Here are the coronavirus measures that matter for every self-employed end of 2020
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With the national measures against the Coronavirus once again increasing, you may wonder whether the government has also taken new measures to help self-employed professionals during this difficult time. In addition, you probably also feel the pressure of your fiscal and accounting obligations that are lurking around the corner. In this article we will list what you need to take into account between now and the end of 2020!
The so-called “bridging right” and the regional grants are now less accessible than they were back in spring. However, there are some other support measures available for all self-employed people affected by the ongoing crisis.
If, as a result of the crisis, you find it difficult to pay your withholding tax, your VAT or your income tax, you can apply for support measures from the Federal Public Service of Finances until the end of December 2020. These measures include a payment plan, exemption from fines for late payment and a waiver of fines for non-payment. More details on the steps you can take, can be found here.
Are you still entitled to the “bridging right” and/or the regional grants?
If you are part of a sector that is obliged to close (e.g. in the artistic, cultural or events sector, for example) or that is completely dependent on one of these sectors, you can benefit from a partial or full bridging right until 31 December (and more so until the end of October). In addition, the amount of this fee is doubled.
The relance bridging right (relance overbruggingsrecht or droit-passerelle de reprise) will be extended until 31 December: in order to benefit from it, you must be able to prove that your turnover in a certain quarter has decreased by at least 10% compared to the same quarter in 2019. In that case, that means you work in a sector that has had to close down completely or partially for more than one month.
⚠️ If you have interrupted your activity for more than 7 consecutive days per month without being obliged to do so by the government, you are no longer entitled to the bridging right.
HoReCa companies (Nacebel 56,101, 56,102, 56,301, 56,309) receive regional aid according to the number of full-time employees in the company: €3000 if the number of FTEs is 0, €5000 from 1 to 4, €7000 from 5 to 9, and €9000 above.
Self-employed professionals in sectors that are not able to fully operate anymore (photography, cab-drivers, travel sector, etc.) receive more support than was initially announced in September: they receive an intervention equivalent to 30% of their turnover in the 3rd quarter if they show a decrease of 60% of their turnover in the 3rd quarter compared to 2019. In addition, the minimum intervention amount rises to €3,000 instead of €1,500. Self-employed professionals with one of the following Nacebel codes are eligible: 49310, 49,320, 49390, 56210, 56302, 59140, 74109, 74201, 74209, 77293, 77294, 77296, 77392, 79…. , 82300, 90… , 93211, 93,299.
📌 The details of the measures can be found in this press release.
Flanders announced that self-employed professionals who lose 60% of their turnover between 1 October and 15 November 2020 compared to the same period in 2019, will receive a compensation equal to 10% of their turnover for the same period in 2019.
📌 You can follow this measure (and its developments) here
What is the impact of regional & federal measures on your taxes in 2021?
The regional premiums are fully exempt from taxes. However, they will be mentioned on your tax form, so don’t be surprised if you see this premium on your tax return, if you are a natural person.
The bridging right is a form of replacement income. It is therefore also taxable as such. If you have received this bridging right, you will receive a form 281.18, which you can include in your 2020 tax return. The bridging right does not count for the calculation of your social security contributions, though!
In December 2020 there will be no advance payment of VAT
This year, you will exceptionally not have to do a mandatory VAT advance payment in December. If you make VAT returns every quarter, you won’t have to make further payments or returns in 2020!
You still have to do your advance payments on taxes
If you make advance payments for your taxes, don’t forget to pay the last instalment before 2020. The percentage that applies to the 4th instalment is higher than in other years: this is due to a decision in April to ease the burden on companies that were facing liquidity difficulties at the beginning of the crisis.
However, you do not risk a fine if you do not pay these advance payments in the first 3 years of your business
You can find all details about this and advice from one of our partner accountants here.