Here, you can take a look at the new measures that have been published in the BOE, regarding authorized help for self-employed workers and we will also highlight their implications based on the latest announcements.
Help for Self-Employed Workers: Can I apply for it?
It is intended for those who are in one of the following two situations:
- Self-employed whose activity has been suspended due to the Royal Decree 463/2020.
- Self-employed whose turnover in the month prior to which the aid is requested has decreased by at least 75% compared to the previous six-month period. The self-employed included in the first case can now apply for assistance.
Those who are included in the second option will have to wait until April since the turnover for the month of March is the one that can be compared with that of the previous semester (September/March). It makes no sense to request it in March because the month to compare would be February (the last full month) and in this month the health crisis effects were not known.
The following requirements must be met:
- Be registered in the Social Security Special Scheme for Self-Employed on March 14. It is not necessary to have coverage for cessation of activity.
- The drop of 75% of the turnover must be proven ONLY in the case of those who take advantage of the aid based on the second option. Those self-employed whose activities are suspended based on RD 463/2020, do not need to prove this.
- You must be up to date with the payment of Social Security contributions. If you have some debts, you will have 30 calendar days to catch up. After that, it will be considered as a granted deferment that is up to date with payments.
- No minimum registration period is required in the Self-Employed Scheme.
The amount of the aid will be:
- 70% of the monthly regulatory base. This base is the average of the last 12 months.
- Those who have not contributed those 12 months under this scheme will be entitled to a 70% aid of the minimum regulatory base.
- The aid is subject to maximum amounts that depend on the personal and family situation of each taxpayer.
The aid will last until the last day of the month while the State of Alarm lasts, as long as the requirements are maintained. Its duration is expected to be approved until April 11.
There were certain existing forms, but they have been deactivated to approve some changes. Those already submitted are still being processed.
Remarks
- The amount of the benefit for the self-employed who are listed on the minimum regulatory base will be around €661.
- If the self-employed worker has not been registered in the previous semester, the comparison to determine the drop in their turnover will be made with the average of the months that they have been.
- The deadline to apply for the benefit ends on April 14. If the State of Alarm continues, this period will be longer.
- Those self-employed workers whose activity has been suspended do not have to process their deregistration either with Social Security or in the Treasury.
- Those self-employed who claim the benefit due to a decrease in turnover must remain registered.
- During the validity of the benefit, no contributions have to be paid to Social Security. Even so, this period will count as a contribution period for all legal effects.
- The self-employed contributions that have been paid for the benefit period will be returned by Social Security without the need to request it.
- This aid is incompatible with any other Social Security aid to which one is entitled (medical leave, maternity, paternity…)
- The self-employed who have accepted an ERTE for their workers will have to attach said presentation to the application.
- Taking advantage of this aid does not imply the loss of any bonus (like the Flat Rate for self-employed workers)
- Other collaborating self-employed workers (direct family members of the applicant) are also entitled to this benefit as long as the requirements are met.
- The self-employed with multiple activities (who are self-employed and employees at the same time) are also entitled to this aid as long as they meet the established conditions.
Presentation of the Generalitat of Calatunya
It applies only to those who are on the BOE list as businesses to be closed and who can also prove a drop in their turnover. If the activity is not in the BOE, there is no access, even if their income has diminished.
The drop in income must be demonstrated by comparing the billing for the month of March 2020 with that of the month of March 2019. If they were not registered on that date, the comparison will be made with the average benefits from the date of registration.
It speaks of a “drastic and involuntary drop” in turnover but conditions the aid to possible losses (which is not the same thing because a professional can have a drop in turnover without losses.).
It is also required that you have no other source of income.
It can be requested from April 1 and it will be processed through the Generalitat website.
Regarding the amount, the way to calculate the benefit has not been determined, as well as the required documentation.
It is incompatible with any other aid, benefit, subsidy or grant, public or private, intended for the same purpose.
Self-Incorporated
Although it seems that self-incorporated also have access to this help, it is not yet clear with what criteria these cases are to be treated. Many assumptions are taken for granted in the media, but these are still only estimations.
The only case in which it seems clear that someone will be entitled to the benefit would be when the company has applied for an ERTE of its employees since this implies the suspension of the activity.
For the rest of the cases, we will provide you with more information as soon as this subject is clearer.
Aid to Companies
For companies, there is also the possibility of deferring IVA and the Personal Income Tax for up to 3 months without interest and 6 months with interest.
Do you need extra support?
In Entre Trámites we offer various services of management, advice and support in bureaucratic processes for state aid, including loans and grants for self-employed workers, SMEs, and other companies.
Contact us! Through the contact form you can leave your details for us to call you, schedule a free consultation with us, or simply text our WhatsApp.
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