If you are a game operator in the UK, this guide will be helpful for you to gather information about Machine Games Duty (MGD), which is a tax that is applied to the profits made by operators of gaming machines in the UK. However, not all the games are meant to be under the list of machine games’ duties. So if you are the operator or any relevant person in this regard, be aware of the basic facts.

Moreover, MGD was introduced in 2013 to replace the Amusement Machine Licence Duty (AMLD) and the VAT on gaming machines. Let us get further delved into the discussion to hold on to basic queries regarding machine game duty and how to handle it with efficacy in the UK.

Talk to one of our intelligent and clever professionals to get your further queries about the machine games duty in the UK. We will ensure to come up with the best possible solution.

What is Machine Game Duty?

Machine Games Duty (MGD) is a UK tax that is imposed on the profits made by businesses that provide gaming machines, such as slot machines and fruit machines. The tax applies to all machines that are available for use by the public and that offer the opportunity to win a cash prize. The tax is payable by the operator of the gaming machine, and the rate of tax depends on the type of machine and the stake and prize levels offered.

The tax is designed to ensure that the gambling industry contributes to the UK’s public finances and to promote responsible gambling. It’s better for businesses that provide gaming machines to understand their obligations under MGD and to seek professional advice to ensure that they are complying with the relevant tax rules and regulations.

When to Pay Dutiable Machine Game Duty?

Dutiable Machine Games Duty (MGD) is payable by the operator of the gaming machine, and the payment is due on a quarterly basis.  It’s important for businesses that provide gaming machines to keep accurate records of their income and expenses related to the machines and to ensure that they are paying the correct amount of MGD. If a business fails to pay the correct amount of MGD, it may be subject to penalties and interest charges.

Who is Liable for Registering and Paying MGD?

The operator of the gaming machine is liable for registering and paying MGD. An operator is defined as a person who has the right to use the machine, either by owning it or by renting it from someone else. The operator is responsible for registering with HMRC and for paying the correct amount of MGD on a quarterly basis.

If the operator is a company, then the company is responsible for registering and paying the tax. If the operator is an individual, then the individual is responsible for registering and paying the tax. It’s important for operators to keep accurate records of their income and expenses related to the machines.

What is the Way to Register for Machine Games Duty?

To register for Machine Games Duty (MGD), the operator of the gaming machine must complete an online registration form on the HMRC website. The registration form requires the operator to provide information about their business, such as their name, address, and contact details, as well as details about the gaming machines they operate.

Once the registration form has been completed, HMRC will send a confirmation letter to the operator, which will include their MGD registration number. The operator must keep this number safe, as it will be required when making MGD payments.

What will Happen After MGD Registration?

After registering for Machine Games Duty (MGD), the operator of the gaming machine will receive a registration number from HMRC. This number is important, as it will be used to identify the operator when making MGD payments and submitting MGD returns.

The operator will be required to pay MGD on a quarterly basis and will need to keep accurate records of their income and expenses related to the gaming machines. The operator will also be required to submit MGD returns to HMRC, which will provide details of the MGD due for the relevant quarter. It’s important for operators to comply with the relevant tax rules and regulations.

What is the Way to File Paper Returns for MGD?

Machine Games Duty (MGD) returns must be filed online using the HMRC website. Paper returns are not accepted for MGD. To file an MGD return, the operator of the gaming machine must log in to their HMRC online account and complete the relevant form. The form will require the operator to provide details of their income and expenses related to the gaming machines for the relevant quarter, as well as details of the MGD due.

The return must be filed and the MGD paid by the deadline, which is one month after the end of the relevant quarter. It’s important for operators to keep accurate records of their income and expenses related to gaming machines.

What Will Happen After Filing a Return?

After filing a Machine Games Duty (MGD) return in the UK, the operator of the gaming machine will need to pay the MGD due to HMRC by the deadline, which is one month after the end of the relevant quarter.

Once the payment has been made, the operator will receive a confirmation from HMRC. It’s important for operators to keep accurate records of their MGD payments and returns.

The Bottom Line

To conclude, we can say that operators of gaming machines in the UK are required to register for Machine Games Duty (MGD), keep accurate records of their income and expenses related to the gaming machines, and file MGD returns on a quarterly basis.

MGD returns must be filed online using the HMRC website, and payments must be made by the deadline, which is one month after the end of the relevant quarter. We hope these few minutes of reading will help you to develop a better understanding of handling Machine Games Duty in the UK.

Are you seeking professional help to know how to pay for machine games duty in the UK? Why not get help from the experts at the CruseBurke? Talk to us now and we will get back to you instantly.

Disclaimer: The general information provided in this blog about machine games duty in the UK includes text and graphics. It does not intend to disregard any of the professional advice in the future as well.