Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Air Passenger Duty

From
HM Revenue & Customs
Updated
, see all updates

Penalties/interest and debt management: Which penalties are generated locally?

Which penalties are generated locally?

The CAT must notify CCU if a trader is liable to the following penalties. You will need to complete form APD40 – see APD5550.

The APD system will not generate documents informing the trader of such penalties after input of the APD40. After completion of the APD40 you should:
 

  • send the top copy of the form to the trader;
  • send the bottom copy of the form to CCU in order for the trader’s account to be updated; and
  • a photocopy of the form should be retained in the trader’s folder.

If the penalty is a non automatic fixed daily penalty for failure to keep or produce records, the CAT must notify CCU each month if the penalties are to continue.

  1. Failure to register
     

The trader must register within 7 days of a chargeable flight taking place. Any failure to do so may result in the issue of a penalty, which is:

5% of the relevant duty* or £250, whichever is greater.

  • The relevant duty means the outstanding duty liability for the period from the date on which the first chargeable flight was operated to the date we received notification of the liability to be registered. The trader will also be required to pay the relevant duty.

    1. Failure to appoint a fiscal representative
       

If an aircraft operator does not have a business establishment in the UK or if he is an individual, a usual place of residence in the UK, he is required to appoint a fiscal representative (see Notice 550 Air Passenger Duty for further details on fiscal representatives).

The aircraft operator must appoint a fiscal representative witin 7 days of the operationof a chargeable flight.

The aircraft operator must appoint a replacement fiscal representative within 7 days of the day his representative ceases to act for him.

If the aircraft operator moves abroad a fiscal representative must be appointed within 7days of the move taking place.

Failure to do so will render the aircraft operator liable to a penalty of £250.

  1. Failure by the fiscal representative to notify us of his appointment or of his cessation to act
     

The fiscal representative must notify us within 7 days of their appointment as a fiscal representative or within 7 days of ceasing to act as a fiscal representative.

Failure to do so will render the fiscal representative liable to a penalty of £250.

  1. Failure to keep accounts and records
     

The trader must keep accounts and records in respect of APD, as prescribed in the Aircraft Operators (Accounts and Records) Regulations 1994 – see Notice 550 Air Passenger Duty for details of records to be kept.

Failure to keep such accounts or present them to the us will render the trader liable to apenalty of £250. In addition the trader will also be liable to a daily penalty of £20 for each subsequent day that they fail to do so.

  1. Failure to provide security
     

We may require a trader to provide security against the payment of APD.

Failure to provide such security will render the trader liable to a penalty of £250.

  1. Breach of a walking possession
     

If the aircraft operator breaches a walking possession agreement they will be liable to a penalty of 50% of the unpaid duty or penalty which gives rise to the distraint.
 

  1. Breach of regulations
     

There are 2 penalties which attract a penalty of £250 for a breach of regulations:

  • failure to notify a change of registration details according to The Air Passenger Duty Regulations 1994 – see APD2500; or
  • a breach of the unjust enrichment regulations according to The Aircraft Operators (Accounts and Records) 1994, as amended – see APD10700.