CORONAVIRUS - 21.10.2020
Test and Trace support payments - tax and NI
Lump sum payment. If on or after 28 September 2020 you’re asked to self-isolate, you’re entitled to a lump sum payment of £500 if:
- you were notified by NHS Test and Trace
- you are employed or self-employed (this includes being a member of a partnership)
- you can’t work from home and will lose income as a result; and
- you’re receiving Universal Credit, Working Tax Credit, income-based Employment and Support Allowance, income-based Jobseeker’s Allowance, Income Support, Housing Benefit and/or Pension Credit.
Tip. The Test and Trace support payments are managed by local authorities. If you think you qualify, check your local authority’s website for details on how to make a claim.
Tax and NI. The payments count as taxable income and so must be reported on your self-assessment tax return or reported to HMRC after the end of the tax year. However, special legislation is being introduced which exempts the payments from NI.
If you’re asked to self-isolate by the NHS Test and Trace service, you might be entitled to claim a £500 support payment. Check your local authority website for details on how to claim. The payment is taxable and so must be reported to HMRC after the end of the tax year.
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