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
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.
Example
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:
PERIOD APD DUE TO HMRC APD DUE FROM HMRC 05/06 £4565.00 £NIL 08/06 £NIL £4565.00
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).
