MGD DEADINE EXTENDED – NOW 11^TH JANUARY 2013

HMRC has issued a reminder that ALL venues operating gaming machines need to register by 11^th 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 1^st February 2013. The HMRC warns that applications received after 11^th 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.

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.