Duty is payable on the net takings of any machine which pays out a cash prize which is greater than the cost to play at a rate of either 5%, 20% or 25%. This will include gaming machines from most categories and also apples to most Quiz Machines as they pay out a cash prize. A quarterly return is required to declare your payment amount and records should be kept for future reference as with any taxation. We can of course help you with all aspects of collection and duty requirements.
The only type of machines that are exempt are B3A machines as they are classed as a Lottery Machine. Club Lottery Ticket Machines (pull-tabs) are also exempt from MGD for the same reason. If you are unsure if MGD applies to a particular machine, give us a call and we would be happy to advise.
B3A gaming machines requirements
Maximum number of machines:
Up to a maximum of 1
Licences and permits required
B3A machines can only be made available in:
- Members Clubs- for example, working men’s clubs, branches of the Royal British Legion and clubs with political ties, or
- Miners’ welfare institutes
Category B3A machines cannot be sited in commercial clubs. You must have a club machine permit from your local licensing authority to make them available.
HM Revenue & Customs (HMRC) are within their rights to issue a penalty if a location is found to have Fruit Machines available for play before your business is registered for Gaming Duty and your business details listed on the on-line MGD Register. You may also be fined for late or non-payment of Machine Gaming Duty and HMRC take it very seriously. Your details will appear on the on-line register which can be checked by entering your post code here:
https://www.tax.service.gov.uk/machine-games-duty-search/
If you are thinking of adding a Fruit Machine to your inventory, then we can help you with all aspects of Gaming Duty compliance, from registration, calculating MGD amounts and even completing quarterly returns.