Notice

Excise Notice 451: General Betting Duty (pre 1 December 2014)

Published 20 August 2015

Foreword

Notice 451 (April 2010) provided general information related to General Betting Duty (GBD) 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 GBD 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 451 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 paragraphs 6 (1) and (2) and 9 (2) – (BGDA 1981)
  • the Revenue Traders (Accounts and Records) Regulations 1992 (SI 1992/3150), Regulation 5 and Schedule 2 – (RTAR 1992)

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

For the new provisions, including record keeping provisions, which have the force of law relating to GBD after 1 December 2014 see notice GBD451a. This revised notice 451 does not relate to GBD after that date and must not be used in respect of any questions relating to GBD after that date.

2. Records

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

2.1 The law covering record keeping requirements

Directions to bookmakers made under the Betting and Gaming Duties Act 1981, Schedule 1, paragraph 6 (1)

Off-course bets

Vouchers, letters and other papers, telephone

(1) For off-course bets made with you by:

  • a bettor in person - you must keep a copy of the voucher (betting slips) you issue to that person
  • letter or another method involving the delivery or print out of paper bearing details of the bet - you must retain the letter or other paper
  • telephone, or any other means not covered above - you must record the particulars on a voucher unless you maintain records that the Commissioners are satisfied achieve the same effect

(2) You must mark clearly and indelibly all vouchers (betting slips), letters and other papers that you use to record off-course bets with the:

  • first unused number taken from a consecutive series and
  • date and time the bet was made
  • regardless of the system employed this information must be recorded at the time the bet is made, using mechanised means unless at the time the bet was made mechanised means were not available

Daily add list

(3) You must keep a clear and indelible daily add list of:

  • each amount of money, which falls due to you, for each class of off-course bet, made with or through you

Daily add list totals

(4) You must keep a clear and indelible record of daily add list totals of money due for each class of bet made with or through you:

  • in a bound book made up of consecutively numbered pages and
  • record this information in date order, by no later than noon on the day following the day on which the bets contained in the add list were made

Winning off-course bets

Daily add list

(5) For each class of bet, you must keep a clear and indelible daily add list for:

  • each amount of money paid out in respect of winning off-course bets - which must be capable of reconciliation with the add lists of money due for off-course bets made with or through you and
  • winnings paid to customer’s accounts - which must be capable of reconciliation with any associated business records you maintain including customer statements

(6) You must keep a clear and indelible record of daily add list totals of winnings paid out, including winnings notified as payments to customers’ accounts, for each class of bet made with you:

  • in a bound book made up of consecutively numbered pages and
  • record this information in date order, by no later than noon on the day following the day on which the bets contained on an add list were paid out or notified as payments to customers’ accounts

Alternative form of record keeping

(7) You may instead maintain records in another form and manner not covered under the terms of directions (1) to (6) above, (for example by electronic means) that the Commissioners are satisfied achieves the same effect. If you use a till you must retain all till rolls.

Storage of records and documents

(8) Vouchers (betting slips), letters, papers, and other media:

  • used to record winning off-course bets, must be stored in a readily accessible form and manner in daily batches for a period of 6 months after the date when the winnings were paid out, or notified as payments to customer’s accounts
  • all other vouchers (betting slips), letters papers and other media used to record off-course bets, must be stored in a readily accessible form and manner in daily batches for a period of 6 months after the date when the bets were made

(9) All other records, documents and accounts:

  • including trading and profit and loss accounts
  • balance sheets and
  • customer and bank statements

Which you use in the course of your business, or which you use for the purpose of completing duty returns, must be stored in a readily accessible form and manner for 3 years.

GBD account

(10) All off-course bookmakers must maintain an account to be known as the GBD account. This must consist of a summary:

  • for each duty accounting period
  • including information required to complete duty returns for each class of bets made

Directions made under Betting and Gaming Duties Act 1981, Schedule 1, paragraph 6(2)

Where you may keep your records

(11) You may keep any records, documents or accounts that you are required to keep under the terms of directions (1) to (10) above, at any of your places of business as a bookmaker in the UK, provided that they can be produced (in a readily comprehensible form) for inspection by HM Revenue and Customs (HMRC) at your principal place of business as a bookmaker.

Directions to bookmakers made under Betting and Gaming Duties Act 1981, Schedule 1, paragraph 9(2)

(12) Bets received from your agent:

  • you must keep and maintain a record of all bets received in any form, from any person acting as your agent, or any person whose authorisation as your agent stopped within the previous 2 months
  • the record must include all bets received by any of your business premises that the Commissioners allow
  • you must include all the information in this record under the terms of directions (1) to (11) above, as appropriate

2.2 Other record keeping requirements for bookmakers

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

Regulation 5 of the Revenue Traders (Accounts and Records) Regulations 1992

You must also keep additional records known as your ‘Excise Duty Account’ showing the amount of duty you are liable to pay within each accounting period.

Schedule 2 of the Revenue Traders (Accounts and Records) Regulations 1992

Particulars of the Excise Duty account

  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.

Note: one of the record keeping requirements above, for liabilities pre 1 December 2014 for GBD, is that bookmakers have to keep their duty records for a particular length of time:

  • 6 months from the date the bet was made, or the winnings paid out, in the case of vouchers, betting slips, letters, papers and other media
  • 3 years, in the case of all other records, documents and accounts used in the course of their GBD business or in order to complete their return

Bookmakers therefore still have to keep records for dutiable 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 bets after that date. These new provisions, including record keeping provisions, can be found in notice GBD451a.

3. Penalties

The legal responsibility to have 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 general betting duty. Notice 209 Civil penalties: fixed, geared and daily gives more information on this subject.

4. 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.

5. Glossary

Term Description
Accounting period A calendar month, (unless you have agreed for non-standard accounting periods).
Agent A person who has authority and consents to act on behalf of another person.
BGDA The Betting and Gaming Duties Act 1981.
Bet Although not defined in law, each party to the bet must stand to win or lose something dependent on the outcome of the issue in question.
Bettor Person making the bet.
Bookmaker Any person who receives or negotiates bets or conducts pool-betting operations (as agent, or principal, or occasionally, or regularly), by way of business, unless operating or employed in operating a totalisator. See section 12 of BGDA.
Duty Return Forms BD211, BD211A and BD211B are used to account for duty due in each accounting period.
General Betting Duty Excise Duty charged at 15% on bets made with a UK bookmaker
Off-course bets All bets other than on-course bets.

6. How we use your information

Find out how HMRC uses the information we hold about you.

7. 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.