Is this the AP liquid reagent kit or another kit? For the AP kit you are to add the first bottle, shake vigorously for 5 seconds, then add the second bottle, and shake again for 5 seconds, then let sit for THREE minutes. This is one of the few AP tests where the tube will continue to "develop" after the 3 minutes.
If you are not doing any of those steps (specifically shaking the tube after the first addition), then yes, it might be inaccurate.
The fact is though that your reading is so high that I think even doing this incorrectly might not matter since your already getting a positive (unlike the nitrAte test where people see very low values if performed improperly).
And in this case with your tap water being 0.5ppm, I'd just use the tap. If your tank is ~10ppm or greater, using tap water that is 0.5ppm will not play much of a role. Now don't try to get the value down to below 1ppm (since obviously the tap water would constitute 50% of that), but aim for a definate 2-4ppm and then back track.
Again we really don't in fact CARE what the level is, it just needs to be lowered to between a 10:1 and 20:1 ratio of nitrAte to phosphate to prevent algae, but its always a good feeling to know your 50% PWC's are actually doing something.