£40,000 Internship Salary After Tax 2025-26
Take-home pay with and without Plan 2 student loan repayments.
£40,000 internship — without vs with Plan 2 student loan
| Item | Without student loan | With Plan 2 |
|---|---|---|
| Gross salary | £40,000 | £40,000 |
| Income Tax | −£5,486 | −£5,486 |
| National Insurance | −£2,194 | −£2,194 |
| Student Loan (Plan 2) | — | −£1,143 |
| Annual take-home | £32,320 | £31,177 |
| Monthly take-home | £2,693 | £2,598 |
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.
Frequently asked questions
Do interns pay Income Tax on a £40,000 salary?
Yes. At £40,000/year, your earnings exceed the £12,570 Personal Allowance. You pay Income Tax of £5,486 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 £40,000/year, you pay £2,194 in NI at 8%.
Do I repay student loan during an internship on £40,000?
Yes. Your salary of £40,000 exceeds the Plan 2 threshold of £27,295, so repayments of £1,143/year (£95/month) are automatically deducted through PAYE. This reduces your take-home from £32,320 to £31,177/year.
What is the take-home for a £40,000 internship after tax?
On a £40,000 internship salary, you take home £32,320/year (£2,693/month, £622/week) without student loan. After Income Tax of £5,486 and NI of £2,194, your effective tax rate is 19.2%.