'New HMRC charge' warning as millions told 'act quickly'

Millions of Brits could be hit with a higher HMRC tax bill, an expert has warned. With the set for October 30, Andy Wood from . said it was "expected" that Air Passenger Duty will see a hike, impacting countless travellers and potentially bumping up holiday costs, especially for those jetting off to far-flung places.

APD is a charge by HMRC on flyers departing from UK airports, varying according to distance and class of travel. Andy highlighted that Britain already charges one of the steepest APD rates globally, contributing heavily to the soaring expense of air travel.

Andy said: "APD was already increased earlier this year, but with the Chancellor expected to target this tax again, the financial burden on travellers is likely to grow significantly. In April, we saw economy class domestic flight APD rise by 50p, short-haul overseas flights increased by £2, and long-haul flights of up to 5,500 miles saw an 11% surge, from £194 to £216.

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"Any additional increase in APD will directly affect flight prices, making holidays more expensive for UK travellers. Even a seemingly small increase of a few pounds can have a large impact, particularly for families booking multiple tickets or those opting for long-haul destinations. When you multiply the increase by several passengers, the extra cost becomes significant."

Andy has warned that long-distance holidaymakers could be in for a shock as higher taxes are likely to affect flights to far-off destinations the most: "The further the destination, the larger the financial impact. Long-haul travellers could see a substantial rise in their holiday costs if the government pushes ahead with these tax hikes."

Furthermore, Andy highlighted the poor timing of the potential hike, adding: "The timing of this potential increase is particularly challenging for many. We are in the midst of a cost-of-living crisis, and further increases to APD would add to the financial strain on families looking to enjoy a break abroad. While the government has pledged not to raise major taxes like income tax or VAT, smaller taxes such as APD could become the focus, placing an additional burden on consumers."

Andy also urged holidaymakers to book trips now to avoid being hit by future price rises stemming from tax increases laid out in the upcoming Autumn Budget. He advised: "For those planning holidays in 2025 or beyond, it's advisable to lock in prices now, as flight costs are almost certain to rise if APD is targeted again. We can only hope that the Chancellor reconsiders this move and takes into account the challenges that British holidaymakers are already facing."