Machine Games Duty - Automated Penalty Issues
2014
Machine games duty (MGD) came into effect on the 1st February this year replacing the former amusement machine licence duty (AMLD) with first returns due from April onwards.
From the outset however it appear that the HMRC have been experiencing technical issues with the filing of MGD returns and the issue of automated penalties for late returns; in some instances customers who had filed returns online were receiving penalties for late service. The issue of penalties is automated with notices being issued by computer for those who appear to have missed their return date.
These technical issues leading to the wrongful issue of notices lead to an urgent update in June from the HMRC advising customers to ignore penalties which shows on their account for a late submission of their first return for periods ending March, April and May 2013, penalties for late filing of these returns were cancelled .
The issues appear to have persisted and the HMRC has now cancelled all other MGD penalties issues to date for the late filing of MGD, penalties for other infringements such as failing to register or making errors on a return, still stand.
The statement from the HMRC indicates that "for a short period the HMRC will not issue any new automated penalties". The period is not specified and is intended to allow these technical issues to be resolved, it does not affect the requirement for Operators to continue to lodge returns in accordance with the regulations.