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Online registration has opened for the machine games duty (MGD) regime, which will come into force on 1 February 2013.
Parties responsible for premises on which machine games are provided for play must register with HMRC for MGD by 1 January. Relevant persons will usually be those who hold a machine game licence or permit, or be the premises’ operators.
The Revenue’s new online MGD service can be used by those responsible for premises from where machine games are provided, or their agents, to register and de-register, as well as make changes to the information given during registration.
MGD replaces both amusement machine licensing duty and standard-rate VAT on net takings. It will be payable where customers pay for a game on a machine in the hope of winning a cash prize greater than the cost of play.
There will be two rates: 5% for machines where the maximum cost per game is ten pence and the cash prize is £8 or less, and 20% for all other games subject to MGD, including those offering several games subject to the duty where one or more of the games would attract the standard 20%.
Individuals wishing to take responsibility for premises following instigation of the duty will be obliged to register before providing machine games for play.
