Pay Machine Games Duty
Printable version
1. Overview
You must file your Machine Games Duty (MGD) return and make your payment within 30 days of the end of your accounting period. An accounting period is 3 months unless you’ve arranged with HM Revenue and Customs (HMRC) to use a different accounting period.
This guide is also available in Welsh (Cymraeg).
If the deadline falls on a weekend or bank holiday, make sure you file your return and your payment reaches HMRC on the last working day before it, unless you’re making an online or telephone bank transfer (Faster Payments) or paying by debit or corporate credit card online.
Ways to pay
Make sure you pay HMRC by the deadline. You may have to pay a penalty and interest if you pay late.
The time you need to allow depends on how you pay.
You can no longer pay at the Post Office.
Same day or next day
- online or telephone bank transfer using Faster Payments or CHAPS
- by debit or corporate credit card online
- approve a payment through your online bank account
- at your bank or building society
3 working days
- online or telephone bank transfer using Bacs
- by cheque through the post
- Direct Debit - if you’re making a single payment and you’ve set up one for HMRC before
5 working days
- Direct Debit - if you’re making a single payment and you have not set up one for HMRC before
10 working days before you file your first return
- Direct Debit - if you’re setting up an automatic payment (known as a ‘variable payment plan’)
Penalties for late returns
You’ll get a penalty if you miss the deadline for filing returns.
When the penalty is applied | Penalty |
---|---|
1 day after deadline | Between £100 and £400, depending on how many late returns you’ve previously filed |
6 months after deadline | £300 or 5% of the MGD due (whichever is higher) |
12 months after deadline | £300 or 5% of the MGD due (whichever is higher) |
If you disagree with a penalty
If you’ve been given a penalty and you think it’s wrong, you can appeal to HMRC.
2. Direct Debit
You can only pay by Direct Debit if you’ve registered for Machine Games Duty (MGD) online.
Use your HM Revenue and Customs (HMRC) online account to set up a Direct Debit.
You can set up:
- a single payment each time you file your return
- automatic payment of the duty shown on your return (known as a ‘variable payment plan’)
Single payment
You can make a single one-off payment by Direct Debit online.
It takes 5 working days to process a Direct Debit payment the first time you set one up. It should take 3 working days next time if you’re using the same bank details.
Variable payment plan
You can set up regular automatic Direct Debit payments online only. Choose a ‘variable payment plan’ when setting up your Direct Debit.
It takes at least 10 working days to process a payment when you first set it up. Make sure your payment will reach HMRC before the deadline.
Your payment will then be taken automatically every time it’s due.
You’ll need to cancel your Direct Debit if you want to change to a different payment method.
3. Approve a payment through your online bank account
You can pay your Machine Games Duty (MGD) directly using your online or mobile bank account.
When you’re ready to pay, start your MGD payment. Select the ‘pay by bank account’ option. You’ll then be directed to sign in to your online or mobile banking account to approve your MGD payment.
The payment is usually instant but sometimes it takes up to 2 hours to show in your account.
You’ll need to have your online banking details ready to pay this way.
4. Make an online or telephone bank transfer
Make your payment to HM Revenue and Customs’ account.
Account name | Sort code | Account number |
---|---|---|
HMRC Shipley | 08 32 10 | 12001020 |
Use your reference number
You’ll need to use your 14-character Machine Games Duty (MGD) payment reference number starting with ‘X’ when you pay.
You’ll find it on:
- your HM Revenue and Customs (HMRC) online account
- the MGD Registration Certificate HMRC sent you
How long it takes
Payments made by Faster Payments (online or telephone banking) will usually reach HMRC on the same or next day, including weekends and bank holidays.
CHAPS payments usually reach HMRC the same working day if you pay within your bank’s processing times.
Bacs payments usually take 3 working days.
Check your bank’s transaction limits and processing times before making a payment.
Overseas payments
Use these details to pay from an overseas account.
Account number (IBAN) | Bank identifier code (BIC) | Account name |
---|---|---|
GB03BARC20114783977692 | BARCGB22 | HMRC Shipley |
HMRC’s banking address is:
Barclays Bank PLC
1 Churchill Place
London
United Kingdom
E14 5HP
5. By debit or corporate credit card online
You can pay online.
There’s a fee if you pay by corporate credit card or corporate debit card. The fee is not refundable.
There’s no fee if you pay by personal debit card.
You cannot pay by personal credit card.
You’ll need to use your 14-character Machine Games Duty (MGD) payment reference number starting with ‘X’ when you pay.
You’ll find it on:
- your HM Revenue and Customs (HMRC) online account
- the MGD Registration Certificate HMRC sent you
HMRC will accept your payment on the date you make it (even on bank holidays and weekends) - not the date it reaches HMRC’s account.
If you’re unable to pay your MGD bill in full by card, you should use another payment method like a bank transfer.
6. At your bank or building society
You can only pay Machine Games Duty (MGD) at your bank or building society if you file a paper MGD return.
Use the payslip HM Revenue and Customs (HMRC) sent you.
Make your cheque payable to ‘HM Revenue and Customs only’.
Write your 14-character MGD payment reference number starting with ‘X’ on the back of your cheque. You’ll find the payment reference number on the payslip.
HMRC will accept your payment on the date you make it (if you pay it from Monday to Friday) and not the date it reaches HMRC’s account.
Pay online if you want to pay by debit or credit card.
7. By cheque through the post
You can send a cheque by post to HM Revenue and Customs (HMRC).
HMRC
Direct
BX5 5BD
You do not need to include a street name, city name or PO box with this address.
Allow 3 working days for your payment to reach HMRC.
What to include
Make your cheque payable to ‘HM Revenue and Customs only’.
Write your 14-character Machine Games Duty (MGD) payment reference number starting with ‘X’ on the back of your cheque.
You’ll find your MGD payment reference number on either:
- the payslip HMRC sent you if you file a paper return
- your HMRC online account if you file your return online
Your payment may be delayed if you do not fill in your cheque properly.
If you file a paper return, send your payslip with your cheque.
If you file online, send a letter including:
- your name, address and telephone number
- your MGD payment reference number
- the amount you’re paying
Do not fold or staple your cheque.
8. Check your payment has been received
View your HMRC online account to see if your payment has been received - it should update within 6 working days.
9. Tell HMRC no duty is due
You must still file your return even if you calculate that you do not owe any Machine Games Duty (MGD). You may have to pay a penalty if you do not.
If you owe a negative amount (you’ve paid out more in winnings than you’ve taken in playing charges), it’ll be carried over to your next return and subtracted from the amount of MGD due.