesses equally, and ensures they pay their fair share of the overall business rates bill. ‘We will continue to consult with the machine operators who will be affected by this exercise.”
In response to strong lobbying from the Chamber network and other business representation organisations In March 2015 the Government pledged the most ‘ambitious’ and ‘wide-ranging review’ of business rates for a generation, paving the way for a major overhaul of the existing system.
The review will examine how businesses use property, what the UK can learn from other countries about local business taxes, and how the system can be modernised so it better reflects changes in the value of property. It is set to report its findings by the 2016 Budget.
