APD2300 – Registration: Administrative representatives

General policy

You can find general policy covering administrative representatives in Notice 550 Air Passenger Duty.

Reviewing the amount of security

You should review the amount of security on a regular basis and may increase or decrease the amount required. In doing so, you must take the following factors, in particular, into consideration:

1. the amount of APD which you consider is likely to become due in the relevant 12 month period;
   
   
2. any liability to duty that has actually been incurred in the relevant 12 month period;
   
   
3. any past failures by the aircraft operator to comply with our requirements or the equivalent revenue authorities of the state in which they are based. These include:
   
   

4. evidence that there is a link between the directors (including relatives of directors) or officers of the company and any other organisation failing to comply with our requirements or the requirements of the equivalent revenue authorities of the state in which the aircraft operator is based.
   
   

How must the aircraft operator provide security?

Unless the aircraft operator intends to operate a single flight or unless their anticipated APD liability is very small, they must provide security in the form of a written guarantee from a financial institution (usually a bank) which is acceptable to us. Please see APD13700 for an acceptable form of words for the guarantee. The CAT is able to confirm whether a guarantor is acceptable.

The aircraft operator, or their representative, must arrange for the guarantee, duly authorised by the guarantor, to be sent to the CAT within the time limits set out in Notice 550 Air Passenger Duty.

If however, the aircraft operator’s estimated APD liability for the 5 month period is less than £10,000 or they intend to operate only one flight within the next 5 months they may, instead of providing a guarantee, lodge with us either a sum of cash or a bankers draft equal to the value of their estimate.

The written guarantee or cash deposit/bankers draft must be accompanied by a statement from the aircraft operator that the amount of the guarantee is a true estimate of their liability and that they have exercised due care and diligence in making it.