Until recently, the UK seemed to be back on track. Economic output was on the rebound and, with Covid-19 restrictions lifted, people were out splashing their cash. However, reports of rising energy prices, tax hikes and supply chain issues have dented confidence. So is the UK headed for a recession next year?

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What’s happening with the economy?

It looked like the UK was on track to make a full economic recovery. House prices were booming and things were opening back up again. Stats from the ONS showed that the economy grew by 0.4% in August. The summer of the staycation meant restaurants, hotels and campsites experienced a much-needed boost.

However, right now, the economy is still 0.8% smaller than it was before the pandemic.

In the past few weeks, it’s been hard to avoid news that inflation could exceed 4% by the end of the year. With that and supply chain issues putting a dent in our Christmas plans, it’s understandable that confidence is low.

The biggest game-changer could be the Bank of England increasing interest rates. The bank has indicated that it needs to move away from the ultra-low rate of 0.1% sooner rather than later in order to tackle inflation. But could this push the UK into a recession?

Are we looking at a recession in 2022?

A recession is when the economy records two consecutive quarters of negative growth. Right now, experts are forecasting growth of 0.9% in the first quarter and 0.7% in the second quarter of 2022. So if this is the case, the UK will avoid a recession.

However, the pressure of inflation and high energy prices means that some economists are predicting there could still be a slight chance. And when I say slight, I mean only a 10% chance.

Whatever happens, the start of 2022 is likely to be a pinch point. With Christmas coming up, issues are expected due to supply chain problems, which may dent consumer confidence and bleed into the start of the year.

Then there is the energy cap coming in April, plus rapidly rising prices and increased taxes. All of this means that we are more likely to tighten our belts than go on an extended post-pandemic spending spree.

Finally, higher interest rates could also finally take the wind out of the housing market’s sails. This could also have a dampening effect on the economy.

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Can you recession-proof your finances?

You may not be able to avoid the impact of a recession entirely, but there are ways to strengthen your personal finances.

• Act early: If you are concerned about the economy taking a turn for the worse, then the earlier you make changes, the stronger your position will be. This includes looking at your budget and finding ways to save money where possible.
• Get in control of your debt: If you have any outstanding credit card debt or personal loans, then one of your first steps should be to pay off as much as you can. This type of debt is expensive, so reducing your exposure is a good thing for your finances.
• Build up emergency savings: If you can build an emergency savings fund, then you will be in a better position to handle an unexpected bill or event.
• Make a switch: Now is the time to look for a better deal, be it for your energy bill, broadband or car insurance. If you can switch to a cheaper deal, then you can reduce your monthly outgoings.

The post Is the UK headed for a recession in 2022? appeared first on The Motley Fool UK.

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The pandemic has turned us into a nation of side hustlers. Nearly a quarter of people in the UK now have a project on the side to help boost their income. If you’re one of these people, have you thought about the tax implications? What you don’t want is for HMRC to wipe out any extra money you make through emergency tax.

Here, I investigate what emergency tax is and, more importantly, how you can protect your side hustle from it.

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What is the emergency tax?

An emergency tax charge can have a big impact on someone trying to get their side hustle off the ground. Research from Credit Karma found that 49% of side hustlers believe that emergency tax affects their ability to supplement their income – and 59% just think it’s unfair.

So what is it and why does it matter?

Emergency tax can be issued when HMRC doesn’t receive your income details in time after a change in circumstances. This could be any of the following:

• A new job
• Working for an employer after being self-employed
• Getting company benefits or the State Pension

It means that you’ll pay tax on all of your income above the basic Personal Allowance (£12,570 2021/22).

How can you avoid it?

The best way to avoid getting hit with emergency tax is to update your details with HMRC as soon as possible.

If you have started a new job, then give your P45 to your new employer.

For those who were self-employed and are now moving into employment, your new employer should give you a ‘starter checklist’ where you can provide details of your previous income.

If you have started getting company benefits or the State Pension, then you can update your details in the tax code online service or by contacting HMRC.

Unlike PAYE, income earned from a side hustle is untaxed. So it is up to you to inform HMRC of your extra income revenue. If you don’t, it’s not only an emergency tax code you will have to deal with. You could also face fines and interest on late payments.

You can do this by registering as a sole trader. This needs to be done even if you have been on furlough or are otherwise employed. It means that HMRC can then take into account earnings for all the jobs you do and make sure you are paying the right amount of tax.

