How much can freelance programme managers earn in IT?

In today’s technology jobs market and as 2025/26 fast approaches, freelance programme managers play a crucial role in overseeing and coordinating large-scale projects, across sectors like finance, technology, and healthcare.

The IT programme manager bandwagon just got a spoke in its wheel: the OPW rules

But, as more tech contractors consider moving into the senior leadership role of programme management, a key factor for earnings has emerged -- arguably more determinative than candidate availability and demand; the IR35 tax legislation of 2021.

Indeed, whether a contract falls inside or outside IR35 significantly impacts how much programme managers earn, in terms of their take-home pay, writes Ben Quinn, head of technology recruitment at Leap29.

Here, exclusively for Free-Work, I want to explore earnings brackets for programme managers under both IR35 status scenarios, i.e. inside the off-payroll working rules (meaning the OPW rules apply), and outside the off-payroll working rules (meaning the OPW rules do not apply).

How much do freelance tech programme managers earn a day, depending on experience?

Contract or freelance programme manager rates in the UK can vary based on experience, industry, location, and, as said, IR35 status.

Below is an overview of daily programme manager rates:

• Junior Programme Managers (experience of 1-3 years) – Generally, these rates start around £400-£500 per day -- inside IR35. For contracts outside IR35, junior programme managers may see slightly higher day rates, typically around £500-£600.

• Mid-Level Programme Managers (3-7 years’ experience) – Rates range from £600 to £800 per day. Inside IR35, a daily rate of around £600 is more typical, while outside IR35, £700-£900 is achievable.

• Senior Programme Managers (8+ years’ experience) – Experienced programme managers with a track record of eight years and more can command between £800 and £1,200 per day. Inside IR35 contracts pay is on the lower end of that range. Outside IR35 programme managers tend to command £1,000+ per day, as clients often increase pay to offset additional tax liabilities.

Inside vs. Outside IR35: Understanding the impact on programme manager take-home pay

Before we proceed, here’s a recap on the UK’s reformed IR35 tax legislation of 2021 so there is no doubt about this divisive framework.

Introduced in 2000, but reformed on April 6th 2017 in the public sector, and on April 6th2021 in the private sector, IR35 affects how contractors are taxed, depending on whether they are considered “employed” (inside IR35) or “self-employed” (outside IR35) for tax purposes.

• Inside IR35: Contractors using their own limited company are taxed similarly to employees, meaning they pay income tax and National Insurance (NI) as if they were employed. Due to this, contractors inside IR35 receive a lower take-home pay. In addition, companies often handle payroll through umbrella companies, which impose fees to use.

• Outside IR35: Contractors using their own limited company and determined as outside IR35 can pay themselves through dividends, allowing for a more tax-efficient structure. This means a higher net income compared to those inside IR35, making outside IR35 contracts typically more lucrative.

IR35 status: who decides?

In the private sector today (and since 06.04.24), limited companies with an end-client organisation defined as medium-sized, or large, have their IR35 status determined by the end-user -- the client.

In the private sector today, limited companies with an end-client organisation defined (under the Companies Act) as a “small company,” can decide their IR35 status for themselves.

In the public sector today (and since 06.04.17), limited companies supplying a taxpayer-funded end-user have their IR35 status decided by that end-user -- the client.

Industry variations in day rates for programme managers – depending on outside or inside IR35

Certain industries offer higher day rates, which can help offset the adverse tax implications of working on a role determined as inside IR35.

Here are four key examples of how programme manager rates differ with sector and IR35 status:

1. Finance and Banking – With highly regulated environments and complex project demands, finance sector programme managers earn between £700 and £1,000 per day. For inside IR35 roles, rates lean towards £700-£850, while outside IR35 contracts can push beyond £1,000.

2. Technology – Demand for programme managers overseeing digital transformations remains high, with day rates between £600 and £900. Inside IR35 contracts are generally between £600-£700, while outside IR35 contracts can reach up to £900.

3. Healthcare and Pharmaceuticals – Rates range from £650 to £1,000 per day. Inside IR35 contracts offer closer to £650-£800, while outside IR35 roles can pay up to £1,000 for large-scale, high-stakes projects.

4. Public Sector – Due to limited budgets, public sector rates are typically lower than in the private sector. Inside IR35 day rates range between £500 and £700, while outside IR35 contracts may reach £750.

Four factors influencing contract programmer manager pay rates and IR35 status

There are several elements affecting rates and IR35 status, but four key considerations are:

• Project complexity: Higher-stakes projects with complex requirements tend to command higher rates, especially if they require niche expertise or Agile, PRINCE2, or MSP certification.

• Industry standards: Some industries (especially finance and the public sector) have historically leaned towards inside IR35 contracts, whereas industries with a strong remote work culture, such as Tech, might offer more outside IR35 contracts.

• Duration of contract: Short-term, urgent projects often come with outside IR35 status and higher day rates. Conversely, longer-term projects, especially within large organisations, are often inside IR35.

• Working practices and contract: A combination of the contractor’s day-to-day working practices, informed by the provisions and terms of the contract, determine the IR35 status of a role. The classic IR35 status factors are Control; Personal Service/Substitution, and Mutuality of Obligations. Secondary factors include Financial Risk and Being In Business On Your Own Account.

Four hacks to maximise earnings as a contract/freelance programme manager in IT

1. Focus on sectors with outside IR35 contracts: Some tech and healthcare roles, for example, are more likely to offer outside IR35 opportunities. Networking and working with specialist agencies can help identify when these roles are coming up.

2. Negotiate higher rates for inside IR35 contracts: Given that inside IR35 status affects take-home pay, some companies are open to negotiating rates to help make the contract more appealing – particularly to high-calibre talent.

3. Get industry-recognised certifications: Having tech certifications like PRINCE2, Agile, or MSP will set you apart from the competition, and should make it easier to command higher rates, almost regardless of the assignment’s IR35 status.

4. Build strong client relationships: Building trust and demonstrating your value can sometimes lead to an outside IR35 contract, especially if you negotiate for an advisory or consultative role as a programme manager, instead of hands-on project delivery.

TL;DR: Freelance programme manager pay as a techie and its key determinant -- IR35 status

Contract and freelance programme managers in the UK’s technology sector have a lot to gain from both inside and outside IR35 contracts, although the latter generally allows for more tax-efficient earnings, unfortunately, they tend to be less available.

Industry, project complexity, and location play substantial roles in setting rates, but by leveraging certifications, industry expertise, and the right contracts, with the help of niche agents or trusted client representatives, contract programme managers can still maximise their income and thrive in today’s market, in spite of what may sometimes feel like the reformed IR35 legislation’s best efforts.