Money Troubles

MoneySavingExpert, which was founded by Martin Lewis, shared a tip for plane passengers

Some customers could be owed back hundreds after purchasing plane tickets, according to MoneySavingExpert (MSE). The consumer website, founded by journalist and TV personality Martin Lewis, regularly shares advice to help Brits.

In advice for travellers, the money experts pointed out that passengers who book non-refundable plane tickets but don’t end up using them can still request a refund for some of their money. While the refund won’t cover the entire cost of the tickets, they can get the Air Passenger Duty refunded.

In a Facebook post, MSE said: “Air Passenger Duty is a tax only paid by the airline to HMRC if you fly. If you don’t fly, whether you cancelled a non-refundable ticket or you missed your flight, you can request a refund from £8 to £253 per person.” The post also included a real-life success story from MSE Clare.

Clare revealed that her in-laws received a refund of £92 each after realising they needed to change their return flight home after visiting the UK from Australia. The family members had assumed they wouldn’t get any money back from their non-refundable tickets after their plans changed, but a “quick email” to their airline confirmed the good news. Clare said it was “a small consolation, but better than nothing.”

In the comments under the post, MSE added: “There’s no deadline for how far back you can claim – though some airlines impose their own (and a few charge an admin fee).” More information is available on the MSE website.

It said: “When you book a flight departing the UK, your ticket price will include various fees, such as airport tax. However, this isn’t collected by HM Revenue and Customs from the airline until after you actually fly. If you don’t fly – even by choice – you shouldn’t have to pay the tax.”

If you’re looking to make a claim, airlines publish information for passengers explaining exactly how to get it. Skyscanner explains: “The procedures for claiming an airport tax refund vary from airline to airline.

“Some will refund it automatically, whereas others require you to fill out a form. It’s worth noting that some carriers will charge an admin fee for the refund application, and with budget airlines, that fee can often surmount the amount you’ll get back.

“Each airline should publish details of how to claim back APD tax on its own website. If you cannot find this, call the airline and request details.”

Skyscanner added: “Some airlines have commercial agreements with various airports and may not always pay airport taxes. If you didn’t initially pay them, you wouldn’t be eligible for a refund.”

He said choosing the wrong option could automatically add 10 per cent to what you should be paying

A travel expert has warned Brits going away that they are going to be ‘ripped off’ unless they make the right decision when paying for things on holiday. Simon Calder, who is a travel expert at the Telegraph, said it was essential that people going away paid for things in the local currency rather than pounds if they were using their credit card.

He said choosing the wrong option could automatically add 10 per cent to what you should be paying. It is something which catches out many travellers, with people unsure of which option to choose when given the choice between paying in pounds or the local currency.

Mr Calder explained why you should choose pounds, and why it can cost you if you choose the wrong option. He said: “Just at the start of the summer rush, I need to warn people about dynamic currency conversion.

“You’re in a foreign country, you’ve got your credit card, you come to pay, the shop assistant, the waiter says, ‘Okay, here’s the card terminal and look, do you want to pay in Euros or in good old British pounds?’

“And you might be tempted for thinking, ‘Well, I’ll pay in Sterling of course, then I’ll know how much it costs’. The one thing you will know is that you are going to be ripped off to the tune of typically 10 per cent.

“So, on a £20 lunch, you pay an extra £2, which you will never get back. Leave it for the waiter instead. So, just remember, paying by credit card, always pay in local currency.”

Withdrawing money abroad

The dynamic currency conversion (DCC) that Mr Calder is warning people about is also a topic money-saving expert Martin Lewis has discussed. However, he used a similar example at ATMs, urging people to use the local currency when abroad.

He said that when an ATM or card terminal enquires whether you wish to pay in pounds or euros, it is essentially asking you who should perform the currency conversion.

“If it’s euros, do you want your card company to do the conversion? If it’s pounds, we will do the conversion for you and then charge your card,” Martin said.

According to consumer group Which?, DCC permits foreign retailers and ATM operators to convert a transaction into pounds at the point of sale, yet the exchange rates on offer are frequently far worse than those provided by banks and card issuers.

Mr Lewis even warned that ATMs abroad often try to convince the individual to use pounds due to the unfavourable exchange rate and even added withdrawal fees.

“I want euros, please. Are you sure? We won’t do the conversion. Are you absolutely sure? Yes, I want euros,” he said. “The ATM… they are desperate to persuade you to let them do the conversion because they make a lot of money from it.”