New ATM Tax Could Damage Small Business
The taxman has proposed a new tax on cash machines that could lead to thousands being closed in rural locations.
ATMs outside stores attract extra business rates and officials want to extend this charge to machines inside a shop or pub.
The Valuation Office Agency (VOA), is behind this ATM shake-up, which new figures estimate will add around £5,000 to an average retailer’s business rates.
Industry sources estimate the tax grab will cover 40,000 machines, many of them currently free to use.
Campaigners fear it will devastate smaller towns and villages where banks have closed down and stores or pubs offer the only way to withdraw cash.
James Lowman, of the Association of Convenience Stores, is outraged by the planned levy, he insists cash machines provide an important service that shouldn’t be marred by extra taxation.
“Retailers are being punished for offering a free service and it’s wrong”, he said.
If it succeeds, it would mean stores would face two lots of business rates – one for an ATM and another for the retail space surrounding it.
Ron Delnevo, of the ATM Industry Association, which represents independent operators, said: ‘This would be a real nail in the coffin for ATMs. Whoever pays the rates, it will be uneconomic. This is happening because local authorities are running around desperate for cash.’
Small businesses are already suffering from a wave of branch closures, with the big banks shutting around 1,000 branches this year alone.
Mike Cherry of the Federation of Small Businesses accuses the VOA of attempting another “tax grab”, where cash is the reigning priority in tourist hotspots around the UK.
A VOA spokesman said: ‘Our duty is to maintain accurate rating lists, and this includes consistent treatment of ATMs. We treat all businesses equally.’