What's Happening?
A survey by Grant Thornton reveals a growing trend among UK businesses to allow employees to work remotely from abroad, known as 'workcations'. The study found that 77% of mid-market businesses have policies
in place to manage international remote working, up from 59% in 2023. This approach is seen as a way to expand talent pools, reduce costs, and enhance flexibility and retention. However, businesses are also becoming more vigilant about tax compliance risks associated with remote work.
Why It's Important?
The rise of 'workcations' reflects a shift towards more flexible and global workforce strategies. By enabling employees to work from different locations, companies can attract diverse talent and improve employee satisfaction. This trend also highlights the need for robust compliance measures to mitigate potential tax risks. As remote work becomes more integrated into business operations, companies that effectively manage these challenges may gain a competitive edge in the global market.
What's Next?
Businesses are likely to continue refining their remote work policies to balance flexibility with compliance. As 'workcations' become more structured, companies may invest in technology and processes to monitor and support international remote work. This could lead to new opportunities for collaboration and innovation, as well as potential changes in workforce management and organizational culture.
