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HMRC internal manual

Air Passenger Duty

HM Revenue & Customs
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Penalties/interest and debt management: Which penalties are generated by CCU?

Types of penalty

The following penalties are generated by CCU. You should refer to the procedure in APD5200 if these penalties are to be inhibited or a central assessment is to be issued.

  1. Failure to render a return

If a return is not submitted by the due date, the duty due will be assessed (APD7500).

The law also allows for the issue of a fixed penalty (£250) for failure to render a return.

At present these penalties will not be generated by the CCU system. However, if you feel that a fixed penalty for failing to render a return is appropriate you should contact the CAT to discuss further (for instance if a direct debit trader consistently submits a late return).

  1. Failure to pay duty

If the trader fails to pay the duty by the due date, they are liable to a penalty of 5% of the duty due or £250, whichever is the greater. The trader will also be liable to a daily penalty of £20 for every day after the due date that the duty is not paid.

The duty is the unpaid portion of either the return or a central assessment whichever is in existence.

See APD5200 for information on inhibiting daily penalties.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Reductions or withdrawals of penalties

Should a failure to pay penalty or warning letter need to be withdrawn/reduced due to either a Departmental review/appeal or a Departmental error, you should complete an APD40 - see APD5550 for guidance on completion.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)