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Is it possible to avoid tax altogether on a side hustle?

If you are considering a side hustle, it is best to weigh up all the tax implications beforehand. You don’t want your entrepreneurial initiative to be killed off by a big tax bill.

However, there are some scenarios where your side hustle can be tax free.

There are two special tax allowances: the trading allowance and the property allowance. These let you earn up to £1,000 of trading or property income a year and not pay a penny to the taxman.

Trading allowance

This covers the sale of goods and services. So if your side hustle is blogging or baking cakes, this one’s for you.

It’s important to note that the £1,000 figure is turnover. So remember to deduct your expenses (say the ingredients bought to make the cake) and keep a record of your invoices and receipts.

Property allowance

This allowance gives you a tax exemption of up to £1,000 a year if you earn income from land or property.

If your side hustle is something to do with the sharing economy – think renting out your driveway for parking or loft for storage – then this allowance could be a very good thing to know about.

Please note that tax treatment depends on your individual circumstances and may be subject to change in the future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

The post How to stop emergency tax from draining your side hustle appeared first on The Motley Fool UK.

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Everybody thought that the end of the Stamp Duty holiday would prompt house prices to finally fall. Yet, that has not been the case. Halifax’s house price index shows that prices rose by 1.7% in September – the largest monthly increase since February 2007.

So is there anything that can halt the runaway train that is house prices in the UK? Well, it may just be that a hike in interest rates could cause a derailment.

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What’s happening with house prices?

Last month, UK house prices recorded their strongest monthly rise since 2007. This translated to a £4,400 increase in the average cost of a home. It also reversed a three-month downward trend in annual growth that began in June. The average price of a house in the UK now stands at £267,500.

But it’s important to take these figures with a pinch of salt. The Stamp Duty holiday finally finished on 30 September, so the rise during the month would have included those rushing to meet the deadline.

Having said that, there is still evidence of a ‘race for space’ caused by the pandemic. Housing is also still in short supply, which only drives prices in one direction. So is there anything that can stop the house price boom?

What will higher interest rates do to house prices?

Enter stage left: higher interest rates. Right now, the housing market is experiencing low borrowing costs. A base rate of just 0.1% has led to some lenders offering sub 1% mortgage deals.

However, this is likely to change earlier than anticipated. Climbing inflation has led the Bank of England to indicate it may increase the base rate sooner rather than later. With interest rates having kept borrowing costs low for so long, any rise is likely to have a big impact.

Currently, average mortgage rates sit around 2%. If the base rate was to go up by 2% to combat inflation, then mortgage rates could go up to 3% or more.

Due to the house price boom, the ratio of average home prices to average earnings is already high. If you introduce higher borrowing costs, then the housing market is left vulnerable. Buyers may be priced out of the market.

It also changes the ‘opportunity cost’ of holding property. Opportunity cost is a way of describing what you may be missing out on when you go with your chosen option. So in this case, if you hold onto property with increased borrowing costs, you could be losing out compared to what you could earn from other forms of investment.

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Can rising interest rates bring house prices down?

It is likely that an increase in interest rates will have an impact on house prices. To buy a house, most buyers will need a mortgage, and if interest rates rise, the cost of that mortgage could become unachievable. With that, it’s likely there will be a drop in demand, which could lead to lower house prices.

It is hard to say what will happen for definite. There will still be people who want more space following the pandemic. And there is still a huge issue with housing supply.

But it may well be that higher interest rates could just take the heat out of house prices, moving them off of their current trajectory.

The post Will higher interest rates finally halt house prices? appeared first on The Motley Fool UK.

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The Pensions and Lifetime Savings Association has just confirmed what we’ve all been thinking – that because of the pandemic, things are going to cost more when it comes to retirement. A new report from the association shows that couples who want to achieve a comfortable living standard in their retirement are going to have to pay £2,200 extra a year.

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The cost of retirement is climbing higher

It’s hard to dodge all the headlines telling us that the cost of living is increasing. Surging energy prices and rising taxes have meant that everyday expenses are on the up.

But spending habits have also changed in the past couple of years. Retirees want more money for eating out, a higher personal grooming budget and, of course, the all-important Netflix subscription!

So how much more money do we need? The PLSA breaks its retirement standards of living into three levels: minimum, moderate and comfortable. Here’s the breakdown of the PLSA’s suggested annual budget adjustments in 2021.

