Three in four companies allow staff to remote work abroad
Sara White, Editor, Business & Accountancy Daily
Spike in businesses giving UK based employees the option to work abroad for some of their working time, as long as tax compliance in place
There has been a big upwards trend in the number of mid-market businesses that allow UK based employees to take ‘workcations’ – meaning that employees by their own choice, work remotely from other countries for agreed periods of time.
The number of companies with an international remote working policy in place has increased to 77%, up from 59% just two years ago, according to a survey of business leaders by Grant Thornton, reflecting changing working patterns with hybrid and remote working the standard for office workers.
The changing work patterns and flexibility highlights the increasing importance of work life balance, not only as an expectation of staff post pandemic but also as a key factor for businesses when it comes to talent retention.
Nearly all (99%) businesses with a policy in place said they allow employees to work abroad, but subject to specific approval or within set parameters – this represents a 7% increase since 2023 (92%).
Businesses are also becoming increasingly savvy when it comes to mitigating the tax compliance risks that come with allowing ‘workcations’.
In 2023, Grant Thornton’s study found that nearly a third of employers (30%) who allowed international remote working were not tracking where and for how long individuals were working abroad.
This presented a high risk of serious tax compliance issues should overseas authorities identify any errors, for example costly penalties and filing obligations.
In 2025, this figure has reduced to just 2%, suggesting that businesses have invested in monitoring and compliance processes, and programmes to mitigate risks.
Davyd Fisher, global mobility services partner at Grant Thornton, said: ‘Enabling employees to work internationally benefits both staff and businesses – expanding talent pools, reducing costs, and boosting flexibility and retention.
‘UK employers are increasingly leveraging global mobility as a competitive edge, though evolving tax and compliance rules remain a challenge.
‘As hybrid and remote work models continue to mature, “workcations” are becoming more structured and strategic. The most successful organisations will treat international remote working not just as a perk, but as a core part of their workforce strategy – balancing flexibility with compliance and business needs.’
