ASSISTANCE FOR ENTREPRENEURSHIP CORONAVIRUS. The form on the impots.gouv.fr website has been adapted, allowing the self-employed and self-employed to apply for the Solidarity Fund for losses in April 2020. Have conditions changed? How to calculate the loss of turnover? We explain the procedure to follow.
[Mis à jour le 30 avril 2020 à 09h52] It’s official ! Since this Thursday morning, you can finally make your request tax-free aid of 1,500 euros on impots.gouv.fr for losses in April 2020, resulting from the coronavirus health crisis. Indeed, the tax administration has adapted the form. Now when you click on the request reason in your secure messaging, you are asked to select the period (March 2020 or April 2020). As a reminder, the procedures for the month of March end this Thursday, except “for artist-authors, GAEC members, as well as in communities overseas and in New Caledonia“For them only, the deadline is extended until May 12. Are you planning to apply by April, but are you running out of time? Don’t panic, you have until Sunday May 31, 2020 !
To date, the Solidarity Fund for the Self-Employed has benefited 990,000 small businesses, providing an average payment of 1,330 euros, the Ministry of Economy and Finance said on Thursday morning on Twitter. Do you want to know more about the number of aid granted to companies in the context of the crisis? Note that the government has posted an interactive table online, which you can consult here. We note in particular that the automobile trade sector is the one that has benefited the most from aid, followed by accommodation, catering and construction.
The start of proceedings for the month of April comes as the executive announced “the establishment of an allowance to finance the replacement of farmers prevented from working because of the coronavirus epidemic”, this Thursday. In detail, it concerns people who have to stay at home “either because they have coronavirus or because they have to babysit a child under 16 or a child under 18 with disabilities” , can we read in a press release. “The replacement allowance (…) supports these farmers by allowing the cost of replacement on the farm to be borne within a ceiling of 112 euros per day”.
The day before, the government announced a specific support system this time for health professionals in liberal, via financial aid “intended to compensate for operating costs” professionals under agreement, can we read in a press release. “Health insurance will thus pay differential economic aid, taking into account the income received during the confinement period, and making it possible to cover the average level of fixed costs borne by each professional”, it is detailed. “This aid will obviously take into account any aid received by professionals under other schemes (eg partial unemployment of employees or use of the solidarity fund)”. A deposit must be paid in early May, “calculated on the basis of the information that professionals will be able to provide information online on the AmeliPro portal from Thursday, April 30, 2020 “.
Last Friday, the government announced a support plan for the hotel and restaurant sector. For this sector specifically, the Solidarity fund for the self-employed must remain “open to businesses (…) beyond May“said Bruno Le Maire. In addition, access conditions will be “extended to those with up to 20 employees and 2 million” euros in turnover. “The ceiling for grants under the second part of the fund will be raised to 10,000 euros for all of these companies“, he added.
Do you want to know what are the conditions to be met in order to benefit from assistance for the self-employed? How should you proceed? If there are supporting documents to fill out? We answer all your questions.
Do you want to benefit from the Solidarity Fund for the first time? Keep in mind that it is always reserved for small businesses, namely very small businesses, the self-employed, the liberal professions and micro entrepreneurs, regardless of the tax system or the status. Here are the conditions related to the company which must be respected:
- The workforce must not exceed 10 employees.
- Your turnover must be less than one million euros
- Your annual taxable profit (before corporation tax and appearing on declaration 2065) must not exceed 60,000 euros. Note: from April, conditions change. The taxable profit “must not exceed 60,000 euros for companies in their own name (120,000 euros if the spouse of the entrepreneur intervenes in the activity of the enterprise under the status of collaborating spouse)”, specifies it in the latest version of the frequently asked questions published by the taxes. “For companies, the maximum taxable profit is 60,000 euros per partner and collaborating spouse“.
- The activity must have started before February 1, 2020 and there must not have been a statement of cessation of payment before March 1, 2020.
- You do not have an employment contract or a retirement pension.
- Please note, it is possible to benefit from financial assistance for the month of March if you have been on sick leave or off work to look after your children, but under certain conditions. Article 1 of Decree No. 2020-371 of March 30, 2020 indicates that the daily Social Security allowances received must not exceed 800 euros.
Do you meet the criteria listed above? It doesn’t stop there. The administration requires compliance with conditions directly linked to the health crisis. As a reminder, vou must also complete one of these two criteria :
- Your business has been the subject an administrative closure. This provision refers to the decree of March 15, 2020 supplementing the decree of March 14, 2020. It lists all of the establishments that must be closed, such as museums, restaurants and nightclubs, deemed not essential to the life of the Nation. You can find the full list on the Vie-publique.fr website.
- Or your business has suffered a loss of turnover of more than 50% compared to the reference turnover (read below).
Companies in receivership can also benefit from the Solidarity Fund. Same story for farmers gathered in groups.
To note : Linternaute.com was alerted by many readers, having been subject to an administrative closure and anxious to see that they still had to fill in their turnover by filling in the request form. They were therefore worried about necessarily having to fulfill the two criteria mentioned above. Asked by Linternaute.com, the DGFIP specifies that one must be completed or the other of these conditions. “If the applicant ticks ‘My business is prohibited from welcoming the public during the period’, he is entitled to assistance corresponding to the amount of the loss of his turnover. He just has to fill in his CA of March 2019 and his CA of March 2020 so that the form calculates the differential which will correspond to his aid within the limit of 1500 €“, the DGFIP had detailed to us. “Please make sure not to tick in the form ‘My company has suffered a loss of turnover greater than 50% over the period compared to the reference turnover ‘. The company is in fact either in the category “closing to the public” (amount of loss), or in the category “loss of higher turnover” (percentage of loss) “.
