Machine games duty
If you have a gaming machine available for play in your business premises you should have already registered with HMRC to pay machine games duty (MGD). This new duty came into force on 1 February 2013 to replace the amusement machine licence duty (AMLD) and VAT on the gaming machine’s net takings. MGD is applied as a percentage of the machine’s net takings at either 20% or 5%, depending on the machine.
If you haven’t registered for MGD, and it does apply to your business, you can do so on the HMRC website. Once registered, you will be required to make quarterly returns of the MGD payable, in a similar fashion to VAT returns. We will be able to help you with these returns, but you need to do the initial registration for MGD.
Prior to 1 February VAT was due on the takings of gaming machines, but now they are VAT-exempt. This should have no effect on your business if the income from gaming machines is a small percentage of your total turnover. But if the gaming machines produce a significant proportion of your business income you may need to restrict the amount of VAT you reclaim on your business costs. Talk to us about the takings from your gaming machines and we can work out the position accurately for you.