£38,000 Internship Salary After Tax 2025-26
Take-home pay with and without Plan 2 student loan repayments.
£38,000 internship — without vs with Plan 2 student loan
| Item | Without student loan | With Plan 2 |
|---|---|---|
| Gross salary | £38,000 | £38,000 |
| Income Tax | −£5,086 | −£5,086 |
| National Insurance | −£2,034 | −£2,034 |
| Student Loan (Plan 2) | — | −£963 |
| Annual take-home | £30,880 | £29,917 |
| Monthly take-home | £2,573 | £2,493 |
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 £38,000 internship salary mean in practice?
On a £38,000 internship salary, you take home £30,880/year (£2,573/month, £594/week, £119/day). Your net hourly rate — based on a standard 37.5-hour week — is approximately £15.84. Your earnings are 9% above 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 £80/month (£963/year) are automatically deducted through PAYE. This brings your take-home down to £29,917/year. Your earnings fall in the Basic Rate (20%) band — for every £1 you earn you keep roughly 81.26p 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 — £38,000 internship
On £38,000 you keep 81p of every £1 before student loan and 79p once Plan 2 deductions kick in (9% on the excess above £27,295). That works out at £27 of IT+NI every working day; your gross sits 1.60× the annualised National Living Wage (£23,810). Benchmarked against the typical UK graduate starting salary of £30,000 (net ~£25,120), you are £8,000 above that baseline. A London-weighted internship at ~15% uplift (£43,700 gross) would add £4,104/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 (£515/month) fills a full £20,000 ISA in 39 months.
Frequently asked questions
Do interns pay Income Tax on a £38,000 salary?
Yes. At £38,000/year, your earnings exceed the £12,570 Personal Allowance. You pay Income Tax of £5,086 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 £38,000/year, you pay £2,034 in NI at 8%.
Do I repay student loan during an internship on £38,000?
Yes. Your salary of £38,000 exceeds the Plan 2 threshold of £27,295, so repayments of £963/year (£80/month) are automatically deducted through PAYE. This reduces your take-home from £30,880 to £29,917/year.
What is the take-home for a £38,000 internship after tax?
On a £38,000 internship salary, you take home £30,880/year (£2,573/month, £594/week) without student loan. After Income Tax of £5,086 and NI of £2,034, your effective tax rate is 18.74%.
What is the monthly take-home on a £38,000 internship?
On a £38,000 annual internship salary, your monthly take-home without student loan is £2,573. With Plan 2 loan deductions of £80/month, your take-home reduces to £2,493/month.
Does student loan repayment affect my internship take-home on £38,000?
Yes. On a £38,000 internship salary, Plan 2 student loan repayments of £80/month (£963/year) are deducted automatically through PAYE. This reduces your monthly take-home from £2,573 to £2,493. The repayment rate is 9% on earnings above £27,295.