Pubs warned to register for Machine Games Duty from 1 November

Machine Games Duty (MGD) is the new taxation system for gaming and skills with prize machines.

It replaces Amusement Machine Licence Duty and VAT on machine income from 1 February 2013.

MGD is charged at 20 per cent of net machine takings, and there are associated effects on the amount of VAT that can be reclaimed.

The British Beer and Pub Association has published a new guide (PDF) which covers key questions, such as how the registration process works and how the new tax is calculated.

The guidance also highlights the important issue of where responsibility falls under the new system. For managed pub companies, it is the responsibility of the company to register for MGD, whereas for all others, it is the responsibility of the lessee, tenant or freeholder.

BBPA chief executive Brigid Simmonds said: “Our key message is don’t delay, as MGD is now just around the corner. This guidance should help pubs and pub companies in negotiating the new tax system.”

HMRC has a dedicated online portal which can be accessed at www.hmrc.gov.uk/machinegamesduty​