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HMRC internal manual

Air Passenger Duty

HM Revenue & Customs
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Deregistration: Insolvent traders

Also refer to APD11400. A User Interest should be put onto the VAT electronic folder when an airline registers for APD.

If the CAT becomes aware of insolvency proceedings against an APD trader they should follow this procedure:

Step Action
1 - if the operator has not submitted and paid all APD returns up to the current date Contact the trader’s local VAT office immediately. The VAT office should be instructed to inhibit all VAT repayments. (VAT repayments due can be offset against APD liability in accordance with Rules 4.90 and 4.92 of The Insolvency Rules 1986).
2 Notify CCU immediately of the insolvency and the type of insolvency so that they can inhibit the further issue of returns.
3 Calculate the operator’s correct APD liability as soon as possible and notify to CCU.
4 Enter this liability plus any APD which may be outstanding from previous periods on a Proof of Debt form and submit to the liquidator. These forms can be obtained from the liquidator dealing with the insolvency. The liquidator will be able to inform you of the date of the creditor’s meeting; the form must normally be submitted before this meeting.
5 The CAT will liaise with the Debt Management Unit