Machine Games Duty (MGD)
  • A new tax
  • From 1 February 2013
  • MGD replaces VAT charged on the income from gaming machines and Amusement Machine Licence Duty (AMLD).

MGD will be paid on the profits of machine games. A "machine game" is a game played on a machine for a maximum cash prize greater than the cost to play. A gaming machine or a skills with prizes machine (SWP) may be a machine subject to MGD.

The person responsible for premises where machine games are played on which MGD will be due must register for the duty with HMRC. In most cases this will be the licence or permit holder which allows machines to be provided for play on the premises. If more than one person may is responsible for a premises only one person needs to register.

What is happening and when?

The MGD online registration service was launched on 1 November 2012. If machine games will be available for play on 1 February 2013, those responsible for premises must apply for registration before 11 January 2013 to avoid a penalty.

The penalty for failure to register can be up to 100% of any tax due.

The MGD online registration service will enable applicants or their agents to register for MGD online and make changes to their registered business details online.

Over the coming months, the service will also let registered people and agents submit and view returns online.

Machine Games Duty for Agents

HMRC's Machine Games Duty for Agents service allows agents to carry out a number of tasks online on behalf of their clients.

Key features of the service include:

  • setting up online authorisation to act on behalf of clients
  • changing client's registration details

In time, the service will also allow agents to:

  • submit client's MGD Returns online
  • view client's MGD Returns that have been submitted online

Points of interest

  • Those responsible for premises on which dutiable machines will be available for play at 1 February 2013 will be able to register for MGD from 1 November 2012.
  • Registrations in respect of existing operations must be made before 1 January 2013 to allow HMRC to process applications in plenty of time before 1 February 2013.
  • Businesses which have registered online for MGD will be automatically enrolled for the MGD online service. An ‘activation’ code (sometimes referred to as a PIN) will be sent in the post to the business address. This is required to activate the MGD online service

Find out more about Machine Games Duty Online

Find out more about How to sign up for Machine Games Duty for Agents

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