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

A tax expert says that one new measure that could be announced in the Budget on October 30 could hit many people

Millions of Brits could face an increased HMRC tax, according to a tax expert. Andy Wood, a tax expert from Tax Natives, said the Government was "expected" to increase Air Passenger Duty in the upcoming Budget on October 30.

He said it would hit millions of travellers and potentially increase the price of holidays, particularly those to long-haul destinations. Air Passenger Duty (APD) is a tax levied by HMRC on passengers flying from a UK airport, with different rates based on the flight’s distance and travel class. Andy said the UK already imposed one of the highest APD rates in the world and the tax played a critical role in increasing the overall cost of flying.

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.

“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 also said that long-haul holidays were likely to be the hardest hit, as the higher rates apply to flights covering greater distances: “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.”

Andy added: “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.”

Holidaymakers are being encouraged by Andy to act quickly to secure current prices before any further increases are announced in the Autumn Budget. He said: “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.”