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Calling all You Publicans Out There – Time Gentlemen, Please!

HMRC have decided to call ‘Time Gentlemen, Please’, or at least they believe it is time to bring in another headache (or is it a hangover?), for the Publican trade.

If you Publicans find keeping book-keeping records and sorting out the VAT is a chore already, then just wait until 1st February 2013, when there are some more new rules to think about and account for. There is a new Tax on the way, named the Machine Games Duty Tax.

The new Duty comes into force on 1st February 2013 and on-line registration with HMRC for thisnew Duty must be completed by 1st January 2013.

The rules state anyone responsible for premises from which machine games are provided for play must register. The MGD (Machine Games Duty) will be payable where customers pay to play a game on a machine in the hope of winning a cash prize which is greater than the cost to play. There will be two rates of MGD (Machine Games Duty), a lower rate at 5% for machines where the maximum cost per game on that machine is 10pence and the cash prize is £8 or less, (personally, I cannot see many machines at this level, and if there were would they realistically be worth having a go on?), and the standard rate at 20% on all other machines.

Now just before you Publicans are up in arms about this new Tax, and so are driven to drink, (sorry about the pun here!), there is actually some good news! – the new MGD replaces both the Amusement Machine Licensing Duty and the standard rate of VAT normally payable on the Net Takings of the machine.

So, obviously you Publicans will not be paying twice, as some of you sharp eyed ‘Mine Hosts’ may have been expecting.

Well, that’s my Blog done for today, so I am now off down to my local to check out which of their machines qualify for the 5% or 20% MGD rate! – might just sample a couple of their beers at the same time though!

At JCL (Jones Cooper Limited) Goole Accountants, we have experts on board to assist anyone in the Publican trade who may need extra help and advice regarding this new Tax, or are in need of Book-keeping or Payroll services.

Rickey

Rickey Cooper FFA, FMAAT, ATT

JCL – Jones Cooper Limited

One Response to “Calling all You Publicans Out There – Time Gentlemen, Please!”

  1. Looking around…

    I like to surf around the online world, often I will just go to Stumble Upon and read and check stuff out…

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