After registration, you should file Machine Games Duty returns every three (3) months.
The MGD deadline for filing a return is within 30 days of the end of the accounting period.
HMRC will send you a reminder by email (if they have your email address from the online registration).
In some cases, you might be able to arrange a different accounting period with HM Revenue and Customs (HMRC).
Weekends and UK Bank Holidays do not count as working days. Make sure the payment reaches HMRC account on the last working day before (unless using the ‘Faster Payments’ method or paying by debit or credit card).
Ways of Paying Machine Game Duty
You must ensure all payments reach the bank account of HM Revenue and Customs (HMRC) before the deadline date. The method you use for Machine Games Duty payment will determine how much time you need to allow for clearance.
Same Day (or next day)
- Bank or Building Society
- CHAPS (Clearing House Automated Payment System)
- Debit or corporate credit card online
- Online or telephone banking when using the ‘Fast Payments’ method.
3 Working Days
- Bacs (Bankers’ Automated Clearing Services)
- Direct Debit (if set up on a previous occasion)
- Cheque through the post
5 Working Days
- Direct Debit (if you have not set one up on a previous occasion)
10 Working Days (before first return)
- Direct Debit using a ‘variable payment plan’ (setting up automatic payment)
Note: Under the Machine Games Duty rules you can no longer pay the quarterly bill at a Post Office.
Machine Games Duty Late Filing Penalties
You can get a financial penalty if you miss a deadline for filing returns. The HMRC Compliance Handbook explains how failing to file on time can result in penalties and interest.
Note: You can make an appeal to HM Revenue and Customs if you received a penalty and disagree with a tax decision.
- Penalty applied one (1) day after the deadline: Between £100 and £400 (subject to how many previous late returns you filed)
- Penalty applied six (6) months after deadline: £300 or 5% of the MGD due (whichever is higher)
- Penalty applied twelve (12) months after deadline: £300 or 5% of the MGD due (whichever is higher)
Bank Details: Online or Telephone Banking, CHAPS, Bacs
You can use CHAPS, Bacs, or Faster Payments to pay HM Revenue and Customs.
|Account Name||Sort Code||Account Number|
|HMRC Shipley||08 32 10||12001020|
Payment Reference Number
You will have a 14-character Machine Games Duty (MGD) registration number. You can find your payslip reference number:
- On the MGD Registration Certificate sent to you by HM Revenue and Customs (HMRC).
- Via your company HMRC online account (select ‘View account’ and then ‘Accounting period’).
Note: Using the wrong reference number is likely to delay the clearance of your payment.
How Long it Will Take
Online or telephone banking (using Faster Payments) usually reach HMRC account the same day or the following day. This includes weekends and bank holiday periods in the United Kingdom.
CHAPS payments should go into the HMRC account on the same working day. But, they must be made within the bank processing cut-off time. As a rule, Bacs transactions take three (3) working days to clear.
Note: Every bank has its own processing limits and processing cut-off times. Check these limits and times before planning a date to send bill payments.
Pay Your Machine Games Duty Bill from Overseas
You should use these bank details if you will pay your MGD bill from an overseas account.
|Account Number (IBAN)||Bank Identifier Code (BIC)||Account Name|
The banking address for HM Revenue and Customs is:
Barclays Bank PLC
1 Churchill Place
Paying Machine Games Duty by Direct Debit
You need to register for Machine Games Duty online to pay by Direct Debit. Use your HM Revenue and Customs online account to set up (either):
- A single payment plan set up for each time you file your return.
- Automatic payment of the duty shown on your return called a ‘variable payment plan’.
Single Payment Plan
The single one-off payment by Direct Debit online takes five (5) working days to process a payment the first time you set it up. Following that, it usually takes three (3) working days (providing you use the same bank details).
Variable Payment Plan
It must be online, but you can choose a ‘variable payment plan’ as part of setting up the Direct Debit for MGD. The first payment will take at least ten (10) working days to process. Thus, you should ensure the payment will reach HMRC account before the deadline.
The payment then gets taken as an automatic process each time that it is due. Changing to a different method of paying Machine Game Duty would mean you must cancel your Direct Debit.
Note: You would be able to pay your tax bill by Direct Debit after setting up the payment system with HMRC.
Paying by Debit or Corporate Credit Card Online
You can pay tax online by entering your payment details into the system. There is a non-refundable fee for paying by corporate credit card. You may need to use one of the other payment methods for MGD if the card does not cover the full amount.
Your ‘charge reference’ will be your 14-character Machine Games Duty (MGD) registration number found on:
- Your HM Revenue and Customs (HMRC) online account.
- The MGD Registration Certificate sent to you by HM Revenue and Customs (HMRC).
Note: HMRC will accept this kind of payment on the date it’s made and not the date that it reaches their account (including bank holidays and weekends). But, you cannot pay this kind of tax bill with a personal credit card.
Paying at a Bank or Building Society
This payment method only applies if you file a paper MGD return. If so, use the payslip sent to you by HM Revenue and Customs.
You can make the bill payment at a bank or building society branch by cash or by cheque (made payable to ‘HM Revenue and Customs only’ followed by your MGD reference number).
Note: HMRC will accept this kind of payment on the date it’s made (Monday to Friday) and not the date that it reaches their account.
Paying by Cheque (through the post)
Use this address if you send a cheque by postal methods to HM Revenue and Customs. Make it payable to ‘HM Revenue and Customs only’ followed by your Machine Games Duty (MGD) reference number. Allow three working days. There is no need to include a street name, city name, or a PO box.
Send your payslip along with your cheque if you file a paper return (do not fold or staple the cheque). If you file returns online you should send a letter that includes:
- Your name, address, and telephone number.
- Your Machine Games Duty registration number.
- The total amount that you are paying.
Check if HMRC Received Your Payment
You can check whether HM Revenue and Customs received your payment (or not) in your HMRC online account. As a rule, they will update the account within six (6) working days.
Telling HMRC No Payment is Due
You need to file a Machine Games Duty return even if your workings show you do not owe a payment. Failing to do so can result in a penalty.
What happens if you owe a negative amount? It may happen if you paid out more in winnings than the amount you gained in playing charges. In this case, it would carry over to the next return and get subtracted from the amount due for MGD.