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HMRC internal manual

Air Passenger Duty

HM Revenue & Customs
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Auditing APD traders: Introduction

The aim of the APD system is to control, collect and account for APD, economically, efficiently and effectively. The control objectives are to ensure that:

  • statutory and departmental requirements are complied with;
  • all traders liable to be registered are brought into the system and an accurate, complete and timely register is maintained;
  • the approach to the control of traders follows departmental principles: risk assessment, resource allocation and system-based control;
  • the burdens on the trade are minimised;
  • full and accurate records are maintained;
  • management information meets policy and operational needs; and
  • training is provided for departmental staff and guidance to staff and trade is accurate, adequate and timely.

Control arrangements for APD are systems audit based. Airlines are required to maintain records as outlined in the Aircraft Operators (Accounts and Records) Regulations 1994.

The following references contain information/aide memoirs which may be of use to you when auditing APD traders:

  • General information on records and accounts – see Notice 550 Air Passenger Duty
  • Potential risks associated with Air Passenger Duty – see APD6600 and X-99 Assurance Guidance - Air Passenger Duty
  • Educational visits – see APD6400
  • Internal control Questionnaire for APD – see APD6600
  • Glossary of airline and other terms - see APD15000