Our tax preparation specialists tell you how to pay your MGD to HMRC

At DSR Tax Claims Ltd, we know that making sure you have paid what you owe to HMRC can sometimes be a tricky task. That’s why our experts want to help make life as easy as possible for you by sharing our specialist knowledge with you. So, whether you are wanting more information about VAT or need to know about charitable tax relief, our handy guides are here to help. All our information is based on HMRC sources, so you can rest assured that these guides are filled with helpful and accurate information.

When do you need to pay Machine Games Duty?

Like VAT, you need to send a Machine Games Duty (MGD) return and pay your duties each 3 months. You need to make payment within 30 days of the end of your accounting period. If that deadline falls on a weekend of bank holiday, you need to make sure your return and payment are received by HMRC on the last working day before.

You need to make sure you pay by your deadline or HMRC may issue a penalty, and interest on your unpaid MGD.

There are a number of ways you can pay your MGD but you are no longer able to make any payments to HMRC at the post office.

How long it takes your payment to reach HMRC depends on the payment method you use because some take longer than others.

  • Same day/ next day: online or telephone banking (using Faster Payments); online using a debit or corporate credit card; CHAPS or at your bank or building society.
  • Three working days: Bacs; by cheque or by Direct Debit (if you have already set one up for use with HMRC before and you only want to make a single payment).
  • Five working days: by Direct Debit, if you are making a single payment but you haven’t used this payment method with HMRC before.
  • 10 working days: by Direct Debit, if you are setting up an automatic payment plan, also known as a ‘variable payment plan’.

What are the penalties for late MGD returns?

The table below sets out the HMRC penalties you will receive for late filing:

When HMRC apply the penalty HMRC penalty
1 day after the deadline Between £100 and £400 depending on how many late MGD returns you have previously filed
6 months after the  deadline £300 or 5% of the MGD due (whichever is the greater amount)
12 months after the deadline £300 or 5% of the MGD due (whichever is the greater amount)

If you have received a penalty that you don’t believe you should, you can appeal to HMRC to quash the penalty.

How can you check your MGD payment has been received?

You can log into your HMRC online account to check if your payment has been received by HMRC. However, it can take up to 6 working days to update so if you are paying very close to the deadline, you might not be able to see your payment until after the deadline has passed.

What happens if you don’t owe anything to HMRC?

Even if you don’t think you have to pay anything to HMRC, you still have to file an MGD return. HMRC can still issue a penalty against you even if you don’t owe any MGD.

If you owe a negative amount, because you have paid out more in winnings than you have made in takings, it will be carried over to your next return and taken away from the MGD you owe in that accounting period.

How can DSR Tax Claims Ltd help?

We know that setting up a business can be hard work – there’s so much to think about and that’s before you start thinking about paying the various duties and returns. Our friendly team of tax specialists at DSR Tax Claims Ltd are on hand to help make life easier for you. We’re the experts at identifying your maximum allowable expenses so call us on 0330 122 9972 – we’re the tax experts you can trust.