Time is running out for bookmakers, casinos, amusement arcades, bingo halls, pubs, clubs and other venues operating gaming machines to register for Machine Games Duty (MGD).

MGD comes into effect on 1 February 2013. Under the new regime, anyone responsible for premises from which gaming machines are provided for play must register with HMRC by Friday 11 January 2013.

The new tax will be payable where customers pay to play a game on a machine in the hope of winning a cash prize which is greater than the cost to play. It will replace both Amusement Machine Licence Duty (AMLD) - an annual charge for making a gaming machine available for play - and standard-rate VAT on net takings.

Affected businesses who continue to operate from 1 February onwards without having completed the registration process could face a penalty of up to 100% of the tax due. Penalties may be issued even where there is no tax due.

While HMRC will make every effort to process late registrations, it is warning operators that it cannot guarantee that applications received after 11 January will be processed by 1 February. Registering by 11 January is the only way for a business to guarantee that it won't be hit with a penalty.

HMRC is also advising operators that the simplest, quickest and most secure way to register is via its MGD Online Registration Service, giving an immediate on-screen acknowledgement that HMRC has received the application.

Registration can be done online at HMRC

Businesses can also register for MGD using a paper application form, which can be downloaded from the HMRC website.

More details are available on the HMRC website