Mon - Sat 9.00 - 18.00 Sunday Closed
0345 512 0102

Guide to Machine Games Duty Tax in UK

Machine Games Duty (MGD) is a tax on certain types of gaming machines played for money or prizes. MGD was introduced in the UK on 1 February 2013 to replace Amusement Machine Licence Duty (AMLD) and to simplify the taxation of gaming machines.

MGD is payable by anyone who is responsible for operating a gaming machine, which includes the owner or lessee of the machine, or the person who hires out or supplies the machine. The tax is payable on the profits generated from the use of the machines.

The tax is applicable to various types of gaming machines, including slot machines, quiz machines, and other similar devices that are played for money or prizes. There are some exemptions and reliefs available, for example, where machines are provided for charitable purposes or in certain circumstances where the machines are located in licensed premises.

The amount of MGD payable depends on the type of gaming machine and the amount of money received from players. The current rate of MGD is 20% of the net takings from machines that give cash prizes and 5% for machines that do not give cash prizes.

The steps you have to take:

     

      • Register for Machine Games Duty: You need to register with HM Revenue and Customs (HMRC) if you are responsible for paying machine games duty. You can register online on the HMRC website.

      • Gather Information: Gather all the necessary information required to complete the return. This includes the total amount of money received from all gaming machines, the amount of machine games duty payable and any exemptions or reliefs that may apply.

      • Fill in the Return: Use the HMRC’s online service to fill in the machine games duty return. You will need to provide details such as the period the return covers, the total takings from gaming machines, and any deductions or exemptions.

      • Pay Duty: If you owe any machine games duty, you will need to pay it online or by bank transfer. HMRC will provide you with a reference number and bank details to make the payment.

      • Submit the Return: Once you have completed the return and made the payment, submit the return online to HMRC. You should receive a confirmation of submission.

    It is important to ensure that the return is accurate and submitted on time to avoid any penalties or interest charges. If you are unsure about any aspect of completing the return, you can seek guidance from HMRC or contact us at Finanche and we will be able to guide you.