UK businesses embrace remote working abroad

As flexible work remains a core part of British life, and the cold winter months loom large, many employees are weighing up a working holiday abroad. A recent survey from the UK wing of Grant Thornton shows a big upwards trend in the number of mid-market businesses that allow UK based employees to take ‘Workcations’.

A digital nomad is a person who travels freely while working remotely using information and communications technology such as the Internet. Such people generally have minimal material possessions and work remotely in temporary housing, hotels, cafes, public libraries, co-working spaces, or recreational vehicles, using Wi-Fi, smartphones or mobile hotspots to access the Internet.

According to elvtr figures, British workers make up an estimated 8% of the global digital nomad community. And while living permanently in different locations abroad might have some downsides – difficulty accessing quality healthcare, and political instability, among other issues – the idea of at least working during a temporary stay overseas is increasingly appealing to workers in Britain.

A 28% chunk of working adults in the UK hybrid worked between January and March 2025. And according to a study by Grant Thornton, the number of companies which are adapting policy to allow for international remote working – should this cohort choose to travel – is rising.

Speaking to 600 UK business leaders about their firm’s approach to international remote working, the researchers found that businesses with a policy in place to manage the process had increased from 59% in 2023 to 77% in 2025. Meanwhile, of the firms with a policy in place, 99% said the policy allowed for employees to work abroad – subject to specific approval, or within set parameters. That represents a 7% rise since 2023.

Compliance checks

Davyd Fisher, Grant Thornton’s global mobility services partner, 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.  

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 30% of employers who allowed international remote working were not tracking where and for how long individuals were working abroad.

That potentially posed a risk of serious tax compliance issues, should overseas authorities identify any errors, for example costly penalties and filing obligations. However, the number of employers not considering this fell to just 2% by 2025, suggesting more businesses have invested in monitoring and compliance processes and programmes to mitigate risks.

“As hybrid and remote work models continue to mature, ‘workcations’ are becoming more structured and strategic,” Fisher added. “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.”