Brexit May Spoil Your Next Holiday

August 8, 2018 Taxation in UK

Travel Company Taxes After BrexitLONDON – If the UK follows through with Brexit, it may spoil people’s holiday plans.

In a press release issued earlier this week, Seasonal Businesses in Travel (SBIT), a UK-based travel industry advocacy group, claimed that the cost of holidays will increase following Brexit.

The cost increases were attributed to the fact that following an exit, UK companies with staff overseas will no longer be able to use UK staff during peak seasons.

The need to employ EY staff will mean that employers will need to pay local employment taxes, which are in many cases more onerous than their UK equivalents.

SBIT claims that following an exit, the costs felt by holiday companies will rise by as much as 58 per cent.

In addition to the increasing costs, the companies will reduce the number of UK workers that they have, leading to job losses of as high as 25 000.

Further, SBIT claims that the loss of jobs will have a heavy impact on the job and training opportunities among British youth, and will also have a negative impact on Britons who are travelling overseas.

The information in the press release was based on the results of a survey of 130 companies involved in British holidays to destinations within the EU.