Heathrow urges UK government to scrap quarantine rules before Christmas


Laura O'Callaghan
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London’s Heathrow Airport is leading calls for the UK government to roll back travel restrictions to pave the way for family reunions in time for Christmas.

Bosses want to see ministers alter the hotel quarantine system for passengers arriving from red list countries to give them the option of self-isolating at home.

CEO of Britain’s busiest airport, John Holland-Kaye, said the move would offer a much-needed boost to the aviation sector, increase consumer confidence and open up thousands of new jobs.

Despite the reopening of the US-UK travel corridor in November, Heathrow says the imposition of strict new red list rules due to Omicron have caused demand to plummet by 60 per cent compared to pre-pandemic levels.

The airport has been hit by a high level of cancellations by business travellers concerned about the prospect of being stranded overseas due to pre-departure testing.

The UK government said everyone coming in to England must show proof of a negative lateral flow or PCR test. The devolved administrations in Northern Ireland, Scotland and Wales make their own Covid-19 rules.

The UK government has introduced a rule that says travellers must show proof of a recent negative Covid-19 test upon entry. (Photo by Andy Buchanan / AFP)
The UK government has introduced a rule that says travellers must show proof of a recent negative Covid-19 test upon entry. (Photo by Andy Buchanan / AFP)

Heathrow said if the government drops restrictions as soon as it is safe to do so it will send a strong message to employers at the west London hub to start recruiting and training thousands of people ahead of the summer season.

“By allowing Brits to isolate at home, ministers can make sure they are reunited with their loved ones this Christmas,” said Mr Holland-Kaye.

“It would send a strong signal that restrictions on travel will be removed as soon as safely possible to give passengers the confidence to book for 2022, opening up thousands of new jobs for local people at Heathrow. Let’s reunite families for Christmas.”

Heathrow forecasts a slow start to 2022, finishing next year with around 45 million passengers – just over half of the airport’s pre-pandemic levels.

This aligns closely with the forecast published by the Civil Aviation Authority, the UK’s aviation regulator. IATA, the international trade body representing airlines, has also predicted global passenger numbers in 2022 will be about 60 per cent of 2019 levels.

Heathrow said it could not expect the sector to fully bounce back from the battering it took during the pandemic until all travel restrictions, including testing rules, are removed in countries that it serves.

It said consumers also needed to be given assurances from governments that new curbs would not be imposed to enable people to have the confidence to book trips with peace of mind.

On Thursday a High Court judge blocked a legal bid to challenge the government's mandatory quarantine policy.

Claimants had argued it was an infringement on their human rights to have to stay in a hotel room for 10 days after arriving from a red list nation.

But the judge concluded there is an “element of choice” for travellers wishing to go to countries on the red list.

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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Updated: December 11, 2021, 2:17 PM