Please can someone help me get my head around this blasted MGD...
This is an example of a slip I am looking at which has been printed from the machine (where (L) = Left On Site and (B) = Banked):
Nett Take: £10.50 (L) MGD: £2.10 (B) Op Share (32%): £2.68 (L) Cust Share (34%): £2.86 (B) Cust Share (34%): £2.86 (L) VAT On Cust Share: £-0.57 (B) VAT On Cust Share: £0.57 (L) VAT On Rent: £-0.54 (B) VAT On Rent: £0.54 (L) Total: £3.85 (B) Total: £6.65
I understand that for the MGD return what we would pay over to HMRC is the £2.10 (that's the easy bit!) What I don't understand is whether I can also claim back the VAT which is shown as a £-0.54 and £-0.57, and also, if we can claim that back, why we would be claiming the VAT on our income from the machines??
Also if we can't claim any of the VAT mentioned now, does that actually mean for this particular machine we get £3.85 left on site but have to pay £2.10 of that as MGD so only actually make £1.75 profit from having a machine?
I hope this isn't really confusing to understand. I spoke to the people that own the machines and they told me i'd need to speak to HMRC and vice versa so getting nowhere! :(
(Partial answer!) - MGD and VAT should not apply to the same income. The key with MGD was that it would tax every situation which was VAT exempt. Hopefully, you should be able to determine which applies - the operator should do this. I would expect the machine owner to provide some explanation, as it is their machine, and presumably their employee empties the machine and provides the invoice!
