Star Pubs & Bars helps licensees register for Machine Games Duty

Star Pubs & Bars is helping its lessees register for the new Machine Games Duty (MGD) with the implementation date only days away.

MGD replaces both amusement machine licensing duty - the annual charge for making a gaming machine available for play - and standard-rate VAT on net takings.

Premises have until this Friday (11 January) to register for the new MGD system which comes into force on 1 February.

HMRC has said it will make every effort to process late registrations but has warned operators that it cannot guarantee that applications received after 11 January will be processed by 1 February.

Licensees can be charged a penalty of between 30% and 100% of unpaid tax. Penalties may be issued even if there is no tax due.

Over 65% of the Star Pubs & Bars estate had signed up to MGD by the end of 2012 and the company says it is on track for all its pubs to be registered by the end of the week.

The company has arranged for all its lessees to be visited and given help filling in their forms, which it will then process on behalf of its lessees.

Chris Moore, trading director for Star Pubs & Bars, said: “We recognise that the process has been complicated and confusing so rather than do what most other pub companies have done and leave it to lessees to register for the tax, we have arranged for them to be visited and given help on site.”

In December the Publican’s Morning Advertiser revealed that  2196 pubs have had their online registrations approved and 603 have had their paper registrations approved. This is despite the fact that over 30,000 pubs are expected to be affected by the new tax regime.

HMRC is strongly advising pubs to register is via its MGD Online Registration Service at www.hmrc.gov.uk/machinegamesduty/mgd-online.htm.

For more information on Machine Games Duty, visit the HMRC website at www.hmrc.gov.uk/machinegamesduty/machine-games-duty.htm