Pay Machine Games Duty

Overview

You must file your Machine Games Duty (MGD) return and make your payment within 30 days of the end of your accounting period. An accounting period is 3 months unless you’ve arranged with HM Revenue and Customs (HMRC) to use a different accounting period.

If the deadline falls on a weekend or bank holiday, make sure you file your return and your payment reaches HMRC on the last working day before it (unless you’re paying by Faster Payments, debit card or credit card).

Ways to pay

Make sure you pay HMRC by the deadline. You may have to pay a penalty and interest if you pay late.

The time you need to allow depends on how you pay.

Same day or next day

• online or telephone banking (Faster Payments)
• By debit or credit card online
• CHAPS
• At your bank or building society
• At the Post Office

3 working days

• Bacs
• By cheque through the post
• Direct Debit - if you’re making a single payment and you’ve set up one for HMRC before

5 working days

• Direct Debit - if you’re making a single payment and you haven’t set up one for HMRC before

10 working days before you file your first return

• Direct Debit - if you’re setting up an automatic payment (known as a ‘variable payment plan’)

Penalties for late returns

You’ll get a penalty if you miss the deadline for filing returns.

If you disagree with a penalty

If you’ve been given a penalty and you think it’s wrong, you can appeal to HMRC.

Bank details for online or telephone banking, CHAPS, Bacs

Make your payment to HM Revenue and Customs’ account.

Use your reference number

Your payment reference is your 14-character Machine Games Duty (MGD) registration number.

You’ll find it on:

• your HM Revenue and Customs (HMRC) online account
• the MGD Registration Certificate HMRC sent you

How long it takes

Payments made by Faster Payments (online or telephone banking) will usually reach HMRC on the same or next day, including weekends and bank holidays.

CHAPS payments usually reach HMRC the same working day if you pay within your bank’s processing times.

Bacs payments usually take 3 working days.

Overseas payments

Use these details to pay from an overseas account.

HMRC’s banking address is:

Direct Debit

You can only pay by Direct Debit if you’ve registered for Machine Games Duty (MGD) online.

Use your HM Revenue and Customs (HMRC) online account to set up a Direct Debit.

You can set up:

• a single payment each time you file your return - if you’re filing your MGD return online or on paper
• automatic collection of the duty shown on your return (known as a ‘variable payment plan’) - if you’re filing your MGD return online

How much time to allow

How long you should allow for your payment to reach HMRC’s bank account depends on whether you’re making a one-off payment or you’re setting up a regular Direct Debit payment.

Single payment

Allow 5 working days to process a Direct Debit payment the first time you set one up. It should take 3 working days next time if you’re using the same bank details.

Variable payment plan

Set up your Direct Debit at least 10 working days before you file your return online to make sure your first payment reaches HMRC on time.

Your payment will then be taken automatically every time it’s due.

By debit or credit card online

You can pay online.

You’ll pay a 1.5% fee if you use a credit card. The fee isn’t refundable.

Use your 14-character Machine Games Duty (MGD) registration number as your ‘charge reference’.

You’ll find it on:

• your HM Revenue and Customs (HMRC) online account
• the MGD Registration Certificate HMRC sent you

HMRC will accept your payment on the date you make it (even on bank holidays and weekends) - not the date it reaches HMRC’s account.

At your bank or building society

You can only pay Machine Games Duty (MGD) at your bank or building society if you file a paper MGD return.

Use the payslip HM Revenue and Customs (HMRC) sent you.

You can only pay by cash or cheque. Make your cheque payable to ‘HM Revenue and Customs only’ followed by your MGD reference number. You’ll find your reference number on the payslip.

HMRC will accept your payment on the date you make it (if you pay it from Monday to Friday) and not the date it reaches HMRC’s account.

At the Post Office

You can only pay Machine Games Duty (MGD) at the Post Office if you file a paper MGD return.

Use the payslip HM Revenue and Customs (HMRC) sent you.

You can pay by debit card, cash or cheque made payable to ‘Post Office Ltd’.

HMRC will accept your payment on the date you make it (if you pay it from Monday to Friday) and not the date it reaches HMRC’s account.

By cheque through the post

Make your cheque payable to ‘HM Revenue and Customs only’ followed by your Machine Games Duty (MGD) reference number. You’ll find your reference number on the payslip HM Revenue and Customs (HMRC) sent you if you file a paper return or on your HMRC online account if you file your return online.

Send your payslip with your cheque. You won’t have a payslip if you filed your return online. You should send a letter instead, including these details:

• your name, address and telephone number
• your MGD registration number
• the amount you’re paying

Don’t fold or staple your cheque.

Send it to:

Allow 3 working days for your payment to reach HMRC.

Check your payment has been received

View your HMRC online account to see if your payment has been received - it should update within 6 working days.

Tell HMRC no duty is due

You must still file your return even if you calculate that you don’t owe any Machine Games Duty (MGD). You may have to pay a penalty if you don’t.

If you owe a negative amount (ie you’ve paid out more in winnings than you’ve taken in playing charges), it will be carried over to your next return and subtracted from the amount of MGD due.