Minimum Retirement Living Standard

This standard of living includes a week’s holiday in the UK, eating out about once a month and some reasonably priced leisure activities.

The budget for a single person has risen by £700 since 2019 to £10,900. For a couple, it’s increased by £1,000 to £16,700.

Moderate Retirement Living Standard

This is one layer up, adding in a little more financial security and flexibility. So think of a two-week holiday in Europe and eating out a few times a month.

To achieve this, a single person is looking at an annual budget of £20,800 (up £600 from 2019) and a couple will need £30,600 (up £1,500).

Comfortable Retirement Living Standard

This is where those little luxuries like regular beauty treatments and theatre trips come into play. But this living standard also sees the largest jump in costs for a couple.

A single person will need to budget an extra £600 for an annual income of £33,600. However, a couple is looking at £2,200 more at £49,700.

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Planning for the future

It can be tempting to push thoughts of your pension to one side, especially if you have other more pressing demands on your money.

But starting early and making a plan for your retirement savings could make a big difference later on in life. So it is important to think about what standard of living you want to achieve when you finally stop work.

Here are some key things to think about:

• State Pension: First things first, it’s helpful to find out how much State Pension you are entitled to. You can get an estimate using the calculator on the gov.uk website.
• Pension pots: It’s hard to get a handle on your retirement savings if you don’t know how much you already have. So it could be a good idea to check your pension pots and see what growth trajectory they are on.
• Plan ahead: Think about how much money you are realistically going to want in retirement. This means you need to think about when you want to retire and how much you want to live on each year.

If you don’t really know where to start, then talking to an independent financial adviser can help.

Unbiased is an online directory that looks to match you with a financial adviser in your area. An adviser can let you know whether you need to make changes to your pension plan in order to achieve the standard of living that you want in retirement.

The post Pandemic pushes cost of comfortable retirement up by £2,200! appeared first on The Motley Fool UK.

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At the end of September, the pound to dollar rate dropped to its lowest level since January! Worries about stagflation and supply chain issues drove the pound down to just $1.35 against the dollar.

But what does this mean for you and your money? I break down what is happening to the pound to dollar rate – and how this could impact your finances.

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What is happening to the pound to dollar rate?

Sterling dropped to an eight-month low at the end of September. The markets got spooked (and we’re not talking about Halloween) by the big bad wolf – stagflation.

Stagflation is a term coined to describe a situation when prices and wages are on the rise but the economy remains sluggish. It comes as energy prices are surging and the UK faces a supply chain crisis.

Yet, it’s not only what’s happening in the UK that matters. Over in the US, the US Federal Reserve has hinted that it’s close to moving away from ultra-low rate and multi-billion dollar bond purchasing policies of late. And there has been a rise in US Treasury Yields, which helped attract investors to the dollar.

The pound has recovered some ground since the end of September, but investors are hedging their bets that there will be a further drop in the coming months.

What impact will this have?

Most of us don’t think about exchange rates until we head on holiday. But in fact, what’s happening with the pound to dollar rate can have an impact on your personal finances.

Firstly, when the pound weakens, the FTSE 100 actually tends to rise. This is because a large portion of the FTSE 100’s revenues come from overseas – in dollars.

So when the pound falls against the dollar, the dollar earnings can buy more pounds when exchanged back into sterling. This makes those revenues more valuable.

However, a weak pound is damaging for UK importers and manufacturers. And it can hurt those pesky supply chains we keep hearing about, as their purchasing power is reduced. This pushes inflation higher, making goods more expensive.

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What does it mean for your investments?

It’s worth noting that the currency markets are quite volatile. FX trading carries quite a high risk because of how quickly things can change.

It’s interesting to know what’s happening with the pound to dollar rate in order to get a handle on how the economy is performing. But that doesn’t mean you instantly need to make financial decisions based on whether or not the pound has weakened.

The pound tends to underperform when markets are rocky. So it gives an indication of what is happening with investor sentiment. As a result, it tells you whether you need to do anything about your own investment portfolio.

Having said that, it’s usually better to invest with a long-term mindset. So only commit money that you won’t need in the next three to five years. This is because all investment carries risk, and previous performance does not guarantee future returns.

Generally speaking, having a well-diversified portfolio (geographically speaking) will insulate your money from currency movements.

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Despite the current mortgage price war, could we be facing the end of cheap mortgage deals? With inflation on the rise, it is not surprising that the Bank of England is saying it will increase interest rates next year. Borrowers have enjoyed record low rates for years, but could mortgages be the next thing to get more expensive?

