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HMRC internal manual

Air Passenger Duty

HM Revenue & Customs
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Assessments and voluntary disclosures: What if an aircraft operator discovers errors in records?

General policy

You can find the general policy about errors in Notice 550 Air Passenger Duty. This gives guidance to aircraft operators on the 3 methods for correcting errors found on an APD return already submitted.

All underdeclarations notified to us using Method 2 are liable to interest. This is calculated automatically on input of the APD641 (see APD7240 for notes on completion). The error should be allocated to the correct period on the form, that is the period when the APD should have been paid, in order for the interest to be calculated accurately.

On completion of the APD641 follow the procedure outlined in steps 7 - 9 of APD7230

Adjustments made by the trader which should have been adjusted by Method 2

If during an audit visit you identify an adjustment in the APD account which should have been declared using Method 2, you should make an assessment to correct the amount of duty in both accounting periods and to charge the relevant amount of interest between those periods.


In August 2006 a trader finds an error in his APD account for the period 05/06 he adjusts the error in his APD return for the period 08/06. The error was for APD underdeclared by £4565.
If you then visit the trader in December 2007, you should complete the APD641 with the following information:

05/06 £4565.00 £NIL
08/06 £NIL £4565.00

When can Method 2 be used for a net overdeclaration

If a trader has deregistered, already submitted a final APD return and subsequently discovers that they have overpaid APD, the adjustment can be made by Method 2. (See APD3100 for the procedure to follow).