REGISTER FOR THE NEW FRUIT MACHINE TAX
As we posted in our blog in July the new gaming machine tax for fruit machines called MGD (Machines Games Duty) is fast approaching. The start date is 1st February 2013 but you need to register for the MGD by the 1st January 2013.
We are pleased to say that the forms are now available to download at http://www.hmrc.gov.uk/machinegamesduty/mgd-online.htm. We advise that you get in early and complete the necessary paperwork as in the wisdom of the HMRC, the deadline of 1st January is over a pub and clubs busiest period, also HMRC will be with their feet up at home or in the pub enjoying their Christmas whilst you are scratching your head about the forms.
You need to make sure you have an AMLD (Amusement Machine Licence Duty) Custom & Excise licence in place for your fruit machine until the start of the MGD. We have listed some commonly asked questions about your AMLD licence change over and what if your licence comes up for renewal in the few months before the MGD starts.
We will be visiting all of our customers to explain and in fill in the necessary forms with them, if you are struggling with the forms or you just need some advise, regardless of where you are in the UK please give us a call and we will give you our advice.
Good luck with the changeover, we think this is a positive move for the industry and here are the questions and answers.
Question and Answers
The following question and answers are intended to supplement the information note issued with Amusement Machine License Duty renewal forms between mid-June 2012 and November 2012.
Q1. Why are you telling me about this now when AMLD does not finish until 31 January 2013?
A. An AMLD license usually covers a 12 month period. However, as AMLD finishes on 31 January 2013, you can no longer take out a 12 month licence. It is therefore only right that we tell you about this in advance so that you can decide whether to pay by cash up front or by Direct Debit.
Q2. Can I still change my license details before AMLD finishes?
Q3. Can I apply for a Direct Debit license for less than 12 months?
Q4. What is the easiest thing to do?
A. It will depend on your circumstances, but we would imagine most people may find it easier to apply for a Direct Debit licence. This may be less burdensome because we can automatically take instalments out of your account so that you are fully paid up to 31 January 2013.
Q5. What is the cheapest thing to do?
A. Again, it will depend on your circumstances, but taking out a short licence that you must pay in cash up front may be the cheapest option. However, although the Direct Debit facility will spread your costs by paying through monthly instalments, you will pay 5% more on these licences.
Q6. Why do you charge 5 per cent extra for Direct Debits?
A. A Direct Debit payment is taken in monthly instalments. The higher duty charge reflects the fact that you are paying your tax in arrears. However, this will not apply to any additional daily payment.
Q7. What is the additional daily payment?
A. If the licence start date is not the first of the month (meaning the licence won’t end on 31 January 2013), you will have a number of unlicensed days before the end of AMLD. To extend your licence up to and including 31 January 2013, you will need to pay an extra amount charged daily for these remaining days. We will write to you from November 2012 to tell you how much this amount will be and how to pay.
Q8. Does this additional daily payment also apply to licences paid by Direct Debit?
A. Yes. We will tell you how much your extra daily amount will be, and will take this amount by Direct Debit in the same way as your instalments.
Q9. Can I make the additional daily payment now?
A. No. We will not be able to calculate what you will owe until later in the year. We will write to you from November 2012 to tell you the amount you need to pay.
Q10. What happens if I don’t make the additional payment?
A. If you have an unlicensed period in January 2013 which you do not pay for, you will have failed to meet your legal obligations under the AMLD regime.
Q11. What happens if I don’t pay for an AMLD licence?
A. It is an offence to provide a licensable machine for play without a licence. You have a legal obligation to take out a licence. Depending on the circumstances, if you provide an amusement machine for play without a proper licence, you may:
- be liable to a civil penalty for failure to notify
- be issued with a default licence and assessment
- have all amusement machines on the premises seized, and/or
- be convicted of a criminal offence
Q12. If I buy an extra long AMLD licence, does that mean that this delays MGD payments?
A. No. MGD starts on 1 February 2013.