From 4.00am GMT on Friday, UK travel rules were further loosened in a move sure to please travel chiefs who have been clamouring for the abolition of all Covid restrictions on fully vaccinated travellers.
Even before the latest unwinding, demand for travel bounced back in January after the removal of testing requirements bar taking a lateral flow test within 48 hours of entering the UK.
Figures from digital travel agency Skyscanner show bookings for economy return travel from the UK this summer increased by 394 per cent in January 2022 compared with the previous month.
They also show bookings for 2022 to Dubai from the UK made in January were up 49 per cent from the same month in 2020.
The travel rules unwinding has also been reflected in the numbers of people coming to the UK for a summer holiday. Britain was the most popular summer booking in January for travellers from the UAE, Skyscanner said.
Top five European destinations for UAE travellers this summer
Bar the emergence of a new more deadly Covid variant, the new most light-touch UK travel rules are likely to see the travel industry's renaissance continue apace.
What are the new UK travel restrictions?
Fully vaccinated travellers
Fully vaccinated travellers will no longer need to take any form of Covid test before or after arrival in the UK.
As was already the case, there is no need to quarantine under any circumstances. The only requirement is the need to fill in a passenger locator form before travel to the country.
To count as fully vaccinated, travellers must have proof of full vaccination with an approved vaccine. The final dose must have been taken no later than 14 days before arrival in the UK.
Non fully vaccinated travellers
For those who don't qualify as fully vaccinated, there are three obstacles to overcome.
Proof of a negative Covid test must be shown. This test must have been taken in the two days before travel to the UK.
Second is the requirement to book and pay for a Covid PCR test to be taken upon arrival in the country.
Third is the requirement to fill in a passenger locator form.
There is no need for unvaccinated travellers to quarantine unless the result of their PCR test is positive.
Why are UK travel rules changing?
Beyond providing further travel stimuli to boost the Covid-struck industry, the relaxation of the UK's travel rules is part of the government's determination to transition from a pandemic to an endemic mindset, where Covid is seen as one of many respiratory illnesses in circulation rather than a menacing separate entity.
To this effect, all domestic Covid rules in England are expected to be dropped by the end of February, a month before the government had planned to make the move.
“It is my intention to return on the first day after the half-term recess to present our strategy for living with Covid,” UK Prime Minister Boris Johnson told parliament when announcing the change of plan.
“Provided the current encouraging trends in the data continue, it is my expectation that we will be able to end the last domestic restrictions, including the legal requirement to self-isolate if you test positive, a full month early.”
Top 10 summer countries 2022*
*Top countries for UK travellers for economy return travel booked via Skyscanner in January 2022 for travel in summer 2022 (June, July and August 2022)
BULKWHIZ PROFILE
Date started: February 2017
Founders: Amira Rashad (CEO), Yusuf Saber (CTO), Mahmoud Sayedahmed (adviser), Reda Bouraoui (adviser)
Based: Dubai, UAE
Sector: E-commerce
Size: 50 employees
Funding: approximately $6m
Investors: Beco Capital, Enabling Future and Wain in the UAE; China's MSA Capital; 500 Startups; Faith Capital and Savour Ventures in Kuwait
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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The view from The National
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
UAE tour of the Netherlands
UAE squad: Rohan Mustafa (captain), Shaiman Anwar, Ghulam Shabber, Mohammed Qasim, Rameez Shahzad, Mohammed Usman, Adnan Mufti, Chirag Suri, Ahmed Raza, Imran Haider, Mohammed Naveed, Amjad Javed, Zahoor Khan, Qadeer Ahmed
Fixtures:
Monday, 1st 50-over match
Wednesday, 2nd 50-over match
Thursday, 3rd 50-over match
RESULT
Manchester United 2 Tottenham Hotspur 1
Man United: Sanchez (24' ), Herrera (62')
Spurs: Alli (11')