Notice

Excise Notice 147: Pool Betting Duty (pre 1 December 2014)

Published 20 August 2015

Foreword

Notice 147 (September 2010) provided general information related to Pool Betting Duty (PBD) before 1 December 2014 (also referred to throughout this revised version as ‘that date’). That notice also made a number of provisions which gave effect to the legal regime relating to PBD prior to that date. However there may be outstanding liabilities for the period prior to 1 December 2014 and requirements relating to what happened before that date. This revised notice 147 makes the necessary provisions which have the force of law for such outstanding liabilities.

1. Introduction

The legal provisions within this notice have the force of law in respect of liabilities before that date under:

• the Betting and Gaming Duties Act 1981, Schedule 1 Para 3 – (BGDA 1981)
• the Revenue Traders (Accounts and Records) Regulations 1992 (SI 1992/3150), Regulations 5,6 and 7 – (RTAR 1992)

Although these provisions are written in the present tense they should be read as referring only to the liabilities before 1 December 2014 and interpreted accordingly. They must not be read in relation to any dutiable pool bets which have been taken after 1 December 2014. They must only be read in respect of dutiable pool bets prior to that date.

For the new provisions, including record keeping provisions, which have the force of law relating to PBD after 1 December 2014 see notice PBD147a. This revised notice 147 does NOT relate to PBD after that date and must not be used in respect of any questions relating to PBD after that date.

2. Payment

The following direction has the force of law for liabilities pre 1 December 2014.

2.1 The law covering payment of Pool Betting Duty

Direction made under the Betting and Gaming Act 1981, Schedule 1 Paragraph 3

Pool Betting Duty must be paid to the Commissioners no later than the 15th day of the month following the end of the accounting period.

3. Records

The following directions have the force of law for liabilities pre 1 December 2014.

3.1 The law covering record keeping requirements

Excise Duty account

Regulation 5 and Schedule 2 of The Revenue Traders (Accounts and Records) Regulations 1992

This Regulation provides that a revenue trader must complete an Excise Duty Account at the time he completes a Pool Betting Duty return. It must contain:

1. The amount, before adjustment, of any duty payable by the revenue trader in each accounting period.
2. The amount of any adjustment in each accounting period.
3. The amount after any adjustment, of any duty payable by the revenue trader in each accounting period.
4. The amount, date and method of payment of any duty paid by the revenue trader.

Net pool betting receipts

Regulation 6 of The Revenue Traders (Accounts and Records) Regulations 1992

This Regulation provides that HM Revenue and Customs (HMRC) may specify in a notice which records a revenue trader must keep and preserve. Our specifications are set out below.

This account may be incorporated with the Excise Duty Account (see paragraph above) and must contain the following information for each accounting period:

• the gross amount of stake money, and the gross amount of expenses and profits attributable to your pool betting
• the total amount paid out in winnings
• the total net pool betting receipts

These terms are defined in the glossary.

Completion of records

Regulation 7 of The Revenue Traders (Accounts and Records) Regulations 1992

This Regulation provides that a revenue trader must complete all his records at the time of, or as soon as possible after the relevant event, or when the information is first known to him.

Storage of records

A revenue trader must keep the above records for the following periods:

• coupons, entry forms, tickets, etc. for 6 months
• details of winnings paid out, including winnings notified as payments to customers’ accounts for 6 months after the date when the winnings are paid out

Other records

• documents and accounts for 3 years

Note: promoters still have to keep records for dutiable pool bets taken before 1 December 2014 until that 6 month/3 year end date expires, even though there are new legal provisions in place in respect of record keeping for dutiable pool bets after that date. These new provisions, including record keeping provisions, can be found in notice PBD147a.

4. Penalties

The legal responsibility to have paid PBD on time and created records in respect of liabilities before 1 December 2014 continues after that date as does the legal responsibility to keep and produce those records for an appropriate period of time after that date. If you fail to meet any of these legal obligations you may still be liable to a penalty after that date for any such pre-1 December 2014 breaches.

Civil penalties may be applied to a range of provisions under section 9 of the Finance Act 1994. These include failure to render duty returns, failure to pay duty due, and failure to notify for pool betting duty. Excise Notice 209: civil penalties - fixed, geared and daily gives more information on this subject.

5. Review and appeals

As taxpayers you have the right to ask for a review, or appeal directly to an independent tax tribunal, if you do not agree with an assessment or a penalty decision made about your business. A review will be handled by an HMRC officer not previously involved in the matter. There is still the option to appeal to the tribunal after the review has finished, if you are not satisfied with the outcome of the review. Alternatively you can request an appeal from the outset by writing directly to the Tribunals Service.

There is further information about appeals and reviews, on the Tribunals Service website or by Telephone on 0845 223 8080, or by downloading a copy of factsheet HMRC1: HM Revenue and Customs decisions - what to do if you disagree.

6. Glossary

Term	Description
Accounting period	A 4 or 5 week period ending on the last Saturday in each calendar month.
Dutiable pool bets	Dutiable pool bets are made by way of pool betting with either a promoter or totalisator in the UK. Bets do not apply when: * made wholly in relation to horse racing or dog racing * through community benefit.
Net pool betting receipts	This is the balance remaining after adding together all stakes, expenses and profits, then deducting total winnings paid out in an accounting period.
Pool betting	Bets are made, other than at fixed odds and where the total winnings are shared with all other winners in the pool. The ratio of winnings paid out is determined by the amount of the bet originally made.
Pool Betting Duty	Duty charged at the rate of 15% on a promoter’s or totalisator operator’s net pool betting receipts in an accounting period.
Promoter	A person responsible for the management of any pool betting business and the calculation of the net pool betting receipts in an accounting period.
Stake money	All payments made on account of dutiable pool bets.
Winnings	The aggregate amount paid out as winnings on dutiable pool bets to all winners in an accounting period.

7. How we use your information

HMRC is a data controller under the Data Protection Act 1998. We hold information for the purposes specified in our notification to the Information Commissioner, including the assessment and collection of tax and duties, the payment of benefits and the prevention and detection of crime, and may use this information for any of them.

We may get information about you from others, or we may give information to them. If we do, it will only be as the law permits to:

• check the accuracy of information
• prevent or detect crime
• protect public funds

We may check information we receive about you with what is already in our records. This can include information provided by you, as well as by others, such as other government departments or agencies and overseas tax and customs authorities. We will not give information to anyone outside HMRC unless the law permits us to do so. For more information go to Data Protection Act.

8. Complaints

If you are unhappy with the way we have handled your affairs (because of delays or mistakes, for example) please tell the person or office you have been dealing with. If they are unable to sort things out, ask for your case to be referred to the complaints team. For more information about our complaints procedures, go to Complain to HM Revenue and Customs.