I investigate how a hike in the base rate could impact your mortgage – and what you can do about it.

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Base rate and mortgage rates

The news of late has been focused on ultra-low mortgage deals. Several lenders have launched sub-1% fixed-rate products, and we have seen competitive deals even for those with a smaller deposit.

However, the reality of an increase in the Bank of England base rate is becoming more real by the day. Inflation is expected to hit 4% this year, and one of the ways the central bank can combat this is a rise in the base rate.

To understand why this could mean the end of cheap mortgage deals, we need to look at the correlation between the base rate and mortgage rates.

The higher the base rate is, the higher the swap rate will be. The swap rate is the price at which lenders can borrow money. If it’s more expensive to borrow money, then they charge more when it comes to mortgage rates.

Swap rates have already risen from 0.7% in August 2021 to 0.95% currently.

Securing a fixed-rate deal

If you are already on a fixed-rate mortgage deal, then an increase in the base rate is unlikely to affect you right now. But if you are nearing the end of your term – or you are on a tracker mortgage or your bank’s standard variable rate – then it may be time to think about getting a fixed-rate deal.

A fixed-rate mortgage is one where you pay the same throughout the length of the deal. So if you take out a two-year fixed-rate mortgage at 1.1%, you will pay that same interest rate for the full two years of the term.

You can typically fix your rate for two, five or 10 years. However, the cheapest deals tend to be attached to shorter terms.

What you may not know is that you can lock in a new rate up to six months before your deal ends. So if you are starting to get worried about a rise in interest rates and you are in that window, you can start shopping around now.

Fixing your rate may mean that you don’t benefit if the base rate is lowered. But considering it is currently at 0.1%, there’s really only one way it’s going to go. What a fixed-rate mortgage deal does give you is the security of knowing what your repayments are going to be each month.

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What to look for in a mortgage

The interest rate is just one part of the mortgage. When looking for a new deal, you also need to think about affordability, type, mortgage term and flexibility.

It is likely to be one of your biggest outgoings, so making sure you get a deal that suits you is important. It is also a good idea to use a broker. They will be able to compare several deals and advise you on which suits your circumstances best.

You can also use a mortgage calculator. This handy tool will give you an idea of how much you can borrow and what your monthly repayments will look like.

The post Say goodbye to cheap mortgage deals… appeared first on The Motley Fool UK.

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Boris Johnson is reportedly weeks away from announcing a 5.7% hike in the minimum wage. It’s currently set at £8.91 an hour for over 23-year-olds, and Johnson’s proposal would mean an increase to £9.42 an hour – the third biggest annual rise since the 2008 financial crash.

But with cuts to Universal Credit and increased National Insurance contributions on the horizon, will this rise actually make a difference? Or in the worst-case scenario, could it actually mean that companies start making job cuts?

[top_pitch]

What’s happening to the minimum wage?

It is thought that Boris Johnson is set to announce that the minimum wage in the UK will rise to £9.42 an hour. This is based on recommendations made by the Low Pay Commission (LPC), and the rise would come into effect in April 2022.

Currently, almost two million workers earn close to the wage floor. In fact, figures from the LPC suggest that 6.6 million workers earn less than £10.90 an hour.

Will it make a difference?

It’s common knowledge that our wallets are being squeezed. Inflation is on the rise, Universal Credit has been cut and increased National Insurance contributions are on the way.

So will an increase in the minimum wage actually help the lowest earners in society?

The problem is that the ‘National Living Wage’ is not set with reference to the actual cost of living. It is based on a target to reach 66% of median earnings by 2024, while the ‘Real Living Wage’ is independently calculated on what people need to get by.

Having said that, if the prime minister does opt for a bump of 5.7%, then it will bring the minimum wage in line with the Real Living Wage (£9.50 outside London, £10.85 in London).

But the minimum wage doesn’t address regional differences. Low-income earners in the capital don’t get anything more, despite having a higher cost of living. 

There is also the fact that, while companies may implement the new minimum wage, they could change their terms and conditions in order to make savings elsewhere. For example, they could stop paying workers for breaks or scrap discretionary annual bonuses.

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Are there drawbacks?

Some have argued that increasing the minimum wage will put added strain on small businesses. These are the same companies that are already having to plan for increased National Insurance payments.

