{"id":14063,"date":"2023-07-18T08:12:35","date_gmt":"2023-07-18T08:12:35","guid":{"rendered":"https:\/\/www.theukrules.co.uk\/?page_id=14063"},"modified":"2023-08-16T10:58:06","modified_gmt":"2023-08-16T10:58:06","slug":"machine-games-duty","status":"publish","type":"page","link":"https:\/\/www.theukrules.co.uk\/rules\/business\/tax\/machine-games-duty\/","title":{"rendered":"Machine Games Duty (MGD) | Dutiable Machine Game Excise UK"},"content":{"rendered":"
MGD is a duty of excise charged on playing different types of ‘dutiable machine games’ in the United Kingdom.<\/p>\n
As a rule, having machines on your premises that give cash prizes means you must pay Machine Games Duty. You pay MGD on installed and portable types of:<\/p>\n
Not all game machines are subject to MGD. For example, the excise duty would not be liable on machines where the prize won has less value than the cost of playing.<\/p>\n
Likewise, you do not pay MGD on the takings from charity events, on lottery machines, tournaments, or gaming machines used for domestic use.<\/p>\n
The person with the responsibility for Machine Game Duty needs to register. The same person must send regular returns, pay any duty of excise owing, and keep proper records.<\/p>\n
Note<\/strong>: Takings from machine games is exempt from VAT if you pay MGD. A guide explaining Machine Games Duty (MGD) is also available in Welsh language<\/a> (Cymraeg).<\/p>\n <\/p>\n <\/p>\n You have the responsibility to register for, and pay, Machine Games Duty, if you hold any of these licences:<\/p>\n A different set of Machine Games Duty rules apply for the tenant of a pub. As the tenant, you are responsible for MGD. The premises licence owner is not liable – usually the owner of the pub. So, you would need to cancel your registration if you stop being the tenant.<\/p>\n Note<\/strong>: As a rule, supplying the machines does not make you responsible for MGD. An exception applies if you also hold the licence or the permit for the premises.<\/p>\n What happens if the premises does not have a licence? In this case, HM Revenue and Customs will ask someone else to register for MGD and pay the duties. Often, the person HMRC ask will be the manager or the owner of the premises.<\/p>\n Not registering for Machine Game Duty in United Kingdom when you should can result in a financial penalty.<\/p>\n <\/p>\n <\/p>\n You must register for MGD at least fourteen (14) days before making the machines available to play. One method is to add MGD to your HMRC account. You would need to create an account as an organisation if you only have a personal tax account.<\/p>\n To register for Machine Games Duty<\/a> you will need:<\/p>\n You must keep accurate records after you have registered for MGD. The records must show how you worked out the figures for your return and that the amount you paid is correct. You need to keep records for Machine Games Duty on file for four (4) years in case HM Revenue and Customs want to inspect them.<\/p>\n<\/p><\/div>\n You can inform HM Revenue and Customs that you want to register a business for Machine Games Duty<\/a> using the MGD1 form. Fill in the registration form if you prefer to file the paper returns.<\/p>\n<\/p><\/div>\n<\/div>\n <\/p>\n <\/p>\n
\nWho is Liable for Registering and Paying MGD?<\/h2>\n
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\nRegistering for Machine Games Duty<\/h2>\n
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After MGD Registration<\/h5>\n
Filing Paper Returns for MGD<\/h5>\n
\nALSO IN THIS SECTION<\/h4>\n