Cessation of activity of Self-employed. Extraordinary benefit

News regarding the extraordinary benefit for the cessation of activity of Self-employed. This extraordinary benefit is contemplated in article 17 of RDL-8/2020

The cessation of activity of Self-employed may be requested by those, with or without dependent workers, affected by the declaration of the State of Alarm. In addition, a series of requirements must be met, as explained in a previous note.

Benefit for cessation of activity of Self-employed

The transfer of the payment of this benefit by the mutuals is planned for 17 April next. This first payment will be made from 14 March to 13 April 2020. The date of payment will depend on each bank and when it is made.

Subsequently, there will be further payments, as more files are resolved and submitted pending review of the volume of income for the months of March and April 2020.

Depending on the receipt of the budget item allocated to them, the mutuals will be able to meet the date provided.

Social security contributions

The social security contributions corresponding to the days between 14 and 31 March will be returned in the second half of May. For self-employed workers with a recognized Cessation of Activity benefit.

The April contributions that could be charged to self-employed workers because the benefit was recognized by the mutual insurance companies after the TGSS had sent the information to the financial institutions for the charge to the account will be returned automatically in June.

These contributions will be returned ex officio and therefore no application is required. The amount will be paid into the bank account where the charge was made.

As the mutual companies are reporting, for self-employed workers who have applied for Extraordinary Termination with a favourable result, the service will be automatically extended until the end of the alarm state. In other words, they do not have to make a new request.

For Extraordinary Termination requests whose turnover drops by more than 75% during the month of April, the request will be made in May. Since the regulations indicate that the reduction in invoicing by that percentage must have taken place in the month immediately prior to the presentation of the application.