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Air passenger duty haul

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HMRC’s Large Business Service has collected £600m in ‘unpaid air passenger duty’ from airlines and tour operators through its compliance activity, according UHY Hacker Young.

Tax Partner Roy Maugham said: ‘This is a very significant amount of extra tax – particularly when you consider that the total liability for APD was estimated to be £1.9bn.

‘Airlines and tour operators have really been squeezed during the recession. Their costs, particularly fuel, have risen considerably, and the relentless increases in APD have significantly impacted demand for air tickets. The rules are complicated, so it’s easy to see how issues over compliance can arise.’

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