being bounced between holiday insurer and travel agent over APD fee

T9F

Hello, I need help, I had to cancel my package holiday earlier this year 2026, due to illness. Due to the time frame we got half a refund for myself & my Dad who were supposed to travel
together. I was granted my claim by the insurance company and received a payout, though they deducted an £90 APD fee, (air passenger duty) the claim was for myself, as the travel agent refunded 50% as per their policy, and time frame I cancelled it within, the other half for me was refunded in full apart from the policy excess, and £2.50 ATOL fee and this APD fee of £90.

I found out some information that this is a tax that the government collect from the
airline after you fly, until then it is said that you are charged this fee in your booking total confirmation. the only internet information I can find out is,that the tour operator/travel agent take this tax at booking, they then pass it to the airline who hold onto it, until you
fly, in which only when you fly is that money passed onto HMRC by the
airline. I am not expert in laws, i have not had this information from anybody legally trained in these kind of laws as that advice costs to much money.
But most sources on the internet say the same thing.So if you don't fly you can ask to claim that back from the tour operator or airline. So i went to do this, only to receive a strange response back from them as follows.

"Because your airline tickets were never issued, no APD was ever charged or paid to the airline. This means the insurance shouldnot have deducted £90 per person for APD, as it was never a real cost.Here is the supplier’s legal clarification:

“The airline tickets were never issued on this booking, so the customers
didn’t pay the airline for the APD tax. The cancellation amount of
£ is correct for the 50% charge, and the refund issued is
correct. We would not apply for any refund from the
airline as the tickets were not issued and no payment was made to
them.”

I would recommend going back to your insurer with this information and asking them to refund the £90 per person they deducted".

I enclose this response as a screen shot, I feel this is wrong as the APD fee is a legal tax that airlines have to pass to the HMRC, in which I feel sure, they would of requested from the travel agent/tour operator, otherwise it would surely be illegal if the travel agent are holding
onto that money, as they claim they never passed that cost onto the airline at time of booking or when holiday is fully paid for.

Something doesn't feel right here and I’m being bounced back between insurance company to travel agent.  The insurance won't pay the fee because they say it isn't a unrecoverable loss, and can be claimed back through your travel agent/tour operator. But yet if there is any truth to what the travel agent has told me then where did the insurance company get the
information that I was charged and paid for this APD fee?

Help would be appreciated where i stand,as I feel this is going to get quite nasty.kind regards

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Woodstok2000

Who did you book with and What Was the total cost of your holiday? How much did the insurer pay you? Does any of the documentation from the travel agent mention APD, e.g. an invoice?

T9F

https://forums.moneysavingexpert.com/discussion/comment/82024892#Comment_82024892

hello i booked with an independent travel agent up town called holiday creations, it gets complicated as their tour operator is gold medal, but yet also the company not just travel was mentioned. I'm not going to reveal the total cost of the holiday, that is private info. if you read above i got half refunded by the travel agent, the claim for the rest of the money was for myself as i was the one who feel ill. the only invoice i have is a booking summary, showing the total price paid ONLY! it does not show a breakdown of fees. I feel they are not being truthful as this APD is a very real legal government tax, that is usually charged at time of booking and baked into the whole package holiday price, though my summary does no show a breakdown. I have asked the airline to find out if any apd was passed onto them before I flew, no response as yet, not even sure they will respond or help as I booked through a travel agent, and i have to go through the travel agent, as it was a not booked direct a s a flight only through the airline virgin.

As the company have admitted they never made a payment to them of this APD, it means the travel agent must still have it, as it’s a government tax, if you didn’t fly it doesn’t belong to the airline, or the travel agent, it belongs to you, so I’ve read from asking google etc.

i have a feeling now they know I’m onto them, they might refuse me a full invoice breakdown, or get awkward about it, but have asked my travel agent and also this gold medal supplier for a breakdown of any other taxes/fee's included and what price each fee was per person.

I have a feeling I know what's coming from the insurance company with that information given to me by the travel agent, which i passed to them, but we will see. I have a feeling i'm going to end up going to the ombudsman to sort this mess out.

Westin

As this was a package holiday, you cannot get a breakdown invoice of all the component costs. The travel organiser does not need to separate these elements for you.

There is no travel ombudsman.

It is feasible that an airline e-ticket would not be issued if your holiday was some way in the future.

The travel organiser has given you an explanation and told you to reapproach your travel insurer. Have you done that?

Woodstok2000

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The insurance company are correct that APD is recoverable, so they definitely aren't liable. Companies will usually only pay back APD after the date of the flight, so you may need to wait and then make the claim. They can also apply an admin fee which may wipe out any refund.

T9F

https://forums.moneysavingexpert.com/discussion/comment/82026031#Comment_82026031

the holiday was supposed to be in April so it has gone already. no reply from the insurance company and no rpely from the travel agent as yet on getting an itemised invoice.

