Understanding IR35: Inside vs Outside Rates in Our 2026 Highways Salary Survey
By Jay Cochrane, Senior Consultant, Highways
For the first time in our annual salary benchmarking publication, Carrington West’s 2026 Salary Survey includes detailed contract rate data for both inside and outside IR35 engagements across the Highways Project Delivery market. This update gives contractors and hiring managers a clearer picture of what to expect in the current climate, and what those headline rates really translate to in take home pay.
You can view or download our full suite of built environment salary surveys here, including highways and other key sectors.
Why Inside IR35 Matters More Than Ever
Despite the emphasis on outside IR35 rates in previous years, many contractors remain understandably cautious about inside IR35 offers. The perception often is that inside IR35 means significantly less income, with fewer benefits and greater paperwork. However, that isn’t always the case and understanding the true take home value and benefits is essential when evaluating contracts. At present, I’d estimate that around 45 to 50 % of our clients in the Highways Project Delivery space will only consider applications inside IR35, and this trend is likely to continue as liability shifts become more prevalent in the private sector.
Typical Inside IR35 Take Home Across Highways Roles
As a recruitment partner we have signed up to The FCSA Recruiter Partner Charter and have committed to a number of standards including only having FCSA approved umbrella partners on our approved supplier list.
Below are some of the most common gross contract rates we see translated into weekly take home pay under an inside IR35, as calculated by our umbrella partners. The figures should be used as a guide only and have been calculated to illustrate the broad differences. They are based on five shifts per week and including umbrella margin. They also assume current tax deductions and exclude holiday contributions, individual results will vary with factors such as tax codes or student loans to name a couple:
Daily Rate (Inside IR35) | Weekly Take Home (£) |
£300/day | £952.64 |
£350/day | £1,078.37 |
£400/day | £1,203.68 |
£450/day | £1,329.41 |
£500/day | £1,455.14 |
£550/day | £1,580.45 |
£600/day | £1,706.18 |
Key Advantages of Working Inside IR35
While outside IR35 engagements still have value for those wishing to maintain maximum flexibility, there are several often overlooked benefits to working inside IR35 through an FCSA accredited umbrella provider.
Main benefits include:
•No tax returns or NIC paperwork – all PAYE tax and National Insurance is handled on your behalf.
•Income predictability – ideal for budgeting and personal finance planning (e.g. mortgage applications).
•Employment style protections – statutory sick pay, maternity pay and bereavement support, which aren’t available if operating through a PSC outside IR35.
•Continuity of work with the same umbrella provider, with consistent processes and support across multiple contracts.
Choosing the Right Engagement for You
Whether you’re currently contracting or considering returning to the market, having access to up to date, real world rate data is invaluable. Our latest salary surveys are designed to help contractors make informed decisions and to help clients benchmark their offers competitively.
If you’re unsure how IR35 status will affect your take home pay or career planning, speak with one of our highways recruitment specialists. We’re here to help you understand your options and ensure you’re positioned strongly in a changing contracting landscape.