The agency does not use the reduced net income from tax, but rather the actual monthly income. An error in this calculation can cost the aid.
The State Public Employment Service (SEPE) has reminded a key point for self-employed individuals applying for unemployment benefits: to grant the aid, it does not look at the reduced net income shown on the tax return, but at the actual income generated by the self-employed person each month. The difference is substantial and can determine whether one is entitled to the benefit or not.
What income does SEPE consider and how it affects the family unit
When a self-employed person requests the subsidy, SEPE examines the income of the entire household: the applicant, their spouse or partner, and children under 26 or older with disabilities who are financially dependent. If there is someone in that family unit who is self-employed, the way their contribution is calculated is not what many expect.
The agency emphasises that it takes the monthly net income obtained, that is, the difference between the self-employed person's income in that month and the necessary expenses to obtain it, without applying any additional tax reduction. The reduced net income shown in the corresponding box of the tax return is not valid, because that figure includes adjustments (reductions of 5%, 7%, or 15%) that SEPE does not recognise for the purpose of the subsidy.
In translation: SEPE wants to know how much money comes into the household month by month, not the reduced taxable base you declare to the tax authorities. If the self-employed spouse had gross income of 1,200 euros in a month and deductible expenses of 400, the monthly net income that is computed is 800 euros. And if that amount exceeds the income limit of the family unit (which is usually around 75% of the minimum interprofessional wage per member), the aid is denied.
The income that counts is not what you declare in your tax return after applying reductions, but the money that comes in each month.
Required documentation and the trap of confusing figures
To justify the income of the self-employed person, SEPE requires the declaration of the fractional payment for the immediately preceding period prior to the application. So, it is necessary to present model 130 if the self-employed person is taxed under direct estimation, or model 131 if they are under modules (objective estimation).
SEPE reminds that if that documentation cannot be obtained, it is sufficient to submit the last tax return filed by the self-employed person in the family unit. However, that declaration must correspond to the last tax period for which it has been submitted, not to a closed year from two years ago.
SEPE's clarification is not new, but it is one of the most common pitfalls for self-employed individuals when applying for the subsidy. Many review the box for reduced net income from the previous year's tax return and believe that this is the figure that will be used, when in reality SEPE needs the raw data from each month: what the business generates after expenses, but before tax regulations cut the amount for tax calculation.
The oversight can be costly. If the household exceeds the income limit by a few euros due to having calculated with the reduced annual figures, the subsidy is denied and one must wait for the next quarter, review the economic situation, and resubmit all the documentation. Time is running out and unemployment does not wait.
The practical lesson: before submitting the application, calculate the actual monthly net income of the self-employed person in your household by taking the income and expenses from the last completed month, without tax adjustments. And if that number is close to the limit, consult with a manager before taking the step.
You may also like
