£29,000 Internship Salary After Tax 2025-26
Take-home pay with and without Plan 2 student loan repayments.
£29,000 internship — without vs with Plan 2 student loan
| Item | Without student loan | With Plan 2 |
|---|---|---|
| Gross salary | £29,000 | £29,000 |
| Income Tax | −£3,286 | −£3,286 |
| National Insurance | −£1,314 | −£1,314 |
| Student Loan (Plan 2) | — | −£153 |
| Annual take-home | £24,400 | £24,247 |
| Monthly take-home | £2,033 | £2,021 |
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 £29,000 internship salary mean in practice?
On a £29,000 internship salary, you take home £24,400/year (£2,033/month, £469/week, £94/day). Your net hourly rate — based on a standard 37.5-hour week — is approximately £12.51. Your earnings are 17% 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 £13/month (£153/year) are automatically deducted through PAYE. This brings your take-home down to £24,247/year. Your earnings fall in the Basic Rate (20%) band — for every £1 you earn you keep roughly 84.14p 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 — £29,000 internship
On £29,000 you keep 84p 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 £18 of IT+NI every working day; your gross sits 1.22× the annualised National Living Wage (£23,810). Benchmarked against the typical UK graduate starting salary of £30,000 (net ~£25,120), you are £1,000 below that baseline. A London-weighted internship at ~15% uplift (£33,350 gross) would add £3,132/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 (£407/month) fills a full £20,000 ISA in 50 months.
Frequently asked questions
Do interns pay Income Tax on a £29,000 salary?
Yes. At £29,000/year, your earnings exceed the £12,570 Personal Allowance. You pay Income Tax of £3,286 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 £29,000/year, you pay £1,314 in NI at 8%.
Do I repay student loan during an internship on £29,000?
Yes. Your salary of £29,000 exceeds the Plan 2 threshold of £27,295, so repayments of £153/year (£13/month) are automatically deducted through PAYE. This reduces your take-home from £24,400 to £24,247/year.
What is the take-home for a £29,000 internship after tax?
On a £29,000 internship salary, you take home £24,400/year (£2,033/month, £469/week) without student loan. After Income Tax of £3,286 and NI of £1,314, your effective tax rate is 15.86%.
What is the monthly take-home on a £29,000 internship?
On a £29,000 annual internship salary, your monthly take-home without student loan is £2,033. With Plan 2 loan deductions of £13/month, your take-home reduces to £2,021/month.
Does student loan repayment affect my internship take-home on £29,000?
Yes. On a £29,000 internship salary, Plan 2 student loan repayments of £13/month (£153/year) are deducted automatically through PAYE. This reduces your monthly take-home from £2,033 to £2,021. The repayment rate is 9% on earnings above £27,295.