How long do I need to keep records?
IRD requires you to keep all business records for a minimum of 7 years from the end of the tax year they relate to.
Why 7 years?
IRD has the power to review your tax returns and request supporting records for up to 7 years after the return was filed. In certain circumstances — for example if they suspect fraud or significant errors — they can request records for an additional 3 years beyond that (10 years total).
Keeping your records for the full 7 years protects you if IRD ever queries your income, expenses, or GST claims.
What records must you keep?
You need to keep records that support everything you report to IRD, including:
Income records
- Sales invoices issued to customers
- Bank deposit records
- Cash sales records
- Any other evidence of money received
Expense records
- Receipts and supplier invoices for all business purchases
- Bank statements showing payments made
- Records of any payments made in cash
Business records
- A record of assets and liabilities (what the business owns and owes)
- Day-to-day records of all money received and spent
- Records of trading stock (if applicable)
- GST returns and supporting records (if GST-registered)
Other records
- Vehicle logbooks (if claiming car expenses using the logbook method)
- Home office calculations (floor plan, household bills)
- Depreciation schedules for business assets
- Contracts and agreements
Format — paper or digital?
You can keep records in either paper or digital format. If you store records digitally:
- The records must be accurate and complete reproductions of the originals
- They must be in New Zealand or stored with a cloud provider that has IRD approval for offshore storage
- They must be in English or Māori (unless you have specific IRD approval for another language)
- They must be accessible if IRD requests them
Photographing paper receipts with your phone and uploading them to cloud storage is acceptable, provided the image is clear and complete.
What happens if you can't produce records?
If IRD asks for records you can't provide, they may:
- Disallow the expense or deduction you claimed
- Estimate your income based on other available information
- Impose penalties for failing to keep adequate records
Practical tips
- Upload receipts immediately — it takes seconds and prevents loss
- Don't rely on bank statements alone — they show the amount but not the business purpose; you need the actual receipt or invoice too
- Keep digital backups — store records in at least two places (e.g. Lodg and a personal cloud backup)
- Don't throw away old records too soon — a 7-year window is longer than it feels at the time
💡 Lodg stores all your uploaded receipts, invoices, and financial records securely online. You can access them at any time — and if IRD ever comes calling, everything is in one place.
Source: ird.govt.nz — Record keeping | ird.govt.nz — Records of income and expenses