How to defer payments to the Administration if you are autonomous
November 8, 2018
Many freelancers have always looked with envy at the ability of large companies to defer payments to the Administration. Many lose their sleep if the management of the treasury fails and liquidity is scarce when the key dates to pay a due date or pay the commitments with the Treasury arrive.
Now, that possibility of negotiation is on the table and can mean the difference between a company breaking or that can overcome a bad patch.
It is worth remembering that with just one day’s delay in the payment of any commitment to Social Security this body applies a 20% surcharge on the amount to be paid. If in 15 days this commitment is not complied with, an administrative claim procedure is initiated that in the worst of cases may result in the seizure of the necessary assets to settle the debt.
To avoid this risk, small entrepreneurs and self-employed persons with liquidity difficulties can defer payments to the Administration, up to five years. If the debt is less than 30,000 euros, the process can be carried out without providing any guarantee.
The first public body that allows this management is Social Security with most of its commitments such as fees, surcharges or pending penalties when these exceed twice the minimum interprofessional salary. Of course, there are exceptions. Can not delay in any case the fees that cover the coverage for work accidents or those of the workers in charge.
To qualify for this possibility there is a prerequisite to comply and is to be up to date on all payments and request the postponement before the end of the period of voluntary payment of these commitments and, of course, before the Treasury initiates a procedure legal to claim your payment that could end in a lien.
The procedure to defer payments to the Administration, in case of being autonomous, is not difficult. However, as a taxpayer, the self-employed worker should be clear that he is responsible for complying with all the requirements and deadlines and not expect any communication from the Administration.
Postponement of payment to Social Security
For example, you will need to submit the official deferment request form known as TC17 / 10, which can be downloaded from the Social Security website .
The management to defer payments to the Social Security should be based on a whole rosary of official forms :
- TC17 / 11.- Model of recognition of debts with the Social Security, which also has its own official model, and with a proposed amortization schedule for the delayed debt.
- Settlement TC can not be postponed
- Deferrable settlement TC
- TC2 with the relation of the workers of the company
- Depreciation document and deferred debt calendar.
In addition, the Administration may request at any time any other requirement it deems necessary.
In case of having a digital certificate the process can be done through the electronic headquarters of the Social Security. Otherwise, the management must be in person at the Social Security office that belongs to him depending on the place of residence or in the Provincial Directorate of the General Treasury of the Social Security.
Once all these requirements have been presented, the procedure establishes a period of 10 days to correct errors or complete the application and another of 3 months for the Administration to accept or reject the application.
Payments for VAT and IRPF can also be postponed
After the uproar caused in December 2017 with a Royal Decree published on the second day of that month that sought to avoid the postponement of debts with the Treasury, the Tax Agency itself made it clear on January 13, 2018 that the self-employed can postpone their commitments tax both VAT and income tax to a maximum of 30,000 euros, without providing guarantees, for one year. Only if the taxpayer shows that he has not collected the invoices for which he has to pay the VAT, the delay can be extended up to 36 months.
In these cases, the application procedure to postpone payments to the Administration, specifically with the Treasury, is very similar to the one that must be followed with the payment. Both the model 303, self-assessment of VAT, and 130, with which quarterly payment of the IRPF installment payment, have an option to recognize a debt and postpone it directly.