£21,000 Internship Salary After Tax 2025-26
Take-home pay with and without Plan 2 student loan repayments.
Below Plan 2 threshold — £0 student loan repayment
Plan 2 repayments only begin on earnings above £27,295. At £21,000, no student loan is deducted.
£21,000 internship — without vs with Plan 2 student loan
| Item | Without student loan | With Plan 2 |
|---|---|---|
| Gross salary | £21,000 | £21,000 |
| Income Tax | −£1,686 | −£1,686 |
| National Insurance | −£674 | −£674 |
| Student Loan (Plan 2) | — | −£0 |
| Annual take-home | £18,640 | £18,640 |
| Monthly take-home | £1,553 | £1,553 |
Plan 2 student loan during your internship
Student loan repayments are collected automatically through PAYE — they apply whether you are on a permanent contract, internship, or placement. If your internship is shorter than a full year, your actual repayment will be proportionally lower.
What does a £21,000 internship salary mean in practice?
On a £21,000 internship salary, you take home £18,640/year (£1,553/month, £358/week, £72/day). Your net hourly rate — based on a standard 37.5-hour week — is approximately £9.56. Your earnings are 40% below the UK median salary of £35,000 and sit close to or below the annualised National Living Wage (£12.21/hr × 35hrs = ~£22,369/year).
Your salary of £21,000 is below the Plan 2 repayment threshold of £27,295, so no student loan is deducted through PAYE. Your earnings fall in the Basic Rate (20%) band — for every £1 you earn you keep roughly 88.76p after tax and NI. If your salary rises above £27,295, repayments kick in automatically at 9% of the excess.
Interns on a PAYE contract have the same tax treatment as permanent employees — Income Tax, National Insurance, and student loan repayments all apply at the same rates. If your internship is shorter than 12 months, HMRC may have over-collected tax due to the standard weekly/monthly PAYE spreading; you can claim a refund at the end of the tax year using a P800 or self-assessment.
Personalised insights — £21,000 internship
On £21,000 you keep 89p of every £1 before student loan — Plan 2 stays dormant until your salary crosses £27,295. That works out at £9 of IT+NI every working day; your gross sits 0.88× the annualised National Living Wage (£23,810). Benchmarked against the typical UK graduate starting salary of £30,000 (net ~£25,120), you are £9,000 below that baseline. A London-weighted internship at ~15% uplift (£24,150 gross) would add £2,268/year to your net — before factoring in London rent typically £400-£600/month higher than regional cities. A £5,000 permanent raise post-internship would add £3,600 net (marginal rate 28%). You are using 100% of your £12,570 Personal Allowance, and saving 20% of take-home (£311/month) fills a full £20,000 ISA in 65 months.
Frequently asked questions
Do interns pay Income Tax on a £21,000 salary?
Yes. At £21,000/year, your earnings exceed the £12,570 Personal Allowance. You pay Income Tax of £1,686 at 20% on earnings above £12,570. Tax is deducted automatically through PAYE by your employer.
Do interns pay National Insurance?
Yes. National Insurance applies to all employees on earnings above £12,570/year (£242/week), regardless of whether you are on an internship, a permanent contract, or a temporary placement. On £21,000/year, you pay £674 in NI at 8%.
Do I repay student loan during an internship on £21,000?
No. Your internship salary of £21,000 is below the Plan 2 repayment threshold of £27,295. No student loan is deducted. Repayments only start once your earnings exceed the threshold.
What is the take-home for a £21,000 internship after tax?
On a £21,000 internship salary, you take home £18,640/year (£1,553/month, £358/week) without student loan. After Income Tax of £1,686 and NI of £674, your effective tax rate is 11.24%.
What is the monthly take-home on a £21,000 internship?
On a £21,000 annual internship salary, your monthly take-home without student loan deductions is £1,553. After Income Tax of £1,686/year and NI of £674/year, you keep £18,640 annually.
Does student loan repayment affect my internship take-home on £21,000?
No. Your internship salary of £21,000 is below the Plan 2 repayment threshold of £27,295. No student loan repayments are deducted through PAYE, so your take-home is unaffected. Repayments only begin once your earnings exceed £27,295.