Simplifying Taxes in the UK: Unified Tax for Online Gambling and System-Wide Modernisation
The UK plans to simplify taxation for online gambling: instead of three separate taxes (RGD, GBD, PBD), a single tax — the Remote Gambling Duty (RBGD) — will be introduced to cover the entire sector.
The tax rate is yet to be determined and will be set in a future budget. Consultations will run until 21 July 2025, and RBGD is expected to take effect from October 2027.
New Unified Tax for Online Gambling
Remote Gambling Duty will replace the existing three taxes: Remote Gaming Duty, General Betting Duty, and Pool Betting Duty.
This will simplify calculations for operators and reduce reporting requirements. The measure applies to all forms of online gambling — via the internet, television, radio, and telephone.
Main Directions of the Tax System Reform
In spring 2025, the UK government introduced a large package of measures aimed at simplifying and digitising tax and customs procedures.
The goal is to reduce administrative burden and provide businesses with greater certainty.
Key Changes and Simplifications
| Measure | Change Summary | Effective Date |
|---|---|---|
| Capital Goods Scheme | Computers excluded from asset list, land and construction threshold raised to £600,000 | 2025 |
| Spirit Drinks Verification Scheme | Flat fee of £250 per facility every 2 years | from 1 July 2025 |
| CEST Tool | Updated employment status determination tool | 30 April 2025 |
| National Insurance Contributions | Simplified process for transferring contributions from employer to employee | 1 May 2025 |
| Payrolling Benefits | Mandatory benefits reporting — postponed | from 6 April 2027 |
Digitisation and Reduction of Paperwork
- Simplification of electronic invoicing — business consultation launched
- Phasing out some paper letters for income tax
- Transition to digital notifications and electronic document flow
Simplification for Individuals
Changes will also affect citizens. The income threshold for mandatory Self Assessment filing is now £3,000, which will exempt around 300,000 people from filing.
Planned additionally:
- Update of pension forecast service
- Simplification of national insurance contribution refunds
Modernisation of International and Corporate Rules
Draft laws on transfer pricing, Diverted Profits Tax, and permanent establishment have been introduced. Also under discussion:
- Consultation on Landfill Tax reform
- Update of taxation for charitable goods donations
Changes in Customs Policy
The government is modernising customs processes, including pilot projects for digitising documents and expanding the simplified Authorisation by Declaration to 10 times per year.
Additionally:
- Updates on Temporary Admission
- Development of new rules for postal exports
- Improvements to the goods transit system
Conclusion
The merging of online gambling taxes into a single RBGD and the extensive reforms to the tax and customs systems are aimed at making life easier for businesses and individuals.
Reduced reporting, digitisation, new services, and clearer rules — all of this is expected to save time and resources.