On April 9, 2018, the UK Government launched a consultation on reform of compliance obligations for those liable to gaming duty.
The consultation considers whether the UK should move to three-month, six-month, or 12-month accounting periods, whether the UK should remove the requirement to make payments on account (advance payments); and whether taxpayers should be allowed to offset losses against future liabilities. HMRC's preferred option is the adoption of three-month accounting periods.
Stakeholders are being invited to provide feedback on the proposals, whether they will likely reduce administrative burdens, and any practical issues that may arise as a result of implementation.
Gaming duty is paid by casino operators on their gross gaming yield (GGY) from games, where gaming takes place on premises in the UK. Liability is calculated on a per-premises basis for each accounting period and has a banded progressive structure similar to income tax, with marginal tax rates ranging from 15 percent to 50 percent of each casino's GGY. Each casino's GGY is the amounts staked by customers minus winnings paid, plus any charges made in connection with the gaming.
Businesses liable to gaming duty are required to file two returns and make two payments in each six-month accounting period. After the first three months of the accounting period a return form GD94 is completed and submitted to HMRC along with a "payment on account" that is calculated against the GGY for those three months. At the end of the six-month accounting period, the gaming duty is calculated against the GGY for the whole period, with an adjustment for the payment on account that was made after three months. The balancing payment is submitted with return form GD95.