Machine Games Duty comes into play
HMRC pressed the start button on machine games duty (MGD) on 1 February, as the new tax regime came into force.
Machine games duty (MGD) replaces amusement machine license duty (AMLD) and will be charged where customers pay to play a game on a slot, quiz or other machine in the hope of winning a cash prize greater than the cost to play.
If a machine is subject to MGD, the income from the machine becomes VAT exempt.
According to HMRC, tax on machine games will now be entirely linked to takings, rather than including a fixed fee element on all machines.
Last year, tax advisers and the Revenue urged those with gaming machines on their premises to register for the tax regime.
If they haven’t already registered, those who continue to operate machines without registering could face a penalty from HMRC.
There is still time to register with the Revenue, however, through the MGD Online Registration Service.