The British Beer and Pub Association is urging pubs to get ahead of the game and prepare for the introduction of Machine Games Duty.
MGD, which comes into effect from February 1, 2013, replaces Amusement Machine Licence Duty and VAT on gaming and SWP machine income. The BBPA has called on the sector to take steps to ensure they are ready for the change, as licensees must register their machines ahead of January 1.
Pubs can begin registering their machines from November 1. Not doing so could risk fines, the BBPA warned.
To help pub owners and operators, the association has published guidance on the process and how the new tax is calculated. MGD is charged at 20 per cent of net machine taking and could affect the amount of VAT that can be reclaimed, it said.
The guidance also highlights the important issue of where responsibility falls under the new system. For managed pub companies, it is the responsibility of the company to register for MGD, whereas for all others, it is the responsibility of the lessee, tenant or freeholder.
“Our key message is don’t delay, as MGD is now just around the corner,” said BBPA chief executive Brigid Simmonds. “This guidance should help pubs and pub companies in negotiating the new tax system.”
