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The German Federal Government plans bridging aid III and re-start aid
1. Dezember 2020
The Federal Government will probably extend the bridging aid into a third stage until the end of June 2021. In addition, there will be a new aid package for solo self-employed persons called re-start aid. This was recently published by Ministers Olaf Scholz and Peter Altmaier.
The bridging aid will be extended until the end of June 2021 and will be called Bridging Aid III
The bridging aid aims to support companies, solo self-employed persons and freelancers. On our blog you will find all the essential information about the bridging aid and the typical application pitfalls. The current phase II bridging aid expires at the end of December 2020 and the deadline for applications for the months September to December 2020 is 31.12.2020.
However, it is planned to initiate a further phase. In Phase III the aid will be extended from January 2021 till June 2021. The details will be announced shortly. We will keep you informed about the extensions and improvements here too.
The German Federal Government plans bridging aid III and re-start aid – Will there be improvements?
These aspects are to be adapted and improved as part of bridging aid III:
Tax effectiveness of maintenance and modernisation expenditure
Tax effectiveness of depreciation
Bridging Aid III is to increase the amount of operating cost reimbursement from a maximum of 50.000 euros per month to 200.000 euros per month.
The re-start aid for solo self-employed persons from the arts and cultural sector works as follows:
The re-start aid is a flat-rate operating cost allowance which applies to solo self-employed persons who are unable to claim fixed costs under the bridging aid III. It amounts to 25% of a reference turnover calculated over seven months. The reference turnover is calculated based on the complete annual turnover in 2019, stripped down to seven months. Special rules apply for services, which started after 1 October 2019.
The re-start aid is limited to EUR 5,000. It is important that applicants have generated at least 51 percent of their income through self-employment in the reference period 2019. As an earmarked benefit, the re-start aid is not credited against the basic income support or similar benefits.
As of now, the re-start aid will be paid upfront. The aid will cover the period from December 2020 to June 2021.
In order to combat fraud, follow-up checks will be carried out similar to those for other types of aid. Any aid overpayment is to be repaid, depending on the difference between the amount of aid received and the reference turnover.
The German Federal Government plans bridging aid III and re-start aid – our evaluations
It seems that the public calls for help, especially from the arts and culture sector, have been politically perceived and translated into concrete aid measures. The advance payment is unusual and owed to the existential situation of those affected.
The re-start aid for solo self-employed persons will be included in the bridging aid III in order to provide assistance for the so-called „lone fighters“. Both aids can probably be applied for from 1 January 2021.
You can expect us to take a closer look at the two measures as well as a further evaluation in the coming days. New details will certainly continue to become known in this area as well. Of course, we will always point these out.
Do you have any further questions? Please do not hesitate to contact us.