News

Despite pause in fee cuts, future of UK ATMs remains uncertain

August 10, 2018

Link might have hit pause on its program of cutting reimbursement rates to ATM deployers in the U.K., but cash-prefered Brits aren't out of the woods just yet.

The question of business rates on ATMs inside businesses is yet to be decided by the courts.

If the current rate structure is upheld, the U.K. still stands to lose up to 10,000 machines within the space of a few weeks, according to reporting by the Daily Mail.

The case revolves around the tax status of ATMs built into an exterior wall of a business. An ATM within the store is considered to be part of the store.

However, "hole-in-the-wall" ATMs are considered to be a separate business from the store and are taxed as such. It's a distinction with a big difference.

At stake is 500 million pounds ($641 million) that the government's Valuation Office Agency has collected in back payments of the business rates, which would be returned to merchants if they prevail in court.

If the VOA wins, the agency will continue to collect 4,000 pounds annually on 10,000 hole-in-the wall machines — if they remain in place, which is not likely, the plaintiffs say.

A decision is due to come down soon from the Court of Appeal; whichever way it goes, the case is likely to go to the Supreme Court, the report said.

Ultimately, it will be cash-carrying consumers who win or lose.