Air Passenger Duty (APD)
Ford Aviation Services provides comprehensive Administrative and Fiscal Representation services for airlines around the world.
What is Air Passenger Duty APD?
APD is a tax that was introduced in 1994 that applies to passengers on board all flights departing from UK airports - this includes privately chartered flights as well as scheduled operations.
The amount of APD payable per passenger is dependant on several factors, including the class of travel for individual passengers and the overall length of the flight. However, APD calculations are not always straightforward - there are exemptions for specific departure points (including certain long-haul flights from Northern Ireland and all flights from the Scottish Highlands).
It is the responsibility of the operator to ensure APD is paid to satisfy the UK HMRC. Failure to pay in the allotted time can result in fines, penalties, and interest imposed. Therefore, for airlines with flights departing from the UK, it’s vital that they work with an approved and trusted APD representative.
How can we help?
Ford Aviation Services acts as an official administrative or fiscal representative on behalf of airline clients, ensuring that the correct APD is paid on time and submitted correctly.
If an overseas operator performs more than 12 flights annually or has APD liability of over £5,000 per year, UK HMRC will require the operator to appoint an APD representative.
Ford Aviation Services provides both administrative and fiscal representation solutions. We can support with late, backdated and overdue liabilities. Our process removes any possibilities for over or underpayment and alleviates a significant workload from operator clients.
There are two types of representative:
An administrative representative takes responsibility for all APD paperwork and payment submissions. When appointing an administrative representative, the operator will be liable to pay a deposit equivalent to five months’ average APD liabilities - this is payable directly to HMRC.
As with an administrative representative, a fiscal representative is responsible for all paperwork and payment submissions. However, a fiscal representative is also jointly liable for the correct payment of APD liabilities UK HMRC removes the requirement for five month’s deposit in place of a smaller deposit payable to the fiscal representative.
Occasional Operator Scheme
In addition to representations, we also advise clients on best practices regarding APD liabilities. Some operators are eligible for the Occasional Operator Scheme, enabling APD returns to be paid on an ad-hoc basis. Where eligible, we can support airlines with a simplified payment process, alleviating the requirement of costly deposits and complicated procedures.