Tens of thousands of pubs could face penalties if they fail to sign up to the new machine games duty (MGD) before the end of 2012, writes Michelle Perrett.
HM Revenue & Customs (HMRC) has revealed that only 353 pubs have successfully registered for the new tax system but it has been estimated by the British Beer & Pub Association (BBPA) that more than 30,000 pubs are expected to be affected by the new regime, which comes into force next February.
Licensees can be charged a penalty of between 30% and 100% of any unpaid tax. The higher penalties are charged if HMRC believes the tax avoidance was deliberate.
MGD will replace both amusement machine licensing duty — the annual charge for making a gaming machine available for play — and standard-rate VAT on net takings.
Trade associations are concerned about the low registration numbers and the lack of awareness among licensees, especially in the lead-up to the busy Christmas period.
A BBPA spokesperson said: “This very low level of registrations is clearly a concern — more than 30,000 pubs need to register, but it appears only around 1% have completed the process so far.
“HMRC certainly needs to do all it can to raise awareness in the short period of time left before the deadline for registration expires — we have guidance to help licensees register on our website at www.beerandpub.com
“Given that awareness of the new system is clearly a concern, we hope that HMRC will focus on getting the word around rather than looking to levy penalties — but pubs still need to be aware that penalties could happen.”
Kate Nicholls, strategic affairs director of the Association of Licensed Multiple Retailers, said: “A lot of licensees are not sure about the timetable. It can take about two weeks to register if there are any problems with the registration. You can’t do it at the last minute.”
For more information on machine games duty, visit the HMRC website at www.hmrc.gov.uk/machinegamesduty/machine-games-duty.htm