There is concern that businesses could have to cut back on job roles in order to offer the minimum wage, leading to an increase in unemployment. 

Take home

For low-income earners, a boost to the minimum wage is good news. Based on current figures, it would bring their wages in line with the cost of living. However, with inflation on the up, this may soon change. And any benefit felt from the increase could be wiped out as things get more expensive.

You can use the gov.uk calculator to work out whether or not you are actually receiving minimum wage. If you are unsure as to whether you are entitled to it, then you can learn more at Citizens Advice.

The post Will the 5.7% minimum wage hike be enough for the lowest earners? appeared first on The Motley Fool UK.

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It’s hard to ignore the impact the human race is having on the environment. Extreme weather events all around the world mean environmental disasters are never far from the front pages. But could your pension help to solve the climate crisis?

With £2.6 trillion invested in UK pensions alone, it could well be that your pension is the secret superpower that could fight climate change. The rise of green pensions has shown that many UK investors are thinking along the same lines.

Here, I will break down what a green pension is, how to find out where your pension is invested and which providers are trying to make a difference.

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What is a green pension?

A ‘green pension’ is one that looks to make a positive impact on the environment and contribute towards a more sustainable future.

A lot of us are accidental investors through our retirement savings. This means you may not fully understand the impact your pension pot could be having.

Adopting a green approach means you don’t invest in companies that are contributing to the climate crisis. So you avoid fossil fuel companies or businesses that have poor environmental practices. Instead, you invest in things like renewable energy, electric vehicles and reducing textile waste.

Where is your pension invested?

Do you know where your pension is invested?

Research by Cushon found that the average UK pension pot unwittingly finances an average of 23 tonnes of CO2 emissions every year through the businesses it’s invested in.

It can be all too easy to live in blissful ignorance when it comes to your pension. But the more informed you are, the more in control you can be. Most people have what is called a defined contribution pension scheme. This is where your fund is invested on your behalf by your pension company.

If you haven’t specified with your provider where you want to invest, your money will be placed in a ‘default’ fund. These funds often just follow an index like the FTSE 100.

Therefore, if you want to tackle climate change with your pension, you will need to specify the type of fund you want to invest in. Providers often offer ‘ethical’ or ‘fossil fuel free’ options.

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Which providers are making a difference?

Pension schemes are changing. More and more are trying to tackle climate change and have more of an environmental, social and governance (ESG) focus.

The National Employment Savings Trust (NEST) – the UK’s biggest pension provider – has divested from fossil fuels this year. Instead, it has diverted £5.5 billion worth of investments towards ‘carbon aware’ companies.

Cushon has its own net-zero fund. And other online investment providers also have pensions that have a socially responsible focus. For example, Wealthsimple gives you the option to put your money into socially responsible initiatives that are weighted for ESG factors as well as performance.

And if your pension provider is yet to commit to net-zero emissions, then you can head over to Make My Money Matter and give them a nudge.

The post Can your pension pot tackle the climate crisis? appeared first on The Motley Fool UK.

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The Stamp Duty holiday had buyers flooding the housing market, hoping to save themselves thousands of pounds. However, over the past year, house prices have risen at a record pace. So much so, that in some areas, Stamp Duty savings have been wiped out 30 times over.

So was it worth it? Let’s investigate.

[top_pitch]

What happened to house prices?

The Stamp Duty holiday was introduced to give the housing market a boost following the first lockdown. When Covid-19 hit, viewings stopped, estate agents closed and the whole market ground to a halt.

In stepped Rishi Sunak, who introduced a nil-rate Stamp Duty band from £125,000 to £500,000 in England and Northern Ireland. This meant that buyers who bought homes worth up to £500,000 by 30 June 2021 saved up to £15,000.

Yet, in some areas of the country, house prices have climbed so high in the past 12 months that it has made this saving irrelevant.

According to stats from Hamptons estate agents, in Stoke-on-Trent, house prices rose by 18%. The result is that the average home in the area is now worth £20,590 more than it was last year. This is 28 times more than the average local Stamp Duty holiday saving.

This situation was repeated across the country. In two-thirds of local authorities, house price rises were at least triple Stamp Duty savings.

Was the Stamp Duty holiday worth it?

Whether the Stamp Duty holiday was considered a success or not depends on who you ask.

The housing market was hot property (pun intended) for most of this year. The holiday encouraged people to move who maybe wouldn’t have previously. It also meant that in some areas of the country, where house prices had previously flatlined, prices started to climb.

