£28,000 Internship Salary After Tax 2025-26
Take-home pay with and without Plan 2 student loan repayments.
£28,000 internship — without vs with Plan 2 student loan
| Item | Without student loan | With Plan 2 |
|---|---|---|
| Gross salary | £28,000 | £28,000 |
| Income Tax | −£3,086 | −£3,086 |
| National Insurance | −£1,234 | −£1,234 |
| Student Loan (Plan 2) | — | −£63 |
| Annual take-home | £23,680 | £23,617 |
| Monthly take-home | £1,973 | £1,968 |
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 £28,000 internship salary mean in practice?
On a £28,000 internship salary, you take home £23,680/year (£1,973/month, £455/week, £91/day). Your net hourly rate — based on a standard 37.5-hour week — is approximately £12.14. Your earnings are 20% below the UK median salary of £35,000 and sit above the annualised National Living Wage (£12.21/hr × 35hrs = ~£22,369/year).
Because your salary exceeds the Plan 2 repayment threshold of £27,295, student loan repayments of £5/month (£63/year) are automatically deducted through PAYE. This brings your take-home down to £23,617/year. Your earnings fall in the Basic Rate (20%) band — for every £1 you earn you keep roughly 84.57p after tax and NI (before student loan).
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 — £28,000 internship
On £28,000 you keep 85p of every £1 before student loan and 84p once Plan 2 deductions kick in (9% on the excess above £27,295). That works out at £17 of IT+NI every working day; your gross sits 1.18× the annualised National Living Wage (£23,810). Benchmarked against the typical UK graduate starting salary of £30,000 (net ~£25,120), you are £2,000 below that baseline. A London-weighted internship at ~15% uplift (£32,200 gross) would add £3,024/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 (£395/month) fills a full £20,000 ISA in 51 months.
Frequently asked questions
Do interns pay Income Tax on a £28,000 salary?
Yes. At £28,000/year, your earnings exceed the £12,570 Personal Allowance. You pay Income Tax of £3,086 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 £28,000/year, you pay £1,234 in NI at 8%.
Do I repay student loan during an internship on £28,000?
Yes. Your salary of £28,000 exceeds the Plan 2 threshold of £27,295, so repayments of £63/year (£5/month) are automatically deducted through PAYE. This reduces your take-home from £23,680 to £23,617/year.
What is the take-home for a £28,000 internship after tax?
On a £28,000 internship salary, you take home £23,680/year (£1,973/month, £455/week) without student loan. After Income Tax of £3,086 and NI of £1,234, your effective tax rate is 15.43%.
What is the monthly take-home on a £28,000 internship?
On a £28,000 annual internship salary, your monthly take-home without student loan is £1,973. With Plan 2 loan deductions of £5/month, your take-home reduces to £1,968/month.
Does student loan repayment affect my internship take-home on £28,000?
Yes. On a £28,000 internship salary, Plan 2 student loan repayments of £5/month (£63/year) are deducted automatically through PAYE. This reduces your monthly take-home from £1,973 to £1,968. The repayment rate is 9% on earnings above £27,295.