This is a freeview 'At a glance guide to Machine Games Duty (MGD).

Machine Games Duty (MGD) has applied since 1 February 2013, when it replaced VAT and Amusement Machine Licence Duty (AMLD) charged on the income from gaming machines.

  • MGD is 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 is responsible for a premises, only one needs to register.

MGD rates

 

Cost to play

Prize

MGD rate

Machine type 1: lower rate

20 pence or less

£10 or less

5%

Machine type 2: standard rate 

21 pence to £5

£11 or more

20% 

All other machine types: higher rate

More than £5

Any

25%

 

Where a machine has more than one game type, the highest applicable rate is used to calculate MGD on all takings. 

MGD registration

  • The MGD online registration service was launched on 1 November 2012.
  • You register by adding MGD to your HM Revenue and Customs account.
    • If you do not have an account, or only have an account for personal tax, create an account as an organisation.
  • You should register for MGD at least 14 days before you make your machines available to play.
    • If machine games were available for play on 1 February 2013, those responsible for premises must have applied 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.

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.
  • Submit client's MGD returns online.
  • View client's MGD Returns that have been submitted online.

Overpaid MGD: case law

In Coyles Millar v HMRC [2021] TC08355 the First Tier Tribunal (FTT) found that a four-year limit applies to repayments of overpaid Machine Games Duty (MGD) under section 137A Customs and Excise Management Act 1979.

External links

Excise Notice 452: Machine Games Duty

Machine Games Duty for Agents: HMRC Online Services

HMRC guidance Machine Games Duty


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