Machine Games Duty comes into force on the 01 February 2013 and will replace Amusement Machine Licence Duty and VAT on machine income.
Machine Games Duty applies to a wide range of machines, including Jackpot, Amusement With Prize (fruit) machines and Skill With Prizes (quiz) machines. Skill With Prizes are not currently liable for Amusement Machine Licence Duty.
Machine Games Duty is payable on all machines where the prize is greater than the stake. If the stake is over 10p or the cash prize is over £8 – the rate for Machine Games Duty is 20% of the net cashbox.
Machines with a stake of 10p or less and a prize of £8.00 or less attract a 5% rate.
You must register machines for Machine Games Duty between 01 November 2012 and 01 January 2013.
If a machine is installed after 01 February 2013 you must register at least 14 days before the machine is made available for use.
Liability for the tax will rest with the tenant/lessee or independent operator in the case of tenanted/leasehold or freehold pubs. For managed companies, liability will rest with the pub operating company. Companies/operators will need to be registered for Machine Games Duty ahead of implementation; registration opens on 1 November 2012 and runs until 1 January 2013.
You can register online or by post.
You need to check your position in relation to Machine Games Duty and be aware of any implications the change in legislation may have on your VAT status.
After 01 February 2013, a quarterly online or paper return must be completed.
Further guidance and more details are available on the Government website or the BBPA website.
For more information, please contact our Employment & HR team on 01332 340 211.