Personal Finance

6 ways Brexit will affect your pocket

Conor Dever

Conor Dever

Staff Writer

There's still so much we don't know about Brexit, but what we do know is that it won't be good for your pocket.

One of the most fundamental things about Brexit is the uncertainty it brings. So today we're doing our best Nostradamus impression and predicting some of the real-world ways that Brexit might impact on your pocket.

1) Travel

Usually if there were airline cancellations you needn't worry as under EU law a refund, compensation or rescheduled travel arrangement would be required by the airline.

However the UK will no longer be bound by these laws when it leaves the EU so you could find yourself shortchanged if your flight to the UK were to get cancelled post-Brexit. 

2) There will be no filling up the car

If the pound drops, which is highly probable, you may be forgiven for heading up North to seek out a few bargains for yourself. Well if you do find something up there and fancy bringing it back you might be in for a surprise at the border.

We might not know what the border will look like or what ramifications it will have on the peace process should one be reinstated, however we do know that according to customs regulations, you'll only be allowed bring back goods worth €430 at any one time without having to pay customs duty.

The duty to be paid will vary depending on the product but can be as high as 50% in more extreme cases. 

3) Online shopping is going to look very different

If you're someone who loves to shop online, things are going to be very different if you like to shop from UK-based stores such as Asos, Next and Amazon. 

If the UK leaves the EU with no deal, all online purchases over €22 will be liable to Irish VAT at 23%, while most goods over €150 will also be liable to customs duty. So a pair of jeans which you see for €100 is actually going to cost you at least €123 once Irish VAT is tacked on and more when you take into account the customs duty to be paid.   

Some of the more sophisticated retailers in the UK will operate on a “DDP” model – delivered duty paid, which means the price you see at the checkout will be the final price and will include all taxes and duties – but others will leave it to delivery companies here like An Post to collect the outstanding taxes before they hand over the goods, potentially leading to confusion among customers and complaints.  

Indeed, because of VAT and duties, the price for many online items from the UK will simply become unaffordable for many post-Brexit.  

4) No more British motors 

When the pound drops in strength, it drives a plethora of petrol heads across the border to seek out a nice motor for cheap.

But if the UK leaves with no deal and becomes a 'third party' for trading purposes, then according to EU rules, these vehicles will now be liable to 23% VAT when being imported into Ireland.

5) Roaming

Among the EU bloc countries, roaming charges are a thing of the past. When the UK leaves the EU, however, roaming charges could come back as the UK will be free to make its own rules.  

So you could potentially wrack up large roaming bills once more when you travel North or to the UK.  

6) Energy price hikes

Ireland imports 90% of its energy, and most of it comes from the UK.

The €4.6 billion market will definitely face challenges and changes, which will more than likely see hikes in energy prices for us here in the Republic, leading to higher costs to heat and light our homes. 

But that is not all: consumer prices across the board would almost certainly climb if energy costs for Irish manufacturers were to rise.

Of course if you're worried about rising energy prices, the quickest and easiest way to save on your bills is to switch supplier. Right now you could save over €350 on your annual energy bill just by switching. 

Get in touch

How do you feel about Brexit? Are you worried or do you think the EU and UK will manage to strike a deal? Get in touch and let us know your thoughts.

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