Bridging allowance (start-up)
The bridging allowance (hereinafter referred to as ÜG) was a state subsidy to promote business start-ups and was paid by the Employment Agency. Other state subsidies for business start-ups are the business start-up grant and the entry fee .
From August 1, 2006, this subsidy will only be paid if the subsidy was approved before that date. New permits are excluded because the measure has been replaced by the start-up grant , which can be applied for for start-ups from August 1, 2006. Founders with less than three months remaining entitlement to unemployment benefit could still apply for the old bridging allowance during a three-month transition period until October 31, 2006.
Current development
The bridging allowance and the start -up grant ( Ich-AG ) have been replaced with effect from August 1, 2006 by the new funding for the start -up grant, which can be granted for a maximum of 15 months. The only exception: If you started your start-up preparations before July 31st under the conditions of the bridging allowance, but found your company only after July 31st and are not entitled to a start-up grant solely because of insufficient residual entitlement to unemployment benefit, you can still do so until October 2006 will be funded with the previous bridging allowance.
There will be no change for ongoing measures that were approved up to and including July 2006 and the bridging allowance / start-up grant will continue to be paid until the end of the funding period.
Legal bases
The legal basis for the ÜG can be found in § 57 SGB III . The ÜG is only granted on application; the application must be submitted before starting self-employment . The application can be made both from unemployment and from an existing job to avoid unemployment (foreseeable termination by employer or already terminated).
Eligible
Employees who end or avoid unemployment by taking up self-employed, full-time employment are entitled to ÜG in order to secure their livelihood and for social security in the time after starting up a business. ÜG is provided if the employee
- in close temporal relation (maximum of 30 calendar days after the end of service) with the inclusion of self-employment or the upstream participation in a measure for their preparation allowance payments under SGB III has moved or have a right or a job has exercised, as job creation program according to SGB III has been funded, and
- has submitted a positive opinion from a competent body on the viability of starting a business; Competent bodies are in particular the chambers of industry and commerce, chambers of crafts, professional chambers, professional associations, credit institutions and tax consultants.
A multi-page business plan, which describes the business idea, the market opportunities and the risks, as well as a sales forecast for the next three years, must usually be submitted for a positive vote by the competent body.
Funded persons who have reached the age of 65 are no longer entitled to ÜG from the beginning of the following month.
Duration of funding
The ÜG is provided for a period of six months. ÜG cannot be granted as long as there are downtimes according to Sections 142 to 143a SGB III. If the requirements for a reduction in the entitlement to unemployment benefit according to Section 140 SGB III are met, the ÜG is reduced by the corresponding amount for the number of days that extend into the period of funding with the ÜG. If the prerequisites for a suspension of the entitlement during the blocking period according to Section 144 SGB III are met, the duration of the funding will be shortened according to the duration of the blocking period, taking into account the length of the blocking period that has already passed.
Exclusion from funding
Funding is excluded if 24 months have not passed since the end of an earlier start-up funding under SGB III; Compliance with this deadline can be waived for special reasons relating to the employee.
Funding is also excluded if the employee terminates his employment relationship (e.g. by giving notice or termination agreement) in order to seamlessly transition into self-employment.
Amount of funding
The ÜG is composed of an amount that the employee last received as unemployment benefit or could have received it in the event of unemployment, and the lump-sum social security contributions. The flat-rate social security contributions are determined as a percentage surcharge based on the average total social security contribution paid for recipients of unemployment benefit in the first half of the previous year . In 2006 the surcharge is 69.5% of unemployment benefit I (changes annually).
Tax treatment
The bridging allowance is a tax-free income for income tax, which (from 2003) is no longer subject to the progression proviso.
consultation
In order to approve the application, some employment agencies require participation in a start-up seminar in which the modalities of the application process and criteria for granting funding are explained in detail. In addition, tax consultants and the IHKs offer targeted advisory services for start-ups and applicants, which should be used.
