Machines Games Duty – an update on the year

Accounting, Tax/VAT Cases, VAT l



Machines Games Duty (MGD) was introduced in February this year, replacing VAT on takings of gaming machines and also the Amusement Machine Licence Duty (AMLD).

 Rates of Duty

Lower Rate – 5% on net takings (monies received less winnings paid out) on machines where the stake is 10p per play maximum and £8 or less maximum pay out.

Standard Rate – 20% on net takings on all other machines except Category B3A machines which are exempt from MGD, VAT and AMLD.

Shared Takings with Gaming Machine Provider

It is the responsibility of the licensee of the premises where the gaming machine is played to be registered for MGD and hold the certificate which allows them to have machines on their premises.

In most cases the Machine provider will empty the machines on a regular basis and leave a receipt of the monies taken, the MGD will usually be calculated and left on the premises for the licensee to declare and pay.

Late Filing/Payment of Duty

It is also the licensee’s responsibility to file the MGD Returns on time (30 days after the period end) and pay the duty on time (30 days after the period end).  HMRC are very strict at applying the penalties of £100 for late filing and £100 for late payment, interest is charged daily on late payments and further penalties apply if debts remain unpaid 6 months after the penalty date.

How to file

Paper returns must be posted, and should arrive at HMRC with the money having been deposited in HMRC’s bank 30 days after the period end.

We can file your returns online if you wish, please provide us with your MGD Registration Number to set up online submission.

How to pay MGD

 MGD payments must be made by yourselves, either using the payment slip provided with the return and posting to HMRC, cheques made payable to HMRC followed by your MGD Reg No.:

HM Revenue & Customs

BD98 1YY

At the Post Office using your payment slip, cheques made payable to Post Office Ltd (allowing 3 working days before deadline).

By DD or by Debit Card using HMRC online services, see