Cross-border working and NIC updates for mobile employees

Chris Girdlestone reminded us about the complexities in travel expenses and reliefs introduced by the foreign income and gains (FIG regime) on 6 April 2025, and explained how they're creating additional risk for businesses with cross-border workers. 

The qualifying criteria for certain travel and subsistence expenses (including 'home leave') has changed. Employers need to ensure their expense policies correctly analyse eligibility so relief is only claimed where appropriate, and non-qualifying amounts are reported properly. The changes took immediate effect, with no transition period for those previously qualifying under the old rules, so any analysis undertaken before the changes should be revisited. Resident non-domiciled individuals who were previously entitled to relief on qualifying home leave expenses for five years may now only receive relief for four years if they qualify for the FIG regime. If residents don't qualify for it, relief stopped immediately when it came into force. Care is also needed for related costs, such as visas, which aren't always qualifying.