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Insight, news and updates from Alliott NZ Chartered Accountants, Auckland New Zealand. The views expressed here are the views of the author and should be discussed in further detail should an article be relevant to your individual circumstances.

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ACC and the Self-Employed

Written by Vanessa Williams on May 28th, 2018.      0 comments

Self-employed? 

Consider a different ACC structure!

accident-444Many self-employed people have fluctuating incomes or have taxable income short of what they generate.

However, if you are on one of the default ACC plans, this could be disastrous if an accident ‘takes you out’ as ACC would pay 80% of what can be very little or even nothing!

You have probably heard some horror stories.

ACC recognises this problem and has an alternative plan for self-employed people called CoverPlus Extra. This pays 100% of an agreed amount at application time which means no surprises at claim time. Other benefits include:

  • Not needing the ‘accounts’ to prove income at claim time
  • Ability to reduce a partner’s levy when they’re not doing the higher levied duties
  • No benefit reduction if the business still generates an income
  • No benefit reduction if getting back to work part-time

The eligibility criteria are simple but CoverPlus Extra must be applied for and that’s where we can help.

But, what about sickness?

Being unable to work because of an accident is not the whole problem. Illness (including stress) accounts for even more disability than an accident.

An appropriate personal income protection cover should sit alongside ACC and provide financial security if either injury or illness strikes. Not covering both is like insuring a house for fire but not natural events!

With CoverPlus Extra, it is possible to reduce your ACC cover to help pay for this income protection.

Changing your level of cover with ACC can have other unknown impacts such as your families’ Accidental Death entitlement so it is important that you seek financial advice.

Brett Pearce is a financial adviser with expertise in ACC and personal insurance and conducts a thorough analysis of your circumstances. This involves working closely with you and partnering with your accountant to ensure the best solution and outcomes. Please contact the Alliotts team in Auckland on 09 520 9200 for an introduction.
 

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