What is the coronavirus job retention scheme and what does it mean for self employed people?

CORONAVIRUS has spread rapidly across the globe, infecting more than 287,000 - more than 4,000 of those in the UK.

Many workers across the country have been laid off, with others experiencing a rapid reduction in their working hours - here's what we know about the job retention scheme.

⚠️ Read our coronavirus live blog for the latest news & updates

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What is the coronavirus retention scheme?

Prime Minister Boris Johnson has announced unprecedented measures to help the public with a ‘coronavirus retention scheme’.

Speaking at the daily coronavirus press conference, Chancellor Rishi Sunak on Friday announced a bailout for millions of workers, who will effectively have their jobs frozen during the pandemic.

He also revealed the government would cover 80% of staff salaries for those who are kept on by their employer but are unable to work.

The new coronavirus job retention scheme will cover wages up to £2,500 a month.

The payment relates to gross pay and will be backdated to March 1, lasting for an initial period of three months, but will be extended “if necessary”.

All UK businesses are eligible for the scheme.

Chancellor Rishi Sunak said the employee retention scheme will cover "everybody who is on the PAYE system through a company."

Asked about zero-hour workers, he said: "We will be publishing detailed guidance shortly. Depending on your particular employment contract it might be different depending on who you are.”

Sunak added: “Zero hours covers a variety of situations, but it may well be you are on a PAYE scheme and have a set of regular earnings and it will be covered depending on your particular circumstance.”

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Self-employed people will not be eligible for the coronavirus job retention scheme. They are also not eligible for Statutory Sick Pay, angering campaigners.

Instead self-employed people will need to claim Universal Credit.

Firms will have to apply to HM Revenue and Customs for the grants, and there is “no limit” on the amount of money payable through the scheme.

The employee retention scheme may only be up and running by the end of April, which is almost six weeks away.

The travel, hospitality and leisure industries have been arguably hit hardest by the pandemic, with airlines forced to ground flights and cancel holidays.

In order to tide flailing businesses over in the meantime, all firms in the UK will get a VAT holiday from next week.

Any VAT payments incurred between now and the end of June will be deferred and only need to be paid at the end of the tax year.

Unions including GMB and UNISON hailed the "unprecedented" financial package for millions of people struggling with the fallout from Covid-19.

The government has also launched a £330bn package of financial support and implemented a three-month holiday for mortgage payments.

All schools across the UK have been closed indefinitely.

Prime Minister Boris Johnson has urged the UK to actively undertake social distancing, announcing all pubs, clubs, cafes and leisure centres were officially ordered to close.

From next weekend the elderly, vulnerable and pregnant women will be asked to remain in their homes under self-isolation for 12 weeks.

More extreme measures such as enforced curfews and travel bans are all “under review”.

Since the beginning of the coronavirus outbreak, there have been huge falls in the FTSE, Dow Jones Industrial Average and the Nikkei markets.

The global deaths relating to COVID-19 have risen to at least 11,921.

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