PSA and child benefit

Moneyer

Anybody know if savings income below the new personal savings allowance threshold counts towards adjusted net income for the purposes of high income child benefit charge?

For example, if in 2016-17 one has exactly £50,000 of employment income (after pension contributions etc) and £500 of savings interest (paid gross due to to the PSA), is the adjusted net income £50,000 (meaning no child benefit charge) or £50,500 (resulting in a charge)?

CLAPTON

my understanding is that the 'allowance' is taxable ; it just happens to be taxable at zero percent; so yes I believe it counts towards lotla taxable earnings

madgagoo

Yes, any interest in the PSA counts towards income. The PSA is a rate that the income is taxed at, not an amount of exempted income.

Moneyer

Thanks guys - that's helpful to know.