Aid for the self-employed

It is estimated that more than 200,000 freelancers have had to close their businesses since the pandemic began, and as many as 300,000 more may do so later in the year. Likewise, 40% of the self-employed have had to resort to ERTEs to maintain their jobs and 81% have experienced significant savings on billing. Faced with this situation, the nation’s government has approved a number of relief measures. Those collected here are said to be in effect until May 31, 2021, although the government has warned of a possible change if the health trajectory of the pandemic improves.

This is the help that the self-employed are entitled to, taken from the guide prepared by the online tax advice platform for the self-employed Brag

Benefits in the event of temporary cessation of activity

Self-employed persons who have been forced to close down their business or paralyze their activity as a result of one of the approved restrictive measures are entitled to this financial benefit.

To access it, Requirement which must be fulfilled are the following:

-Be registered with Social Security as a self-employed person before February 1, 2021

– Be up to date with social security payments. If this is not the case, there is a period of 30 days to settle the debt and be entitled to the benefit.

The sum The benefit is 50% of the contribution basis and increases by 20% if the self-employed person has a state-recognized large family. Note that it can also be reduced by 40% in the case of marriages or unmarried couples where both opt for the benefit.

When declaring, keep in mind that during the time the benefit is being collected, the self-employment fee is not paid to Social Security, but the same is assumed to be declared.

This benefit is incompatible with employment unless the beneficiary receives a salary of less than 1.25 times the minimum interprofessional salary (more or less €1,100/month) for this activity.

Extraordinary Advantage

Extraordinary Advantage

In the event that the self-employed person cannot apply for the previous benefit, he is entitled to a special benefit if he meets the requirements Requirement the following

-Are given registered as self-employed before April 1, 2020.

– Be up to date with social security payments. If not, you must upgrade within 30 days to access the benefit.

– Do not generate a profit from activities in excess of €6,650 in the first half of 2021. They underscore the fact that profit is at stake, not income. Therefore, to calculate the income for the 2021 semester, the expenses of the same period must be subtracted and the result must be less than or equal to €6,650. The semester runs from January to June.

– In the first half of 2021 no more income than in the first quarter of 2020. That is, if the income in January, February and March 2020 was €10,000, in January, February, March, April, May and June 2021 must not exceed this amount.

This benefit is incompatible with employment, unless the salary for this activity is less than 1.25 times the minimum interprofessional salary (approximately €1,100/month).

In addition, the amount of the benefit is 50% of the contribution basis and is reduced by 40% in the case of marriages or unmarried couples if both opt for the benefit.

During the time the benefit is being drawn, the beneficiary does not pay their self-employment fee to Social Security, but is presumed to make the same contribution.

If the self-employed person is exempt from contributions due to the cessation of activity and the benefit is granted, he is liable to pay contributions for this concept from the following month in which the benefit ends. In this case, the self-employed contribution increases between 7.55 and 28.49 euros, depending on the contribution basis.

The administration to claim the benefit must be done with the mutual society where the self-employed person is registered.

They also point out in the statement that it is very important to know that from September 1, all benefits granted for this situation will be reviewed. This means that the self-employed person will apply for it now if he meets all the requirements except for the benefit. Since this data will not be known until the end of the first half of the year, the self-employed must proceed intuitively and anticipate how their activity will develop in the coming months. If you exceed the benefit of €6,650 or do not meet the income requirement, you must repay the benefit.

Provision compatible with the development of the activity

Self-employed people who work for others alongside their self-employment can apply for this benefit. For her is the Requirement that must be fulfilled are:

-That income from self-employment is reduced by 50% or more in the first half of 2021 compared to the second half of 2019.

-In addition, the benefit for the first half of 2021 must be less than €7,980 in total.

– Payment of contributions due to cessation of activity in the self-employment quota for social security. The employee must enter the social security contributions.

Within the same section they talk about it that seasonal freelancers. According to Declarando, self-employed people who worked under this modality in 2018 and 2019 can opt for this benefit if they meet the Requirement the following:

– Payment of self-employment contribution to Social Security between 4 and 6 months in 2018 and also in 2019, provided that at least 2 months of contributions were in the first half of each year.

– have not worked for more than 60 days as an employee in the first semester of 2021.

– Have not made a profit of more than €6,650 in the first half of 2021.

– Be up to date with social security payments.

The amount is 70% of the contribution basis and is not compatible with employment of more than 60 days as an employee.

From September 1, 2021, all preliminary decisions taken will be reviewed to determine whether the grant was granted without meeting the requirements.

It is important to note that the contribution bases for 2021 have not changed, so they are the same as for 2020. And the rise in self-employment rates is paralyzed for now. In short, Social Security will continue to charge the self-employed the same as in 2020.