How long do NZ sole traders need to keep their records?

New Zealand sole traders are required to keep all business records for a minimum of **7 years** from the end of the tax year in which the transaction occurred. This is set out in the Tax Administration Act 1994. Records you must keep include: - All income records (invoices, receipts, bank statements showing income) - All expense records (receipts, invoices, bank statements) - GST records (if GST-registered): tax invoices for all claims over NZ$50 - Asset register (for assets over NZ$1,000 that are being depreciated) - Vehicle logbook (if using the logbook method for vehicle claims) - Employment records (if you have employees) Records can be kept electronically. Inland Revenue accepts digital copies of paper records (such as phone photos of receipts), provided they are clear and legible. IR can audit your returns up to 4 years after filing (or longer in cases of fraud or significant under-declaration). Keeping 7 years of records provides a safety buffer.

• Minimum 7 years from end of relevant tax year
• Must keep: income invoices, expense receipts, bank statements
• GST records: tax invoices for purchases over NZ$50
• Electronic records accepted (photos of receipts are OK)
• IR audits can go back 4 years normally