Pay Machine Games Duty

Overview

1. 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

3 working days

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.

When the penalty is applied Penalty
1 day after deadline Between £100 and £400, depending on how many late returns you’ve previously filed
6 months after deadline £300 or 5% of the MGD due (whichever is higher)
12 months after deadline £300 or 5% of the MGD due (whichever is higher)

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

2. Bank details for online or telephone banking, CHAPS, Bacs

Make your payment to HM Revenue and Customs’ account.

Account name Sort code Account number
HMRC Shipley 08 32 10 12001020

Use your reference number

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

You’ll find it on:

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.

Check your bank’s transaction limits and processing times before making a payment.

Overseas payments

Use these details to pay from an overseas account.

Account number (IBAN) Bank identifier code (BIC) Account name
GB03BARC20114783977692 BARCGB22 HMRC Shipley

HMRC’s banking address is:

Barclays Bank PLC
1 Churchill Place
London
United Kingdom
E14 5HP

Direct Debit

3. 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

4. By debit or credit card online

You can pay online.

There’s a fee if you pay by credit card. The fee isn’t refundable.

HM Revenue and Customs (HMRC) no longer uses BillPay. You’ll be directed to a new service to pay your tax online.

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

You’ll find it on:

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.

Making more than one card payment

From 1 January 2016, HMRC will limit the number of times you can use a credit or debit card within a certain time to pay your tax.

There isn’t a set limit – it depends on HMRC’s view of what’s reasonable based on payment card industry standards and guidance.

The rules apply to multiple card payments against the same tax – you can only make extra card payments if each one’s for a different tax, eg Corporation Tax and employers’ PAYE.

If you’re unable to pay your Machine Games Duty bill in full by card, you should use another payment method like a bank transfer.

At your bank or building society

5. 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.

Pay online if you want to pay by debit or credit card.

At the Post Office

6. At the Post Office

You can only pay up to £10,000 at a 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

7. By cheque through the post

You can send a cheque by post to HM Revenue and Customs (HMRC).

HMRC
Direct
BX5 5BD

You don’t need to include a street name, city name or PO box with this address.

If you have a reply envelope showing a different address (HMRC, Bradford BD98 1YY), you can still use the envelope to post your cheque.

Allow 3 working days for your payment to reach HMRC.

What to include

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 either:

  • the payslip HMRC sent you if you file a paper return
  • your HMRC online account if you file your return online

If you file a paper return, send your payslip with your cheque.

If you file online, send a letter including:

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

Don’t fold or staple your cheque.

Check your payment received

8. 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

9. 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.

Last updated: 23 September 2016

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