New pound coins and notes have been in circulation since 2017, but you could still come across old money that can’t be spent and wonder what to do with it
Whether you’ve been handed old pound notes in your shop or found a jar of coins lying around, don’t worry. You can still exchange them for new money in a few different ways.
What can you do with old pound coins and notes?
If you’ve got old money and don’t know what to do with it, you have a few options:
- deposit at the bank – most UK banks and building societies still accept old coins and notes if you have an account with them. You may need to visit a branch and potentially fill out a deposit slip
- exchange at the Bank of England – if your bank no longer accepts old currency, you can send old notes directly to the Bank of England. They’ll exchange old banknotes for their face value. But the Bank of England doesn’t accept coins
Can you refuse old money from a customer?
Yes, as a private business, you don’t have to accept any specific form of payment, including cash. You should politely refuse old notes or coins if you spot them at the point of sale.
It’s important to remind your staff of this too – especially in cash-heavy businesses like cafés or shops.
What if you’ve been given counterfeit money?
You need to hand any counterfeit money you receive to the police. They’ll fill in a NCO-1 form and provide you with a receipt and incident number.
You can’t get your money back if you’ve been given a counterfeit note, which makes spotting a counterfeit note even more important.
One of the reasons new style bank notes were introduced is to make them harder to fake. This video from the Bank of England goes through the key features of the new notes. Making it easier to spot a fake one.
What coins and notes are considered old?
There are a few different versions of the new bank notes, but it’s specifically old paper-style notes that are no longer accepted.
The following are no longer considered legal tender:
- old round £1 coins (replaced in 2017 by the 12-sided version)
- paper £5 and £10 notes (replaced by polymer versions in 2017 and 2018)
- paper £20 and £50 notes (replaced by polymer versions in 2020 and 2021)
These can’t be spent in shops or used in vending machines anymore — but they still hold their value and can be exchanged in banks.
Should your business go cashless?
Lots of small businesses, especially in hospitality, decide to go cashless as this can make managing payments simpler. This means they’ll only accept digital payments, for example by card or contactless payment.
There are lots of benefits to going cashless for your business. Avoiding any issues with old or counterfeit cash is one benefit, but there are other positives too, like:
- reduced theft – without having physical cash in your store, your earnings are safe from break-ins
- fewer errors – your staff are less likely to miscalculate your daily takings or give the wrong change
- lower handling costs – you don’t need to waste time making trips to the bank. And you save on processing costs from the bank
- better accounting data – because everything is logged in your POS system, you have clear data on what you’ve earned
What to do if you’ve been given old pound coins or notes – FAQs
Can I still use old £1 coins in shops?
You can no longer use the old, round shaped £1 coins in shops. These were withdrawn in 2017.
Are old paper £20 and £50 notes still valid?
The old paper £20 and £50 notes are no longer legal tender, but you can exchange them at banks or with the Bank of England.
Will my bank accept old coins?
Some banks may accept old coins if you’re an account holder. Check with your branch first.
Can I send old notes by post to the Bank of England?
Yes you can post old bank notes along with a form. The Bank of England will send you the equivalent value.
Are old coins or notes worth more than face value?
Old coins or notes aren’t usually worth more than face value, but rare coins or notes may be valuable to collectors. Check online or with a coin dealer.
Can I legally refuse old money from a customer?
Yes, businesses can choose what payment types they accept, including refusing old or damaged money.
Tax and finance guides for small businesses
- Do I need public liability insurance?
- What can I claim on tax? A guide to self-employed expenses
- What is a balance sheet?
- What is zero-based budgeting?
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