From Mdg Advisors, we would like to inform you about the new measures implemented by the Government, through the publication today of the regulation “Real Decreto-Ley 8/2020”, which may affect the self-employed/ freelance.
First of all, we would like to inform you that we are awaiting the development of these regulations, as well as we are waiting for new measures to be adopted by the Government in these weeks, so we advise caution and you have our entire disposal to help you in this time of uncertainty. Self-employed associations are also working to try to get further actions on this in the Cabinet (“Consejo de Ministros”) next week.
Thus, we inform you that the main measure adopted in this “Decreto” for freelancers has been the regulation of the extraordinary benefit for cessation of activity (“Prestación extraordinaria por cese de actividad“), a benefit that the self-employed may apply that implies the payment of this benefit and the exoneration of the payments of the Social Security fees, if requirements are met. If not, there is no suspension of the payment of the fees and no benefit.
The main notes if this measure are the following:
Who can request this extraordinary benefit for cessation of activity?
– The self-employed whose activities are suspended due to the regulation of the “Real Decreto 463/2020, de 14 de Marzo, de declaración del Estado de Alarma” (Declaration of the State of Alarm). In other words, if you are among the sectors covered by this “Decreto” and you have had to close your business, you can apply for this benefit. Please find in the following link these sectors, in the annex at the end of the text: https://www.boe.es/buscar/doc.php?id=BOE-A-2020-3692
– The self-employed whose billing in the month prior to the application of the benefit is reduced by at least 75% in relation to the average billing of the previous semester. In other words, if this benefit is requested in April, the billing of the month of March should be compared with the billing of the previous semester, to determine if the billing has been reduced by 75%.
What requirements must be fulfilled?
– Be affiliated and registered, on the date of the declaration of the State of Alarm (March 14), in the Special Regimen of Social Security for Self-Employed Workers (RETA).
– In the event that the business activity is not directly suspended due to the regulation in the “Real Decreto 463/2020, de 14 de marzo”, it has to be proved that the billing is reduced at least by 75%, in relation to the billing in the previous semester.
– Be up-to-date in the payment of the Social Security fees. However, if it is not, this situation of non payment can be regularised by paying the outstanding fees due within 30 days.
What is the amount of the benefit?
– In general, the amount will be 70% of the regulatory base (“base reguladora”).
– In the event that the minimum contribution period (“período mínimo de cotización”) is not accredited, the amount will be 70% of the minimum contribution base (“Base de cotización mínima”) in RETA.
What is the duration of this benefit?
– The duration is 1 month.
– In the event that the Alarm State is extended and its duration exceeds one month, it will be expandable until the last day of the month in which the Alarm State ends.
– During this time it will be understood as contribution time, and will not reduce the periods of benefit for cessation of activity to which the beneficiary may be entitled in the future.
– This benefit is incompatible with any other Social Security benefits.
– The management of these benefits correspond to the mutual collaborators of the Social Security.
Apart from that, it should be take into account the possibility, regulated in this “Decreto”, of requesting a deferral on the mortgage payment of the main residence (vivienda habitual), not others, with some requirements, which may also be helpful.
Also, we would like to inform that the guarantee of water supply, energy and telecommunications, is applicable only for individuals that cannot eventually attend to the payment of those supplies, but this is not applicable for companies, they have to pay their suppliers.
Finally, several credit benefits have been approved with public finance, that companies (PYMES) and self-employed may can apply for. We must wait for its further policy development in order to verify the requirements that will be established to access these grants.
Again, we remain at your entire disposal for any questions you may have.
Thank you for trusting in our firm.