However, it wasn’t good news for everyone. The Stamp Duty holiday drove prices to record levels. While this benefitted those already on the property ladder, it penalised first-time buyers.

The irony is that first-time buyers already had their own Stamp Duty break pre-pandemic, but the new tax holiday took away that bargaining chip. Then, increased house prices meant that saving up a big enough deposit became that much harder.

And these latest figures show that those who bought during the Stamp Duty holiday did not save as much as they might have, because they had to contend with higher house prices.

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What does this mean for the future?

While experts are forecasting that house prices will cool, they are unlikely to drop by any meaningful amount. The end of the Stamp Duty holiday and the furlough scheme will likely dampen buyer demand, but overall house price growth is expected to remain in positive territory.

But now, buyers don’t have the benefit of the Stamp Duty holiday. So they are facing having to pay a premium for a new home, which means a larger deposit and a larger mortgage. 

But it’s not all bad news. If you are saving up to buy a home, there are government schemes in place to help you. And one of them is a Lifetime ISA.

If you are aged between 18 and 39, you can use a Lifetime ISA to save for your first home. You can put up to £4,000 a year into the ISA and receive a 25% bonus from the government, up to a maximum of £1,000. You can open one at a bank or building society, or with an investing solutions provider.

The future for buyers looks challenging. High house prices, the return of standard Stamp Duty thresholds and low supply all present a problem. But that doesn’t mean it’s hopeless. Mortgage rates are still at historic lows and there are government schemes around to help you out.

The post House price boom wipes out Stamp Duty savings 30x over! appeared first on The Motley Fool UK.

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Wave goodbye to the amber list! The government has decided to scrap its traffic light system and introduce some new, simplified UK travel rules. Now there are red list countries – and nothing else.

Here’s what you need to know.

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What are the new UK travel rules?

As of 4 October, there are no more green or amber lists. Instead, there is now a single red list. Plus testing rules have been eased for those travelling from non-red list destinations.

Rules for travellers from red list countries

Travellers arriving from red list destinations will still need to quarantine in a government-approved hotel for 10 days. The cost of this is £2,285 for one adult. For a full list of red list countries, check out the gov.uk website.

Rules for travellers who are fully vaccinated

If you are double jabbed and good to go, then entering the UK has become that bit easier. Those who have been vaccinated in the UK, the EU, the US or one of 18 other recognised countries can avoid self-isolating on entry into the UK.

However, everyone (except for the under-fives) will still have to pay for a PCR test two days after arrival.

According to reports, from later in October, fully vaccinated people coming into England will no longer have to do the PCR test on day two and can just take a cheaper lateral flow test. But no specific date for this change has been announced yet.

Rules for travellers who are not fully vaccinated 

If you haven’t been vaccinated, then you are required to do the following to enter the UK:

• A pre-departure test
• A PCR test on day two and day eight after arrival in the UK
• Self-isolate for 10 days at home

How does this affect your travel plans?

If you are fully vaccinated, then not much changes. Double-jabbed travellers were already able to visit amber countries without having to quarantine on their return.

However, you will still have to pay for a PCR test on day two. And with research showing that tests can add up to £876 for a family of four, your half-term break may still prove to be costly!

The big news is that vaccinations from outside the UK are now being recognised under the new UK travel rules. This could provide a welcome boost for the travel industry.

Unvaccinated travellers still have to jump through the same hoops. But with more than 80% of the population now vaccinated, travel will be much easier for the majority of us.

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What else do you need to know?

It’s important to understand that these are travel rules are for the UK. Other countries are likely to have their own rules and regulations. You may find you need to quarantine or undergo testing on your arrival at your destination, no matter what your vaccination status. It may well be that you won’t be let in at all.

Therefore it is best to check out the latest FCO foreign travel news and advice before booking. This way you can avoid any surprises later on.

Speaking of surprises, taking out travel insurance can help to protect you against them. A good policy will cover medical expenses if you are taken ill abroad, or compensate you if you lose your luggage. A very good thing to have!

Finally, in our increasingly cashless society, it’s also a good idea to have a travel credit card. This is a card that doesn’t charge you a foreign transaction fee if you use it in another country or if you make a cash withdrawal. It’s a much cheaper way to spend while on holiday.

The post No more amber list! Here’s the UK’s new and simplified travel rules appeared first on The Motley Fool UK.

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