The ATM industry is asking the UK Government to reverse its policy on applying business rate valuations to ATM machines that are built into the front of shops, especially in rural locations where they often provide the only way for people to access cash.
Commercial properties are rated for business tax by the Valuations Office Agency (VAO).
In 2013, the VAO decided to apply valuations to the ATMs built into shop fronts, despite the expectation that the machines would simply be classed as another part of the retailer’s business.
The charges are now being imposed and it is estimated that more than 10,000 businesses with ATMs will be hit by large bills, some of which could be backdated to 2010.
As a result, affected retailers could be hit with an additional annual tax bill of up to £6,000, with some of the more popular ATM locations facing even higher charges.
The industry has argued that the charges are a tax on cash and that millions of people in the UK depend on the service.
ATM Industry Association (ATMIA) – the body for the ATM industry – has also expressed concerns that free-to-use ATMs could soon disappear because small independent shops might not have the financial ability to pay for them.
Recent changes brought in by the Government mean that councils can keep half of any net increases in business rates and this may be extended to 100 per cent, so the ATMIA believes that ATMs will be viewed as a lucrative source of income by local authorities.