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What Is to Be Up to Date With Payments?

Social SecurityTax Agency (Hacienda)

up to date with payments

If you are self-employed, at least once, they will have asked you for “the certificate of being up to date with payments”. And indeed, you have gone to Google to see what this means and where to obtain that certificate.

In today’s article, we will see what it means to be up to date with the Treasury and Social Security payments. Also, we will see how to obtain the certificate and why we are interested in requesting it from our collaborators and providers.

What is to be up to date with Social Security payments?

The certificate of being up to date with Social Security payments indicates that you have no debts contracted with this administration. And it is that not everyone can contract debts with Social Security. Only those obliged to pay contributions can do so. That is the self-employed or employers who pay contributions to their workers.

What is the certificate of being up to date with Social Security payments for?

Typically they request it for specific procedures with the administrations, but also in the following cases:

  • When you want to buy a car, and the bank asks for a guarantee;
  • Suppose you are going to sign a mortgage. In that case, the certificate of being up to date with payments certifies your solvency before the bank. You give them more guarantees that you can pay your debts.
  • Between business people or professionals. It happens more and more that customers ask for a certificate of being up to date with payment to work with a specific provider.
  • To request a deferral of payment of contributions to Social Security. If you have debts, Social Security will not give you the option to defer these payments because you have not previously shown that you can pay.

How valid is the certificate of being up to date with Social Security payments?

In general, they are valid for 6 months. But of course, if you want to request a bonus or participate in a contest with some administration, they will ask you for one that is as up-to-date as possible.

How do I obtain the certificate of being up to date with Social Security payments?

That is very easy. Follow the tutorial we have created on staying up to date with Social Security payments. You can no longer only access with a digital certificate but also with Cl@ve Permanente, Cl@ve PIN, Via SMS, electronic DNI or EU Login. They give us more and more facilities.

What is to be up to date with payments in the Treasury?

This certificate is called “Being up to date with tax obligations”. You can see our tutorial on how to obtain it at this link (right now in Spanish).

With this document, you certify that you are up to date with your tax obligations, that is, with tax payments to the Tax Agency.

How do I know that the certificate I have been given is authentic and valid?

Imagine that you ask a client for this certificate, and they send it to you. How can you be sure that this document is still valid and authentic?

You will see its issue date in the document, but you will also see a “Secure Verification Code”. And it is that with this CSV, you can access the Electronic Office of the Treasury and search for “Document check using the secure verification code”. If the CSV does not exist or is invalid, the system will notify you immediately.

How valid is a certificate of being up to date with tax obligations?

In general, the validity is 12 months. If you are self-employed, it is normal for you to pay taxes every quarter. Therefore, in these cases, the certificate’s validity is 3 months from the date of issue. It is understood that your payment/non-payment situation changes as you pay your quarterly taxes.

Why do clients ask me for a payment certificate from Social Security or the Treasury?

It has happened to more than one of them that a company hires their services. As a condition of continuing with the assignment, they ask for a certificate that they are up to date with their payments. And you will ask, but what does it matter if I pay my self-employment fee or my taxes or not? What matters to them is whether I do the work or not, and I’ll get paid when I deliver it, right?

Two reasons

I must tell you that it makes much sense that they ask you for this certificate. Mainly I will highlight two reasons:

  • The first is very obvious. If the client asks you for a job in, say, a period of 2 months and now it happens that you have debts that you cannot pay, so you cannot continue being self-employed and you unregister. Who will be in charge of this work that is already agreed? Yes, the client can start looking for another. Still, we already know that this requires invested time that usually an entrepreneur does not have.
  • The second reason is that the payment is complicated. And it is that if you have debts when your client is going to pay you, they may have received a notification from the Treasury so that they do not pay you, but instead retain the money and enter it automatically in the Tax Agency. This way, the client actually pays you, but it all goes to pay off your debts. You get angry with this client and with the Treasury. On top of that, this whole situation makes him lose valuable time and writings that his tax advisors must prepare so that the Treasury does not sanction him for not paying the amounts. Nobody wants complications, and one way to avoid them is to ask for a certificate of being up to date with payments.

Our advice is that when you start working with a new supplier, ask for these two certificates. And the same is the other way around: when a new client hires you, we recommend that you give them these documents in advance or at least ask them if they need them. Obtaining them is a matter of several clicks and saves valuable time.

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