Faced with the economic difficulties generated by the health crisis, the Government launched various aids to alleviate the economic impact of coronavirus on the self-employed and SMEs,which many of them were and are going through an unsustainable situation for their activities.
Measures that were a relief for self-employed and small businesses,which during the worst months of the health crisis were able to obtain some liquidity.
Among the different measures taken, one of them was the possibility of defer payment of first-quarter self-pays,such as VAT or corporation tax, for those self-employed and companies with an annual turnover of less than EUR 600,000, as well as the deferment of the payment of fees to Social Security in May, June and July.
According to the Treasury, 638,652 self-employed persons and SMEs would have benefited from these government aid during the coronavirus.
In addition to extending the voluntary period for submitting these self-conditions until 20 May, the Government made it possible to defer and pay taxes for the first quarter six months later,i.e. instead of May, in November.
On the other hand, there was a six-month moratorium on paying the corresponding Social Security fees.
And while most self-employed persons and SMEs have not yet recovered, and are far from recovering, these aids have ended and must meet their deferred obligations.
In this way, those self-employed and SMEs who took the deferment of the payments of the self-processing for the first quarter due to the coronavirus, must pay the amounts deferred in November, in particular, they will have until 20 November 2020.
While those who applied for the moratoriumon social security fees will have to pay the deferred fees from November, and the amount corresponding to the deferred fees will be added to their usual quota. Since November they are already paying the fee again.
Until November 20 to refund taxes and fees deferred without penalty
Until November 20th to pay taxes deferred without penalty. On that day they will receive a charge to the Tax Agency account for the total amount of the deferred debt.
As explained from the Administration, the default interest is 3.75%,and will vary depending on the days between the end of the voluntary period, may 20, and the expiration time. That is, interest will be higher or lower depending on whether you pay in the fifth or sixth month.
On the other hand, the six-month moratoriumon the payment of fees to Social Security ended in August, as this deferment of contributions was only available for the months of May, June and July. So from August the self-employed and SMEs paid their dues normally.
In addition, from November to their usual quotas are added the refund of the deferred quotes. An amount that will be around 2,000 euros.
This means that those who requested the moratorium in May will have to start paying in November; while those who applied for it in June must do so in December and, in July, in January.
In short, November is the last month to pay taxes and fees deferred by the coronavirus. So if you applied for the deferment of taxes for the first quarter, or the moratorium on Social Security fees in May, June and July, please note that in November you will have to face the deferred amounts. If you have any questions about this, please contact the AYCE Laborytaxteam of tax advisors without any commitment.
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