If you’re new to self-employment, your ACC invoice may be the first time you realise you have personal injury cover. Information about why you have been invoiced and other frequently asked questions are given here.
If my own company employs me, am I self-employed?
If you own shares in a ‘close’ company that employs you then you are considered a shareholder-employee. As a shareholder-employee you are considered an employee of the company, and are treated by ACC as an employee.
Generally, your company will pay ACC business levies, rather than you paying self-employed levies.
I’m not self-employed and I’ve been paying tax – why have I got an ACC invoice?
If you pay withholding payments (schedular payments) your employer will withhold some of your income and pay this to Inland Revenue. Unlike PAYE, no ACC levies are paid from withholding payments.
If you are paid through withholding tax then you are treated like a self-employed person. You will need to pay your levies to ACC directly. You will receive an invoice after Inland Revenue lets us know that you have been paid through withholding tax.
I am a sharemilker – will I get an ACC invoice?
Sharemilkers are classified as self-employed if they operate under a standard sharemilking agreement. This applies whether you work on a 50/50 basis or less.
As a self-employed person you will receive an ACC invoice after your self-employed tax return is submitted.
I have been self-employed for ages – why have I just got an invoice now?
Your first ACC invoice is sent out a few months after you submit your first IR3 tax return to Inland Revenue. Depending on when you began self-employment, it may be over a year before you receive your first ACC invoice. You are automatically covered by ACC CoverPlus. But you won’t be billed for it until after we receive your liable earnings and Business Industry Description Code from Inland Revenue.
Where did ACC get my details from?
Inland Revenue sends us details from your IR3 tax return each year. We use your Business Industry Description Code from your IR3 tax return to determine your ACC levies.
Why have I received two invoices?
ACC levies are normally paid in advance, but in your first year of self-employment you will not receive an invoice until after you file your first IR3 tax return with Inland Revenue. As we cannot invoice you until after we receive your details from Inland Revenue you may initially receive two ACC invoices:
- one invoice for last year’s levies (in arrears), for your first year or part year in self-employment
- one invoice for next year’s levies (in advance), for your second year in self-employment.
After your first year you should typically only receive one invoice each year.
What help can I get if I am injured?
ACC can help with travel and medical bills, expenses, and lost income while you recover from an injury. The medical practitioner who treats you will submit your ACC claim.
If you need time off work to recover from an injury, we can help with compensation for your loss of earnings. The amount of lost earnings compensation we pay depends on your individual circumstances. The amount you receive each week depends on:
- the type of cover you have with ACC
- the amount of income you earn.
To find out more, see:
Self-employed: What happens if I get injured?
Lost earnings compensation: New to self-employment.
Related legislation
Accident Compensation (AC) Act 2001: Part 6 Management of the scheme.
Last updated: 31 January 2009