ACC – Upcoming changes to the way ACC CoverPlus invoices are issued for self-employed customers
If you are currently self-employed and on the basic ACC CoverPlus scheme, you will see a change in the way your invoices are issued. Up until now you have received a provisional invoice for the 2019/20 year based on your previous years’ earnings. This was then followed by a final notice once your Income Tax Return was assessed by the Inland Revenue Department (IRD) to cover any shortfall or determine an overpayment.
From the 2020 levy year, you will be charged your levies on one invoice. After the levy year has finished, the invoice will be based on your actual earnings, meaning your Income Tax Return(s) for the 31 March 2020 year will need to be assessed by the IRD first. This change should eliminate any over-charging of levies when income levels decrease. For the first year of change there will be a delay in when invoices can be issued and the invoice you receive will be for one larger amount.
If you are currently self-employed and on ACC CoverPlus Extra, there are no changes to the way ACC will invoice you. You will continue to be charged levies in advance on your agreed level of cover. It is our preference that if you are self-employed; are considered to be working full time; and your Shareholder Salaries will likely exceed $60,000pa you consider ACC CoverPlus Extra as an alternative to the basic ACC CoverPlus.
Contact our office for further information or any questions you have in relation to ACC. We also offer a service to manage all of your ACC needs, giving you the confidence you are paying the correct levies and that you will receive cover at the right level in the event of an accident.