T9F

hello i have contacted the insurance company but reply as yet, there is an ombudsman for financial and holiday related things, I have found it if needed, i'ts also mentioned in the back of the issuance policy booklet I got where to write to if unhappy.

First i have to just wait for responses, somebody isn't being truthful with me, especially as per the amount of information form the internet and mse I have found, saying the same thing as you. but the travel agent saying it isn't a real cost, sounds false, as the cost of this APD is passed to the airline, who aren’t going to pay this off their own backs or profits, they will pass it onto the customer to pay at time of booking or final payment. so the travel agent’s response are saying they didn't pass it to the airline, then they must still have that tax. being charged admin fee on a tax is ridiculous.

Also the insurance company did not specifically mention what other fee's aren’t recoverable in a claim, they just said other fee's not included, so will be pulling them up on that. I didn't even know what this APD fee was until i got my claim settled and paid out hence why i went researching and going to my travel agent as most sources said you get it refunded by the travel agent. In once sense the travel agent i think are trying to say, the insurance company must prove where this APd tax is on the booking summary invoice, so where did the insurance get their information there was this other fee applied, is also a valid question. and thrusting it back on them, I know what will happen most likely the insurance will thrust it back onto the travel agent. i can see it coming.

i shall be making a complaint to my local mp on this, more people should do this, I mean with a lot of things digital now, what exactly is costing to transfer money to an account. Say if i transfer £10 to my mum's bank account, she's not charged a huge fee to receive money form me, it's free and takes up to 2 hours to be viewable on her bank statement.

luci

https://forums.moneysavingexpert.com/discussion/comment/82036473#Comment_82036473

This has nothing to do with your insurance company.

The airline is liable for any refund of APD. When they are asked to refund it, they can calculate it without an itemised holiday confirmation. This can only be done after what would have been the return date of travel. They would pass this onto the travel agent to then pass onto you.

Your travel agent is responsible for requesting this from the airline, as they made the booking with the airline / travel provider.

I would be firm, but polite, and tell your travel agent that you have taken advice (you don’t need to say from where!) and that it is up to them as an agent working on your behalf, to request the APD from the whoever they booked the travel with.

eskbanker

A few observations:

i booked with an independent travel agent up town called holiday creations

If this is Holiday Creations Ltd then perhaps worth being aware that they've applied to be struck off:

https://find-and-update.company-information.service.gov.uk/company/15771765

As the company have admitted they never made a payment to them of this APD, it means the travel agent must still have it, as it’s a government tax, if you didn’t fly it doesn’t belong to the airline, or the travel agent, it belongs to you, so I’ve read from asking google etc.

Sort of - the MSE guide explains that airlines aren't actually legally obliged to refund this, although most do:

https://www.moneysavingexpert.com/travel/missed-or-cancelled-a-flight-claim-air-passenger-duty-refund/

there is an ombudsman for financial and holiday related things, I have found it if needed, i'ts also mentioned in the back of the issuance policy booklet I got where to write to if unhappy

There is indeed the Financial Ombudsman Service, but worth noting that this offers arbitration about regulated activities carried out by regulated financial businesses, rather than being some all-encompassing service for "holiday related things", so if your insurance company fails to act in accordance with its terms or regulations then you may have recourse via FOS, but they won't intervene on anything the travel agent does or doesn't do.

In once sense the travel agent i think are trying to say, the insurance company must prove where this APd tax is on the booking summary invoice, so where did the insurance get their information there was this other fee applied, is also a valid question. and thrusting it back on them

The issue of whether APD is shown as a separate element on itemised invoices is largely a red herring - it is a fixed tariff charge based on distance and class of travel, and is automatically included in flight prices. £90 is the rate applicable to band B journeys before April 2026:

https://www.gov.uk/guidance/rates-and-allowances-for-air-passenger-duty-historic-rates

i shall be making a complaint to my local mp on this, more people should do this, I mean with a lot of things digital now, what exactly is costing to transfer money to an account. Say if i transfer £10 to my mum's bank account, she's not charged a huge fee to receive money form me, it's free and takes up to 2 hours to be viewable on her bank statement

With all due respect, the cost and timescale of bank transfers is irrelevant to the matter at hand, so best to focus on the core issue of which party, if any, is legally or contractually responsible for reimbursing the APD…

Humphreyshalfmoon

We seem to be going around in circles here. If no airline ticket was ever issued, and that appears to be the case, then the airline hasn't received a penny as they are paid after the ticket is issued.. If you have that in writing, then the insurer should refund the full 50% outstanding with no deductions. You should advise them that you will have no alternative but to contact the Financial Services Ombudsman but you need to be aware you may be waiting a long time for a response. The good news is the insurer is charged every time an application is made, so for the relatively small amount in dispute, it may pay them to pay you avoid any further costs!

eskbanker

You should advise them that you will have no alternative but to contact the Financial Services Ombudsman but you need to be aware you may be waiting a long time for a response

Especially when it's a prerequisite to go through the financial institution's complaints process (up to eight weeks) prior to escalation to FOS.