Corona-Überbrückungshilfe jetzt beantragen
The period for bridging aid in the event of a loss of turnover due to corona ends on 31 August. Examination and application by tax consultants
If your company or you as a freelancer, solo self-employed etc. have got into a predicament or even an emergency situation due to the Corona pandemic, you should now apply for bridging aid for small and medium-sized enterprises (SMEs). The application period for the aid provided for in the 25 billion euro economic stimulus and crisis management package of the Federal Government ends on 30.9.2020. The aid can only be applied for by a tax consultant or auditor. I would be pleased to support you.
What is behind the aid?
The German government wants to help companies whose turnover has dropped significantly due to the corona epidemic. Although there is no restriction to certain industries, the focus is on "particularly affected industries", as stated in the government's key issues paper. These are mainly the companies that have got into an emergency situation due to the corona-related closures, for example event agencies, restaurants, hotels, clubs, travel agencies. But also solo self-employed persons, freelancers and non-profit organisations can benefit from the Corona bridging aid. So please check your eligibility. The support is granted for three months from the date of application.
What is the difference between corona bridging aid and emergency aid?
In the case of bridging aid for Corona-related failures, you may be able to obtain a significantly higher amount of support than with immediate aid. Up to 150,000 euros of your fixed operating costs can be reimbursed.
However, the application hurdles are also much higher. If the immediate aid - as its name suggests - was paid out immediately and without prior verification, you must provide evidence of loss of sales for the bridging aid. However, it is not enough to prove your fixed costs and losses yourself, you must have them confirmed by a tax consultant or an auditor. I would be happy to do this for you.
Under what conditions do you receive the bridging allowance?
If you have been or are forced to partially or completely cease your business activities due to the Corona pandemic, you can apply for it through a tax consultant (or auditor). To do so, you must have lost at least 60% of your turnover in April and May 2020. If this is met, you can apply for the subsidy for up to three months. The support will be granted if your turnover has fallen by at least 40% in at least one of these months. You can apply for the subsidy for any continuous period of three months between June and October. If your company was founded after April 2019, November and December 2019 will be used as the reference period. However, your company must not have been in difficulty on 31 December 2019 in order to qualify for support.
What will you be reimbursed by the Corona bridging grant?
You will receive support exclusively for your fixed operating costs, such as rent, interest on loans, leasing instalments, personnel costs, etc. Your living costs are not covered by the bridging allowance. Contracts for which fixed operating costs are incurred must have existed before 31 March. If, for example, you bought a car in April and finance it, you will not be paid anything.
The scale for the reimbursement of fixed operating costs under the bridging allowance is as follows:
- Sales decrease < 40%: No reimbursement
Decline in sales between 40% and 50%: Reimbursement max. 40%
Decline in sales between 50% and 70%: Reimbursement max. 50%
Sales decline >70%: Refund max. 80%
Companies with max. 5 employees: reimbursement max. 9,000 euros*.
Companies with max. 10 employees: reimbursement max. 15,000 Euro*.
Maximum reimbursement amount per company: EUR 150 000
Overpayments are to be repaid
* These amounts should only be exceeded in exceptional and duly justified cases
How can you apply for the bridging allowance?
The application can only be made online, by a tax consultant or auditor. The reason for this is the mandatory examination of the actual decline in turnover. I would be happy to take over the application process for you. I will calculate your exact turnover and check which costs are fixed and which are variable. Only with the knowledge of the exact figures your application has a chance of success. I will also assist you in calculating the turnover after a further three months and inform the responsible office.
What's the process?
When applying for the Corona bridging allowance, I first estimate your sales in April/May 2020 on the basis of your financial accounting and give a forecast of your fixed operating costs during the three funding months. If the conditions are met, I will apply for the subsidy online with the corresponding proofs. After three months, I will also check the actual sales during the funding period and submit this to the responsible office. By the way: The costs for the services of the tax consultant are also fixed operating costs and therefore eligible for funding.
Please contact me if the conditions for the bridging subsidy are met. I look forward to hearing from you.