The three great essentials to achieve anything worthwhile are, first, hard work; second, stick-to-itiveness; third, common sense. (Thomas Edison)

ACC

ACC is not a major activity for most of our clients - but we should all make sure we are sending our money wisely. Your insurance advisor can advise you of the best insurance options for you (ACC is insurance rather than tax), although they may favour schemes which favour them.

 

ACC have at last introduced an on-line system, and access for accountants is planned.

 

ACC codes

 

When your accountant wants to know your ACC code, they're not just being nosey. If we don't include the correct code on your tax return, you'll be billed by ACC at the wrong rate. A multi-branch organisation was using different rates for different branches even though they all do the same work. It transpired that some branches had been overpaying ACC for years - they got a refund of over $15,000. So it pays to get it right. (Note that you can usually go back only four years, so don't leave it.)

 

For a full list of codes, check out www.businessdescription.co.nz/.

 

ACC CoverPlus Extra

 

This is an option for almost everyone - but is particularly useful for those whose annual income fluctuates significantly. It can also be useful where a partner is dedicated to say admin work rather than some of the more expensive options. With standard ACC they just get billed at the same rate as everyone else in the firm. You can also do things like put them on a lower level of cover if you deem that valid. On the other hand, you don't have to have proof of earnings before submitting a claim so it may be useful for others.

 

If you're receiving Super, your ACC entitlement may be limited - but by default you'll be billed as though you're entitled to claim ACC as normal. You may in fact be better off going on to ACC CoverPlus Extra at the minimum level, and arranging private insurance cover as an alternative. You should talk to your insurance advisor about this.

 

Cover for non-work injuries

 

Earnings not subject to PAYE (e.g. sole traders, shareholder-employees, etc) will show this item in their annual bill. It's equivalent to the ACC paid with PAYE - and is charged at the same rate regardless of what ACC code you have. You'll see that GST is added to other items but GST on this item is not claimable, and cover for non-work injuries is not deductible. It should be coded to your shareholder current account or equivalent. This is often overlooked - but IRD is aware of it and during investigations often look at it to see if it has been treated as a private expense.

 

Contact us

Email results@businessacademy.nz

 

Skype PhilANZ

 

Phone 04 920 0911

 

P.O. Box 30-545, Lower Hutt 5040

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