While employees must above all find a compromise with their employer, many self-employed people (shops, hotels, restaurants, cafes, etc.) are forced to cease or temporarily reduce their professional activity following confinements. And it is inevitably their turnover and their salary that will be the first to be impacted, while they will have to continue to pay numerous charges.
The Federal government and the Regions took a series of measures during the first confinement in March and April in order to support the affected independents. But what assistance is still available?
1. Deferral of social contributions
Where to get information?
Self-employed persons affected by government measures can contact theInasti (National Social Insurance Institute for Self-Employed Workers) and their social insurance fund for any additional information. A free contact number has been set up by Inasti: 0800 12 018 (every working day from 8:30 a.m. to 12 p.m. and from 1 to 5 p.m. – Friday until 4 p.m.).
In the event of payment difficulties, the first step to take is to contact your social insurance fund, here is the list of contacts.
Any self-employed worker, regardless of their contribution category (main, complementary, etc.), who is affected by the coronavirus crisis can submit a written request to their social insurance fund for request a one-year postponement of the payment of social contributions, without any increases being taken into account and without any effect on benefits.
This measure also applies to the provisional contributions for the first, second, third and fourth quarters of 2020. But also to the regularization contributions for the 2018 quarters which are due on March 31, 2020, June 30, 2020, September 30, 2020 and as of December 31, 2020.
Concretely, these contributions must be paid during the same quarter in 2021. For example, the contribution relating to the first quarter of 2020 and the 2018 regularization contributions that are due on March 31, 2020 must be paid before March 31, 2021 and so on for each quarter (June 30, 2021; September 30, 2021; 15 December 2021).
Your request had to be submitted to your social insurance fund before December 15, 2020.
2. No surcharges for late payment
Self-employed persons who do not pay their provisional social contributions for the first, second and third quarters of 2020 before September 30, 2020, do not have to pay surcharges for this late payment.
This also applies to the late payment of the regularization contributions which had to be paid between January 1 and September 30, 2020. The increases in question are automatically canceled. This means that no specific request should be made. However, increases are due if these contributions are still not paid by December 31, 2020.
3. Reduction of provisional social contributions
It is also possible for the self-employed affected by the crisis to request a reduction in their provisional social contributions for the year 2020 if their professional income is below one of the legal thresholds.
The amount of the quarterly contributions depends on the expected income for 2020. Depending on the amount of income communicated, the contributions can be reduced to:
- 717.18 euros for a main self-employed person;
- 0 euro for an independent complementary if their income is less than 1,548.18 euros;
- 0 euros for an active pensioner if his income is less than 3,096.37 euros.
4. Exemptions from social contributions
The main self-employed and assisting spouses (including starters) can apply for exemption from social contributions in certain cases following the health crisis. A contribution exemption can be requested from your social insurance fund for:
- provisional contributions for the first, second, third and fourth quarters of 2020;
- the regularization contributions for the 2018 quarters which are due in the course of 2020.
If you wish to make a request for several quarters, Inasti recommends that you wait for receipt of the statement for the contributions for the last quarter concerned and then submit a general request for all the quarters concerned. Be careful, however, your request must be introduced within 12 months of the end of each relevant quarter.
Note that you do not constitute no pension rights for the quarters for which you have obtained an exemption from contributions. However, you have the option of adjusting these quarters thereafter within five years (with a redemption premium) so that they enter into the calculation of your pension.
5. Crisis bridge right
The new federal government recently decided to double the amounts of the crisis gateway fee following the closure of the Horeca and other sectors as part of the second confinement.
This gateway right therefore concerns sectors forced to close or dependent on a sector / company forced to close. It has been extended until January 31, 2021.
“For the self-employed, caregivers and assisting spouses who have been forced to totally or partially stop their activities following a ministerial decree taken in the context of the Covid-19 crisis, such as the manager of a bar, a nightclub, a restaurant (even if it still offers take-away meals), a night shop held to close at 10 p.m., fairgrounds, the event sector, indemnities will be doubled, at 2,583.38 euros for a single person and to 3,228.20 euros for those with family responsibilities“, explains David Clarinval, Minister for the Independents.
