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Press release

Hidden risks of cross‑border and remote working highlighted to employers

Employers across Northern Ireland are being urged to take a more proactive approach to managing cross-border and remote workers, amid growing concern that many businesses may be unknowingly exposing themselves to significant tax, legal and compliance risks.

That was the key message from an Employer Solutions Breakfast briefing hosted by Grant Thornton Northern Ireland at Belfast’s Grand Opera House, which brought together tax, legal and industry specialists to examine the implications of an increasingly mobile workforce.

The event was held at a time of heightened focus on cross-border working arrangements in particular, with recent discussions between the UK and Irish governments highlighting the complexity of tax rules that are affecting a cross-border workforce on the island of Ireland that is estimated to be up to 20,000-strong.

Speakers at the event highlighted how the shift towards remote and hybrid working, accelerated significantly by the Covid-19 pandemic, has fundamentally changed how and where people work. Indeed, Office for National Statistics data suggests that around 13% of UK workers are fully remote, with a further 26% working in hybrid roles.

However, while this new flexibility presents clear opportunities for businesses to access wider talent pools, the event heard that it also brings a range of often overlooked compliance obligations.


Julie Buchanan, Global Mobility tax specialist at Grant Thornton Northern Ireland said:

“With cross-border and remote working becoming increasingly prevalent across Northern Ireland, the challenge for many organisations is that they don’t always have full visibility over where their people are working. That can create unintended tax, payroll and legal consequences. In some cases, businesses are only becoming aware of these issues when they are contacted by tax authorities, by which point it can be costly to address. The key message for employers is that it is vital for them to understand where staff are, plan ahead, and put the right structures in place. Employers who do not do this risk falling into compliance issues by accident.”

The briefing also explored the particular complexities of cross-border working on the island of Ireland, where employees may live in one jurisdiction and work in another, or move frequently between both.

Unlike some European border regions, there is currently no dedicated framework governing such arrangements, increasing the risk of unintended tax liabilities, payroll obligations and employment law exposure.

Jack Balmer from Tughans highlighted that remote and cross-border working can also give rise to employment law and immigration considerations, including situations where employees may acquire legal rights in another jurisdiction without their employer’s knowledge.

The event concluded with a panel discussion examining how organisations can practically manage these challenges, alongside a year-end compliance update for UK employers.

Grant Thornton emphasised that while the risks are real, the trend towards more flexible and international working is unlikely to reverse.

Colin Piggott, Head of Employer Solutions at Grant Thornton added:

“The opportunity for organisations to access talent and operate across borders is significant - but it needs to be managed carefully. Our focus is on helping businesses take advantage of that opportunity in a way that is compliant, efficient and sustainable. We are encouraging employers to take a step back and assess their current position - understand where their people are based, identify any potential risks, and put the right frameworks in place. Taking action early can prevent much more complex and costly issues arising further down the line.”

ENDS

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