Self-employed persons who do not declare the aid received during Covid-19 may be sanctioned
Nomo, the digital platform for the self-employed and SMEs that allows them to manage their business, finances and taxes, has launched its new guide The 2020 Income Tax Return for Self-Employed in the “New Normal”.
It is one of the essential guides to help the self-employed to file income tax easily and in the right terms in an exceptional year. The guide understands basic income concepts and highlights the importance of taxing aid received in 2020 as a result of the pandemic. Freelancers will find details of deductible expenses and tips for saving in the return. It doesn’t detail in the guide how to do the declaration step by step, what the deadlines are for this year and a visual timeline with key dates.
2020 was the year when covid-19 forced a large part of the self-employed to stop their activity. Although this situation has contributed to the crisis in many sectors and the cessation of activity has been imposed by the government as a restrictive measure, it does not exempt any self-employed worker from the obligation to file a 2020 income tax return. .
The self-employed assistance received must be imposed
The guide places particular emphasis on one of the main factors to consider in the 2020 income tax return: most of the aid received by the government as a result of covid-19 must be taxed, otherwise it could be subject to tax. a sanction. There is one exception which, as it is well included in the grant bases, is free to pay taxes.
In 2020 and due to the pandemic, the government has promoted several measures to ease the economic situation. The assistance came from termination benefits; financial assistance for the self-employed who see their income drop drastically or also for the self-employed with seasonal activities, among others. These grants are not non-refundable but must be declared during the next revenue campaign which starts on April 7th.
Nomo’s guide wants to help freelancers deal with tax filing in an unprecedented year in which public administration backing tried to stop the blow of a potential economic crisis.
When filing income tax, it should be taken into account that each type of assistance provided during Covid-19 is taxed in a different way. For example, reimbursements for self-employment costs that have been made cannot be considered an expense; Assistance with the cessation of activity will be taxed as income from work as well as any subsidies received, or if a self-employed person has benefited from a tax holiday to defer tax debts, if these have not been returned in four months, they will have to pay the interest each month.
On the contrary, if an ICO loan has been requested, it will not be taxed in the 2020 tax return because, since it must be returned, it is not considered income. Instead, the expenses related to this loan, such as interest or opening and incorporation fees, can be deducted.
The digitization of business management, the key to revenue presentation
The pandemic has accelerated the digitization of business management of any autonomous and more with the commitment of the tax administration to carry out the procedure digitally. Digitization of all the paperwork of the company is essential today to present the rent in a simpler way. Nomo offers all the tools and services for freelancers and SMEs to digitize finance, accounting, tax, management online and can further streamline this process by presenting it with them. The platform allows you to scan expenses and invoices with a photo, create and send quotes and invoices, obtain a forecast of taxes to be paid, link the bank account in 10 seconds, reconcile movements with invoices, download accounting books, anticipate the collection of invoices and obtain liquidity. In addition, Nomo offers a digital management service with a manager specializing in freelancers and SMEs to whom you can make unlimited requests and to whom to declare your taxes at the end of the quarter.
Consolidation of the telematics process and automatic logbooks
Para la Renta de 2019 la Agencia Tributaria estren la plataforma Renta Web, en sustitucin del Programa PADRE, un system gil e intuitivo con el que se puede solicitar, modificar y confirmar el borrador, incluso si es la primera vez que se realiza la declaracin de the annuity. Renta’s website can be accessed from the website of the tax administration with the usual identity verification systems (Cl @ ve PIN code, electronic certificate or DNI).
With the emergence of virtual procedures in 2020, Renta Web is consolidated as the fastest and most agile way to report. The platform has integrated new features, the most relevant of this year is the automatic import of registration registers, for those who are obliged to do so, simplifying this part of the procedure.
Rental 2020: from April 7 to June 30
The start of the campaign will be April 7 and the last day to present the income statement, June 30 and can be done electronically, by phone or in person, each modality within its respective deadlines. The Tax Agency encourages all modalities without face to face.