Brexit: what does it mean for you?

At the end of the 31^st January 2020, the UK officially left the EU with a trade deal in the bag. Almost five years after  the referendum, the question still remains; what does Brexit actually mean for you, and how will it affect your life?

 

Passports are changing colour

You may be aware that since leaving the European Union, the colour of our passports will change. But what does this mean for you? Going forward, UK citizens will now need a blue passport to symbolise our disconnection from the EU, but this doesn’t mean you have to apply for one straight away. As it stands, your existing burgundy passport is valid until it’s expiration, however, it must be less than 10 years old and have at least 6 months left on it if you want to travel to most countries in the EU. So, if you have any plans to travel this year (providing it’s safe to do so), check the start and expiration date of your passport to avoid complications.

Do you need to renew your passport? Find out how here.

 

Brexit may not have a huge impact on the property market

When the UK first decided to leave the EU back in 2016, there were fears that the economy could shrink, and housing prices would fall by roughly 30%. However, the reality has been quite different. Why? Most economic experts predict that the Coronavirus pandemic has affected the property market more than Brexit, the stamp duty holiday has increased sales by 7.6% in the past year. The question on everyone’s minds right now is whether this government incentive will be extended beyond March. If so, we may experience an even steeper rise, and narrowly escape a housing crisis. Ultimately, the future of this industry remains uncertain. The stamp duty holiday will eventually end and could deter people from buying afterwards – especially whilst mortgage rates remain high and mass job losses continue. But for now, it’s too difficult to call.

 

Travelling to the EU will change

For now, travel is banned across the EU as a result of the pandemic. But when this changes, there are several things you should be aware of.

In 2022, you’ll need a £6 visa-waiver for short stays and holidays – At some point during 2022 (the exact date is yet to be confirmed), UK Nationals will need a ‘visa-waiver’ when travelling to countries in the EU. Unlike a traditional visa, this will be valid for short holidays and won’t need to be renewed for 3 years.

There will be stricter border checks – As well as potentially using separate queues from EU Citizens at borders, Brits may be asked to show evidence of return tickets and show that they’ve enough money to manage during their stay.

You may need extra documents – If you plan on working, studying or staying in an EU country for longer than 90 days, you may need to provide extra documentation. This will depend on the reason(s) for your tip and whether the embassy of the country you’re visiting requires anything. However, this does not apply to Ireland.

There will be a restriction on what you can bring back – Up until now, there has been no limit on how many goods could be brought back from the EU without paying ‘custom duties’, i.e, tax. But since January this year, the rules have changed. Now, there is a £390 tax-free limit for most goods, excluding alcohol and cigarettes which carry their own separate limits. Plus, 20% VAT will be due on all imports.

To check your allowances, visit the Gov.uk website for more details.

 

The cost of food won’t rise

One of the most concerning talking points post Brexit was whether the price of food would rise and up until a trade deal was announced on Christmas Eve 2020, it was still a big possibility. Thankfully, consumers can rest easy knowing that tariffs will not be applied to food and goods traded between the EU and UK. However, be careful when shopping online – your rights have not changed when buying from EU sellers, but customs duties, VAT and handling fees may be applied.

 

Other things to note:

• The rules for flight delay compensation haven’t changed
• EHICs remain valid until their expiry date but after that, they’ll be replaced with GHICs. Learn more about it here.
• Mobile providers don’t have any plans to bring back roaming charges, but that’s not to say they won’t in the future.
• You’ll get the same protection when buying a package holiday from an EU company.
• Taking your pet to Europe is trickier than before – learn why here.
• You don’t need a permit to drive in the EU but you’ll need an international certificate of insurance if you plan on taking your own car. This can be done through your insurance company.
• If you’re an EU citizen, you’ll have to register with the EU Settlement Scheme if you want to stay.

 

If you have been affected by Brexit and are struggling to manage your finances, find out if a debt solution could help you.