Today is the MGD deadline!

Have you missed the MGD deadline?

Today, the 11th of January is the cut off date for HMRC to process all applications for the new MGD (machine games duty) in time for the start date of this new tax. If you have not registered yet we would suggest you do it immediately as HMRC has said if any premises providing machines for play that are liable for MGD are not registered by or sent in by today there will be penilaties. Our advice is better to register late than never, so you if you have not yet registered please go to our previous blogs about MGD to find the link to HMRC’s web page to register.MGD is a tax for all fruit machines and also other type of machines like quiz machines. Good luck and if you do get confused we are at the end of the phone to help if needed.

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New Fruit Machine Registration Deadline Extended


HMRC has issued a reminder that ALL venues operating gaming machines need to register by 11th January 2013 to avoid a penalty charge.

HMRC had advised to try and make use of its online registration service, a paper form application is also available to download online.

The duty will apply to all machines which offer a cash prize. The standard rate will be 20%, this will be reduced to 5% where the cash prize if £8 or less. The duty will come into effect from 1st February 2013. The HMRC warns that applications received after 11th January 2013 may NOT be processed in time to avoid a penalty.

Who is responsible for MGD?

The responsibility to register and submit the returns is that of the tenant/lessee or freeholder and not the premise license holder. If you just manage the premises on behalf of another company, then the company may be liable to register and submit the MGD returns. You should seek advice if you are unsure as there is a legal obligation for someone to be registered.

I just rent  or profit share my  fruit machines, does this matter?

No it does not. The liability of MGD rests with you and not the machine supplier.

How will MGD affect me financially?

Generally speaking you should be in a better position with machines that were subject to AMLD. The tables below show the difference between AMLD and MGD on a cashbox of £500 over a period of 1 month.

  AMLD (Old Tax)
Net Cashbox: £500.00
VAT: £83.33-
AMLD: £85.00
Total: £331.67
  MGD (New Tax)
Net Cashbox: £500.00
VAT: £0.00-
MGD: £100.00
Total: £400.00

As you can see in this example you should be £68.33 better off with an average cashbox of £500 per month. Anything over approx £2500 per month will see a negative effect.

If you have any questions about MGD please feel free to contact me on 07854 772576.


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