November assistance and new start assistance for solo self-employed

In view of the dynamic occurrence of infection, the federal government and the states have decided on measures to break the wave of infection. For certain industries, this includes temporary closures. With the extraordinary economic aid, the solo self-employed are now also being supported.

Many solo self-employed people are waiting for this information, as they have so far received mostly nothing or very little help in the form of bridging aid, as they have few fixed costs. The economic aid is paid out as a one-off lump sum. The affected persons are to be helped simply and unbureaucratically. In order to keep the procedure simple, these costs are approximated via the comparative turnover in the previous year.

  • How is solo independent ones helped, which cannot make fixed costs valid
  • Which self-employed persons qualify for the start-up assistance?


November assistance and new start assistance for solo self-employed


How are solo self-employed people who cannot claim fixed costs helped?

Many solo self-employed persons – for example, many artists – have comparatively low fixed operating costs within the scope of their activities, for example in the cultural and event sector, but are often particularly affected by the consequences of the pandemic. In order to provide better support for the self-employed, the current reimbursement of fixed costs is supplemented by a one-time flat-rate operating fee. A start-up aid for solo self-employed persons will be introduced as part of the bridging aid. This flat-rate operating cost allowance can only be applied for by those who do not claim any other costs under the bridging assistance III. The operating lump sum is designed as a one-time operating grant and is intended to support those who cannot claim eligible costs but have to accept a severe loss of turnover due to corona-related restrictions.


Which self-employed persons qualify for the start-up assistance?

The one-time operating cost flat rate is aimed at solo self-employed persons who have earned at least 51 percent of their income from their self-employment during the reference period (normally the year 2019).

The full operating cost flat rate is granted if the revenue of the solo self-employed person has decreased by more than 50 percent during the seven-month period from December 2020 to June 2021 compared to a seven-month reference turnover in 2019.


All answers to the questions with extensive details on

  • How is the reference turnover calculated?
  • Does the restart aid have to be paid back if the turnover is higher than initially expected?
  • Who controls the actual sales?
  • When can the start-up assistance be applied for?
  • Is the start-up assistance credited against the benefits of the basic provision?

can be found under:
No­vem­ber­hil­fe und Neu­start­hil­fe für So­lo­selbst­stän­di­ge
(November assistance and new start assistance for solo self-employed)


In detail, the following rules apply to the November aid so far:

Eligibility to apply
Eligible to apply are both solo self-employed persons directly affected by the temporary closures and indirectly affected companies. Self-employed persons who were forced to cease business operations on the basis of closure ordinances issued by the federal and state governments following the decision of the federal government and the states on October 28, 2020 are considered to be directly affected. Indirectly affected are all those who demonstrably and regularly generate 80% of their sales with companies directly affected by the closure measures or who act on their behalf.


Funding amount
Under the November aid scheme, grants will be awarded at a rate of 75% of average weekly sales in November 2019 per week of closures. As an alternative to the weekly sales in November 2019, solo self-employed persons can use the average weekly sales in 2019 as a basis for comparison. For eligible applicants who started business after October 31, 2019, the average weekly sales in October 2020 or the average weekly sales since foundation can be chosen as comparative sales.


Advance payments
A quick start of the payout is vital for the survival of many solo self-employed persons. Therefore there are installments for the November assistance. The application is possible from the last week of November. The payments on account should also start in November. Solo self-employed persons will receive an advance payment of up to 5,000 euros. The procedure for the regular payment of the November aid will be prepared and finalized in parallel so that it can be started immediately after the installments.


Crediting of benefits
Other state benefits paid for the November period will be counted towards the November allowance. This applies in particular to benefits such as bridging assistance or short-time work benefits.


Sales crediting
If sales are generated in November despite the basic closure, these are not taken into account up to an amount of 25% of the comparative sales. Sales exceeding this amount will be credited accordingly.


Submission of application
Applications can be submitted via the nationwide IT platform of the bridging assistance. For solo self-employed persons who do not apply for more than 5,000 euros in funding, the obligation to apply for funding through a tax advisor or auditor does not apply. They are – with special identification obligations – directly entitled to apply for funding.
Applications can probably be submitted from 25.11.2020 onwards.

We urgently advise you to apply for and use this November grant.

We will be happy to support you in this and check whether you are eligible to apply. We will also answer all your questions that arise in this context. Please get in touch with us.

Until then, all the best & stay healthy!


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Questions?

Klaus Nützl

Bachelor of Arts (B.A.)
Alexander Ruck
Unternehmensberater

Service-Phone
+ 49 89 547143
or by e-mail
a.ruck@acconsis.de