The Solidarity Fund is made up of two floors. If you meet the conditions set out above, you can benefit from the first floor, ie “aid equal to the declared loss of turnover, up to a limit of 1,500 euros“. Are you wondering about the reference taken into account to determine your loss of turnover? The conditions of turnover were revised for the losses for the month of April.
“We will take the last twelve months on average“, said Bruno Le Maire. Clearly, you can compare the turnover for the month of April 2020 to the average monthly turnover. A decree was published to this effect on April 16. It says that companies can compare “compared to the same period of the previous year; or, if they wish, compared to the average monthly turnover for the year 2019 ; or, for companies created after April 1, 2019, compared to the average monthly turnover over the period between the date of creation of the company and February 29, 2020 “.
We summarize the reference of turnover that you will have to take for the month of April :
|Companies existing on 04/01/2019||A choice : turnover for the month of April 2019 or 2019 average monthly figure|
|Companies created after 01/04/2019||Average monthly turnover between creation date and 02/29/2020|
|Entrepreneur who was granted sick leave, accident at work or maternity leave in April 2019||Average monthly turnover between 01/05/2019 and 01/03/2020|
Are you wondering about the rules that applied for March losses? Here they are :
|Companies existing on 01/03/2019||Turnover for the month of March 2019|
|Companies created after 01/03/2019||Average monthly turnover between creation date and 03/01/2020|
|Entrepreneur who was granted sick leave, accident at work or maternity leave in March 2019||Average monthly turnover between 01/04/2019 and 01/03/2020|
In a second time, some entrepreneurs can benefit from additional aid of 5,000 euros – compared to 2,000 initially. You must meet the following conditions:
- To have at least one employee
- Being unable to pay your claims within 30 days
- Or your bank refused you a cash loan.
“The amount of aid is between 2,000 and 5,000 euros depending on the size and situation of the company,” we can read in the frequently asked questions published by the tax administration. “This amount is fixed for all companies whose turnover is less than € 200,000”. Your turnover exceeds this amount? Here is how the amount of aid is determined:
- For a turnover between 200,000 and 600,000 euros: “the aid will compensate the cash balance up to 3,500 euros, with a minimum of 2,000 €”.
- For a turnover greater than 600,000 euros: “the aid compensates the cash balance up to 5,000 €, with a minimum of 2,000 €”.
On this side, nothing changes: the procedures remain the same. You always have to surrender on the taxes website, impots.gouv.fr, and connect to your personal space. Then go to your secure mailbox. Click on “Write” and select the reason for contact “I ask for help to companies weakened by the Covid-19 epidemic“. A form should appear. Here are the steps you need to take:
- Check the box certifying that you meet all the conditions, eight in total;
- Indicate the number of employees in CDD or CDI in your structure
- Mention your contact details: surname, first name, position (individual entrepreneur, company manager, chartered accountant, chartered accountant employee, Other), telephone and email.
- Indicate the SIRET and validate it.
- Select the period for which you would like help : for now, there is only one (March 1 to 31, 2020). As explained previously, we will have to wait until next Thursday, April 30, to start the procedures for the month of April.
- Calculate the amount of your aid : you must check one of the boxes “My business is prohibited from welcoming the public during the period” or “My company suffered a loss of turnover of more than 50% over the period compared to the reference turnover”. As several readers had pointed out, you must indicate your turnover in 2019 and in 2020 over the period, regardless of the box checked beforehand, even for the losses of April 2020. The administration is responsible for calculating the differential and, ultimately, the amount of aid you can claim.
- Indicate the bank details of your company.
- Specify if your “company was, on December 31, 2019, in difficulty within the meaning of Article 2 of Commission Regulation (EU) No 651/2014 of June 17, 2014”. If yes, complete the de minimis aid declaration form “in Annex II to the circular of September 14, 2015, pages 17-19”.
- Check the box “I certify on my honor that my company fulfills the conditions to benefit from this aid, the accuracy of the information declared (…). Article 441-6 of the penal code punishes with two years of imprisonment and with a fine of 30,000 euros the fact of providing a false declaration with a view to obtaining from a public administration or from a body responsible for public service mission an allowance, payment or improper advantage“.
What happens if you wish to benefit from the additional flat-rate aid of 5,000 euros? In that case, you will have to contact the Region. A dedicated platform must be opened by the latter. “In order for the services of the region to be able to examine the request, the company will enclose a supported estimate of its cash impasse, a brief description of its situation showing the imminent risk of bankruptcy as well as the name of the bank whose company is client having refused him a reasonable cash loan, the amount of the loan requested and his contact in the bank, “he said. The remainder will also be paid by the DGFIP.
Unfortunately no. At the end of the form, the tax administration specifies that once the form “validated, it will be final”. “The modification of your request or any additional requests for the period from April 1 to 30, 2020 will no longer be possible,” it says. It is therefore imperative that you be extremely rigorous when filling out this document.
Still struggling to find your way around? Note that it is possible to contact the taxes at 0 810 467 687 from Monday to Friday from 8:30 am to 5:00 pm (service € 0.06 per minute + cost of a call). You can also contact the corporate tax department which is in charge of your tax file.
“The request for aid must be made electronically, at the latest April 30 [pour le mois de mars]“, can we read in the decree.” The DGFIP will carry out first level checks and pay aid quickly to the applicant “, can we read in the document published by Bercy services. Asked in Le Figaro, Gérald Darmanin had indicated that theth installment was to be made “within three, four days”.