Note that this right can be combined with a take-away activity.
The Gateway right is further improved for starters: they only have to contribute 2 months to be able to benefit from it (instead of 4 months).
6. Support gateway right to recovery
The objective of the takeover support gateway right is to support the self-employed who had to close (totally or partially) until May 3 or later, and who then (gradually) restarted their activity with a loss of turnover or their orders of at least 10% to 2e quarter of 2020 compared to the corresponding period of 2019. This measure, which was supposed to end on October 31, was also extended until the end of the year.
It targets the mainly self-employed or who contribute as a self-employed principal and allow the granting of a financial benefit of 1,291.69 euros (isolated) or 1,614.10 euros (dependent of family).
7. Right to quarantine and custody of children
Since September, the self-employed can appeal to the classic gateway right in the event of a forced interruption in the following situations:
- if it should be quarantined and therefore must stop all activity for at least 7 consecutive days. But he cannot benefit from this right if he can work from his home or if he made a non-essential trip in a zone classified as red when he left.
- if he has to interrupt his activity for at least 7 consecutive days in order to take care of one or more child (ren) under 12 years old in quarantine (closure of a class, school, nursery or reception center ).
8. Illness and incapacity for work
Regional aid
In addition to the Federal, each Region (Walloon, Brussels, Flemish) has taken a series of measures to help the self-employed following the health crisis:
If you are self-employed and affected by Covid-19 yourself, you have the possibility of being compensated from the 1st day of illness by your mutual insurance company if the period of incapacity exceeds 7 days. In certain cases, you can also ask to be exempted from the payment of social contributions during the period of illness (“assimilation for illness”).
Since March 1 and until March 31, 2021, self-employed persons unable to work receive from their mutuality additional crisis compensation, so that the total daily amount of the replacement income linked to their incapacity for work is equal to the monthly amount, evaluated in working days, of the bridging fee (49.68 euros per day):
The mutual fund will pay the additional crisis allowance no later than January 1, 2021.
9. VAT payment plan
Self-employed workers subject to VAT and experiencing financial difficulties following the coronavirus crisis, regardless of their sector of activity, can apply a payment plan, an exemption from default interest and a remission of fines for non-payment at the FPS Finances, until December 31, 2020.
You must then be able to demonstrate your financial difficulties (drop in turnover, orders / reservations, etc.) and that these take place in the context of the coronavirus crisis.
10. Payment plan for the withholding tax
If you are a self-employed person and you encounter financial difficulties following the current crisis, you can request a payment plan, an exemption from interest on late payment and a remission of fines for non-payment of withholding tax to the SPF Finances until at December 31, 2020.
As with the VAT payment plan, you must also prove your financial difficulties and that they take place in the context of the health crisis.
11. Personal income tax payment plan
Self-employed individuals who encounter financial difficulties as a result of the health crisis can request a payment plan, an exemption from default interest and a remission of fines for non-payment of personal income tax at FPS Finances until December 31.
Here too, you have to be able to prove your financial difficulties in the context of the current crisis.
12. Postponement of payment of insurance premiums
Self-employed workers affected by the crisis can, under certain conditions, request a deferral of payment of their “non-life” insurance premiums until June 30. Those who have already submitted a request may request an extension, but the postponement cannot exceed 9 months in total.
Insurers have also offered, under certain conditions, postponement of mortgage loan repayments as well as outstanding balance and fire insurance associated with it. The period during which the request can be submitted has been extended until the end of March 2021. Here again, the total postponement cannot exceed 9 months.
In March, insurers also pledged that people covered by employer-paid pension, death, disability or hospitalization insurance would remain insured, even if they were temporarily unemployed. This warranty has been extended until March 31, 2021.
Requests for deferral of payment must be made as soon as possible with the broker or the insurance company. To benefit from this deferral, you must be a self-employed person whose activities have been or will be reduced.
No arrears of taxes or social security contributions can have been noted on the part of the applicant at 1er September 2020. Payment deferrals granted as part of the support measures linked to the coronavirus crisis are not considered as arrears.