The digital nomad lifestyle is extremely popular for employees working at U.K.-based businesses, but relocating could lead to paying income tax in both countries — in addition to paying social security in their host nation.
Data from RSM UK’s The Real Economy report reveals that “33% of organizations are responding to staffing challenges by allowing employees to work remotely outside of the U.K. in a bid to combat recruitment and retention issues in a tight labor market.”
While this provides greater opportunities for employees seeking a change of scenery, it can result in “increased risks for both employers and employees.”
“These more complex global working arrangements bring increased risks for both employers and employees,” Global Employer Services Partner Joanne Webber stated in the report. “Businesses need to make sure they are managed and monitored properly, to protect both employee and employer. It’s encouraging to see that over a third of our respondents set restrictions on length of time employees can work overseas, and with a further third planning to do this in the next 12 months.”