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 work 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..

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.

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.