The extension of the extraordinary cessation of activity benefit for the self-employed, approved by Royal Decree-Law 24/2020, will end on September 30. This decree also included an exemption from Social Security contributions for those receiving this extraordinary benefit. These workers did not pay their July contribution, received a 50% exemption in August, and a 25% exemption in September, with the full contribution due in October. Royal Decree-Law 24/2020 also included new aid for seasonal self-employed workers, who had not been eligible for the previous benefit.
We would like to inform you that the extension of the extraordinary benefit for cessation of activity, approved by Royal Decree-Law 24/2020, will end on September 30 (unless further extended). This decree-law also included the exemption from Social Security contributions for those receiving this extraordinary benefit. These workers did not pay their July contribution, received a 50% exemption in August, and will receive a 25% exemption this September, with the full contribution due in October. Royal Decree-Law 24/2020 also included new aid for seasonal self-employed workers, who were not eligible for the previous benefit.
Let us remember that those receiving the extraordinary benefit can apply for the ordinary benefit for cessation of activity, if they can prove a 75% reduction in the invoice for the third quarter of this year compared to the same quarter of the previous year (for this, it will not be necessary to wait until the end of the quarter: the ordinary benefit can be requested if compliance with the requirements is deemed to be met, which will be documented after said quarter).
Self-employed individuals with one or more employees must provide proof of compliance with all their labor and Social Security obligations when applying for benefits. To do so, they will submit a declaration of responsibility and may be required to provide the necessary documentation by the mutual insurance companies collaborating with the Social Security system or by the managing entity.
Self-employed workers who requested a moratorium on Social Security contributions will also have to pay, in accordance with Article 34 of Royal Decree-Law 11/2020, March 31, which established "granting six-month moratoriums, without interest, to companies and self-employed workers included in any Social Security scheme, provided that the activities they carry out have not been suspended with the declaration of the state of alarm and the requirements of Ministerial Order ISM/371/2020, April 24, are met."
This agreement aimed to provide some relief, at least until October, to offset potential losses for the self-employed during the summer. However, given the increase in outbreaks and infections, restrictions on self-employed activity have continued. Therefore, ATA has requested that the existing aid be extended until April 1, 2021.
You can contact this professional office for any questions or clarifications you may have.
Warm regards
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A Àmbit Assessor, SL has 40 years dedicated to the tax, comptable and labor consultancy of the Pime.
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