FREQUENTLY ASKED QUESTIONS ON LABOR LAW SECOND SECTION.

1.- I COLLECT UNEMPLOYMENT AND WANT TO START A BUSINESS, WHAT EXPENSES CAN I CALL AS NECESSARY INVESTMENT TO CAPITALIZE THE BENEFIT?

If you want to capitalize the unemployment benefit to start a business, an investment is understood to be any expense you make to acquire assets or rights that make up the business assets as part of the asset (for example, a property, machinery or computer equipment, furniture, merchandise, leasing, etc…) and that are necessary for the start-up of the activity.

You can allocate the capitalized benefit to the expenses to start the business, as well as to the payment of fees and taxes.
You can also allocate up to 15% of the amount of the capitalized benefit to the payment of specific advisory, training and information services related to the activity you are going to undertake.

In addition, the expected expenses during the first three months of operation are considered an investment: tax charges, rent, conditioning of the premises, etc.

2.- DOES IT NEED TO JUSTIFY THE INVESTMENT OF THE SINGLE PAYMENT MONEY? DO I HAVE TO RETURN IT IF I DO NOT JUSTIFY IT?

Once you have received the amount of the capitalization, within a month you must start the activity and deliver the documentation that justifies that you have invested the money in said activity. You must allocate the amount you have received to the planned activity, according to what appears in the project report that is part of the file.

In the event that the activity that you have started is different from the one that was included in the application and report, but conforms to the provisions of the applicable regulations, you must submit a new report and the complementary documentation that is necessary and that indicates the Public State Employment Service (SEPE).

There can be three possibilities:

1.- That the new activity meets the legal requirements, the project is considered viable and the amount required for its start-up is adjusted to that initially granted. In this case, the recognized right is maintained.

2.- That the new activity meets the legal requirements and the project is considered viable, but the amount granted does not adapt to the new report. In this case, the State Public Employment Service will proceed to issue a new resolution adjusting the recognized amount to the new project, and if there are differences between the two amounts, it will claim the applicable undue charges.

3.- That you do not meet the legal requirements, nor is the new project considered viable. In this case, the State Public Employment Service will proceed to claim all the amount paid as a single payment.

We will proceed to claim the undue charge for the total capitalized liquid amount that would have been paid in the following cases:

If you do not start the activity and do not sufficiently justify the reason.

If you do not allocate the amount granted to your incorporation as a partner or as a worker of a cooperative or labor company.

If you do not allocate the amount to carry out the activity on your own.

If you do not apply or divert the unemployment benefit for purposes other than the activity that is the object of the capitalization, it may be considered a very serious offense.

This is sanctioned with the loss of the unemployment benefit and, furthermore, with the exclusion of the right to receive any economic benefit, and, where appropriate, employment promotion aid for one year.

SOURCE: Frequently Asked Questions section of the website https://www.sepe.es