New aid to the self-employed due to cessation of activity

The consequences of the pandemic on the economy also affect, and greatly, small businesses run by freelancers. Aware of the destruction of this fragile business network, new aid has been provided for cessation of activity for people who are self-employed. They are regulated by Royal Decree-Law 2/2021. We will talk about the four new modes of provision.

Three considerations that should be taken into account and which are common to the four aids:

  • You can request the benefit that interests you before the mutual collaborator with the Social Security that corresponds to you.
  • One of the common requirements is be up to date with the payment of Social Security contributions. However, if you are not and want to request some help, you have a period of 30 days from when you request it to leave this debt closed.
  • In cases where it is required not to exceed a net income scale, if you see that you are going to end up exceeding it, you can give up the help anytime before April 31st.

When the authorities have forced you to close your livelihood

It is known as extraordinary benefit for cessation of activity. If you have been forced to close to follow the anti-contagion measures imposed, this is the benefit you must request.

  • When to request it: As of February 1, you can request it within 21 days after the closing of your activity. If you miss this period, the day of the request will be counted as the start of the benefit.
  • Amount: 50% of the minimum contribution base, which is around 470 euros. They can give you up to 20% more if you have a large family and stay mainly with your business.
  • Requirements: Your registration must appear in the RETA before January 1 of this year. You have to be up to date with payments with Social Security contributions.
  • Duration of aid: A maximum of 4 months or the last day of the month in which the anti-contagion measures end. In any case, at least until May 31.
  • Incompatibilities: You cannot work for someone else, unless you earn less than 1.25 times the SMI. You also cannot carry out an activity on your own. And it will not be compatible with other benefits, except those that were already compatible before closing your business.
  • Social Security contributions: You will keep the registration but you will not have to pay the Social Security contributions until May 31, or until the day before the end of the month after the anti-contagion measures have ended.

Benefit for cessation of ordinary activity

This feature is the same that was granted in 2020, but with some improvements. If you are going to continue with your activity, but notice a considerable decrease in your income, this is the benefit you should ask for.

  • When to request it: Within the first 21 days of February. If it is outside this period, the day after the request was made will be counted as the start.
  • Amount: 50% of your contribution base.
  • Requirements: You can request it if during the first semester of 2021 you foresee that you are going to charge 50% less than the same period of 2019. Of course, always invoice less than 7,980 euros at this time. In addition to being up to date with the payment of Social Security contributions (remember that it is a common requirement), you must have contributed at least 12 months.
  • If you pay by modules, you can also take advantage of this benefit. The requirement is that there is a 7.5% drop in membership in your sector.
  • Duration of aid: At the latest until May 31.
  • Incompatibilities: Compatible with self-employed and employed workers if added together they do not exceed 2.2 times the SMI. In addition, self-employment income must not exceed 1.25 times the SMI.
  • Social Security contributions: You will have to pay the installments, but they will be returned to you when the benefit arrives through your mutual, although it will not be exactly 100% of what you have paid, but 98.2%.

aid for freelancers

When you can’t access the ordinary

This happens when you have less than 12 months of contributions or when you pay the flat rate, which is not quoted due to cessation of activity.

  • When to request it: Within the first 21 days of February. If it is outside this period, the day after the request was made will be counted as the start.
  • Amount: 50% of the minimum base (about 480 euros).
  • Requirements: You can request it if you foresee that you are going to charge less in the first semester of this year than you did in the first semester of 2020. In any case, you will only access it if your income is less than 6,650 euros in the first semester of 2021.
  • Duration of aid: Within the first 21 days of February. If it is outside this period, the day after the request was made will be counted as the start.
  • Incompatibilities: In the same cases as those described in the first section, that is, in the extraordinary benefit for cessation of activity.
  • Social Security contributions: You will not have to pay the contributions, although you do have to maintain the Social Security registration.

Are you seasonal freelancer? You may also be entitled to a benefit

The new royal decree also extends this provision that started last summer. In addition, it modifies the access requirements so that more people who work as seasonal freelancers can benefit.

  • When to request it: Within the first 21 days of February. If it is outside this period, the day after the request was made will be counted as the start.
  • Amount: 70% of the minimum contribution base that corresponds to you (661 euros if you contribute by the minimum base).
  • Requirements: If you have been quoting as a self-employed person or self-employed for 4 to 6 months in 2018 and also in 2019. Of these, 2 months must have been in the first semester of each year. You will not be able to access if you have been employed for more than 60 days in the first semester of 2021, not more than 120 days in the same period of the years 2018 and 2019. Finally, your income must have been less than 6,650 euros in this first half of 2021.
  • Duration of aid: At the latest until May 31.
  • Social Security contributions: You will have to maintain the registration, but you will not have to pay the Social Security fee.

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