- Client:MR Group
- Sector: Oil & Gas
- Location: Aberdeen
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MR Group is a leading international service provider to the upstream oil and gas industry, delivering critical solutions across rig inspection, well engineering, specialist resourcing, real-time monitoring, and accredited training. With a strong operational base in Westhill, Aberdeenshire, MR Group plays a key role in supporting the North Sea’s drilling and energy activities.
As the company scaled its UK operations and began working with a wider network of independent consultants and technical contractors, the leadership team identified a growing need for robust IR35 compliance. They approached our HR and compliance team to ensure that all contractor relationships met HMRC regulations and posed no legal or financial risk.
Challenges
1. IR35 Uncertainty and Compliance Gaps
The company had varying approaches when engaging contractors and lacked standardised documentation to assess employment status under IR35, leaving room for inconsistency.
2. Internal Misunderstanding of IR35 Implications
Project managers and department leads were unclear on HMRC’s assessment principles—such as control, substitution, and mutuality of obligation—used to determine employment status.
3. Reputational and Financial Risk
Without clear protocols, the organisation faced exposure to backdated tax liabilities, penalties, and reputational damage in the event of a compliance breach or HMRC investigation.
Solutions
1. IR35 Status Assessment and Audit
A comprehensive audit of all existing contractor engagements was conducted to determine IR35 status using HMRC’s guidelines and case law principles.
2. Revised Contractor Agreements
Customised contractual clauses were implemented to clarify working relationships and protect MR Group from misclassification risks.
3. Compliance Monitoring Framework
We introduced a streamlined internal process for evaluating and approving new contractor roles before engagement—ensuring consistency and ongoing compliance.
Results
- 100% IR35 compliance across all contractor engagements achieved within six weeks
- Zero contractor disputes or HMRC challenges since implementation
- Strengthened internal knowledge and confidence in managing contractor arrangements
