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High street bookmakers have rarely been out the news of late, they have been left reeling from the Governments decision to slash FOBTs to a max bet of just £2. There maybe a silver lining on the horizon in the shape of VAT refunds.A tribunal favoured Betfred’s argument when the popular bookmaker took HMRC to court over VAT payments on FOBT winnings between 2005 and 2013.
Unfairly Taxed
Similar games on these terminals were already exempt from tax, Betfred argued; any winnings should also be exempt. FOBT’S were found to be strikingly similar to other games, therefore it would be a ‘Breach of the principal of fiscal neutrality if they were treated any different.’Managing director of Betfred, Mark Stebbings said, “ We welcome the decision regarding the historical tax treatment of Fixed Odds Betting terminals which pre-dates, the introduction of Machine Games Duty in February 2013.”“ It does not concern Betfred’s ongoing tax liabilities.”This is a momentous win for Betfred, and could also benefit other leading high street bookmakers.The final figure has not yet been agreed, but the popular bookmaker has stated it could be over £100M.It could be sometime before the rebate happens, with HMRC given chance to appeal against the decision.