Page 2 - G20 Newsletter_Vol16

Europe France
Since 2017, France has developed a plan for the
United Kingdom self-employed (non-agricultural) in the social
security system, aimed at improving the social
To alleviate the economic dilemma of self- protection of self-employed, simplifying procedures and improving
employment for the Covid-19 outbreak, the the quality of services. According to this plan, the self-employed can
UK government announced on March 26th, 2020 Self-Employment enjoy medical insurance with the same personal payment rate and
Income Support Scheme (SEISS). Starting from March 2020, reimbursement rate as corporate employees. Those who have been
80% of monthly income will be provided to the self-employed, insured for more than one year and have not arrears in premiums
with a monthly limit of 2500 pounds, tentatively for three months, and are recommended by doctors to take sick leave due to illness or
depending on the development of the pandemic. According to accidents will receive the allowance. All the self-employed must pay
statistics from the National Bureau of Statistics (ONS), more family subsidy premiums so that their families can enjoy the same
than 5 million people in the UK are self-employed, accounting for treatment as the family members of enterprise employees, including
15% of the total UK workforce. The government expects that the child care costs, housing and other benefits.
Income Support Scheme (SEISS) will cover 95% of the UK ’s self- In response to the epidemic, the French government announced on
employment. The Self-Employment Income Support Program March 30th that as part of the government assistance program, a
(SEISS) has precise requirements for applicants: they are currently 2-billion-euro Fond de Solidarite was established to provide financial
in self-employment and will continue to do so in the coming support for small and micro enterprises and the self-employed. There
year; they can provide tax payment certificates for 2018 and 2019 are some requirements for the self-employed: the income is below
(as an evidence of normal income, while avoiding the temporary 40,000 euros in 2019, the business is temporarily suspended due to
conversion to the self-employment); more than half of personal the government’s order or in severely damaged industries, and income
income comes from the self-employment; the average annual between February 21st and March 31st is 70% lower than the same
income in 2016-2019 is less than 50,000 pounds (to avoid high- period of last year. 1500 euros per month can be applied continuously
income self-employed from occupying this benefit). This plan does for three months through the Fond de Solidarite.
not apply to individuals who conduct personal operations with a Germany
company structure. The UK Taxation and Customs Administration
(HMRC) will calculate the average monthly income by integrating On March 27th, the German government
the taxable income of the self-employed in the past three years and introduced an aid program to alleviate the
will contact the qualified personnel to report the specific amount of impact of the outbreak of Covid-19. One of the
the subsidy. It is estimated that the cash subsidy will not be into the main goals of the assistance program is to help the self-employed
and small businesses overcome difficulties, including three forms of
applicant’s bank account until the end of June.
support: short-term allowances which the applications need to be
Those who have been engaged in self-employment for less than verified by the Federal Labor Office; financial aid, the self-employed
one year cannot enjoy this subsidy. They can apply for a “Universal can directly contact the tax agency or representative for access;
Credit” for temporarily unemployed and low-income people, and liquidity assistance, apply to the commercial partners of the German
receive a basic living allowance of around £ 400 per month. The Bank for Reconstruction and Credit, and the official partners are found
income tax before June-July 2020 can be deferred to January 2021 in the region on the KfW website. The assistance plan specifically
for the self-employed. If the spouse of a self-employee does not sets up a fund of 50 billion euros for small businesses and the self-
have the income and there are more than two children at home, employed, and according to the specific losses, the self-employed can
living in low-rent housing, social benefits of £ 1800 per month can get the monthly subsidies up to 9000 euros for three months.
be applied. In addition, the government has launched a plan dedicated to
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supporting small enterprises and the self-employed in the cultural
Italy
industry with a total budget of 50 billion euros. Among them, the self-
On March 16th, the Italian government employed, such as art workers and professional photographers, can
announced an aid plan of 25 billion euros to receive about 9000 per month for continuously three months.
mitigate the impact of the epidemic on the EU
economy. Among them, a fund of 300 million euros was established
to help the employees and the self-employed whose businesses To reduce the impact of the Covid-19 on
were affected by the outbreak of coronavirus. They can receive a the economy, the European Commission
monthly allowance of 600 euros for three months. announced on March 13th that it had
formulated a coordinated response measure, which uses
Besides, the self-employed who lost less than more than one-third the European Globalization Adjustment Fund to support the
of the income in the first quarter can apply to defer the payment of unemployed and the self-employed with reduced income due to
the mortgage for the first house purchase until the situation gets the outbreak. The available funds are 179 million euros in 2020. In
better. At the same time, for enterprise employees and the self- the document “A European instrument for temporary Support to
employed, if they have children under the age of 12, they can apply mitigate Unemployment Risks in an Emergency (SURE) after the
for a special leave of 15 days, and the government pays 40% of outbreak of the new coronary pneumonia epidemic” announced on
their salary. April 2nd, the European Union included the self-employed who lost
their jobs in the assistance.