You may have recently received a letter from ACC advising you that your business has been issued a credit.
The letters are legitimate and are the result of business customers being incorrectly charged levies between 2002 and 2017.
If you were in your first year of self-employment between
2002 and 2017, or paid provisional ACC levies after ceasing trading, ACC may
owe you a refund.
ACC says it expects to refund about $100 million to
approximately 300,000 businesses and if you received one of their letters, this
Sort of feels like winning a minor prize in Lotto.
Businesses can go to the ACC website to check if they are
due a refund. You will need your ACC account number or IRD number.
In 2018, the incorrect charges were discovered when new
regulations were drafted, and it was revealed “that since 2002 the regulations
have been drafted in a way that doesn’t provide for the levying of first-year
self-employed to occur.”
ACC will refund all first-year levies collected since 2002
from self-employed customers, who worked fulltime, that is, averaged more than
30 hours per week across the financial year.
They will also refund about $64 million to around 200,000
businesses who paid provisional invoices during the same period, in situations
where they were not required to do so.
They are also paying interest but did not say how much it
will be in total.