With the water up to the neck. This is the group of self-employed, the lung of employment in Spain, forced to close their businesses due to the state of alarm to fight with the covid-19. There is no money in the box and many will have serious difficulties to meet their payments, but they will have to continue to meet their obligations with Social Security and also meet the Treasury on time in April.
The Social Security Ministry has already warned the group that they must pay the first 13 days of March, before the state of alarm is declared. The department headed by José Luis Escrivá reminds the freelancers on the networks that for those who are granted extraordinary help for cessation of activity, they will not automatically be billed for the rest of the quota. Of course, it also warns that if the entire month was paid for not having been granted the benefit to the self-employed before the quotas were transferred, Social Security will return the corresponding part ex officio, without the need for the self-employed to request it. All self-employed, therefore, must pay their contribution, close to 300 euros. Returns will follow, if applicable.
The successive announcements of the Executive are baffling these workers, given that there are many situations and assumptions that the Government decree does not contemplate or, simply, does not cover. For example, when the loss of income is less than 75%, for example 40% or 50%, the extraordinary help cannot be requested, not even when the self-employed receives a small widow’s pension, for example 150 euros.
“The government leaves the self-employed in the gutter and abandoned,” said the president of ATA, Lorenzo Amor, yesterday, who described as embarrassing that Social Security is demanding 13 days of contributions from the group in March due to “the lack of liquidity and the ruin of the self-employed ». He already warned of problems of non-payment, given that the worker who is unable to meet the quota “may find that when the benefit is to be resolved, it will be denied because of default or non-payment.”
The also vice-president the CEOE sent a letter a few days ago to Pedro Sánchez to exempt the group from paying the March contribution, in which he warned that if on the 31st of this month they saw the almost 300 euros of contribution would be generated in the group “frustration and discomfort”. No reply received.
Taxes in April
The largest association of self-employed workers has also addressed their requests to the Ministry of Finance. The proposal to the department led by María Jesús Montero is to postpone the tax obligations to July to avoid that these workers have to go to the consultancies in the alarm situation during April. They have also received no response.
SMEs and the self-employed may defer their tax debts, but not their ordinary tax payments to file, such as the quarterly VAT or personal income tax, so they will be obliged to meet their fees and taxes next April. The deferment of debts will be six months and during the first three, no interest will be earned.
Without income it will be difficult for many to meet their tax obligations. The government will make it easier for them to go into debt to pay the bills, which also does not convince a group of more than 3 million workers. In the case of self-employed SMEs, the ICO will guarantee 80% of its credits.
“The paradox of these measures is that they are being implemented without listening to the self-employed,” says Lorenzo Amor, after recalling that “while the self-employed who cease their activity will receive aid of 661 euros on average and will pay Social Security, the infected by coronavirus will have only 425 euros after paying Social Security. .