How long to keep expense records

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In general you must retain all books, records and documents relevant to your business for a period of six years. Where a person waived exemption from Value-Added Tax VAT on the letting of property , all records in relation to those lettings must be retained for a period of six years following the cancellation of that waiver.

Where a person makes a claim under VAT legislation or makes an appeal to the Appeal Commissioner, records relevant to the matter in question must be retained for six years or until such later time as the matter at issue is finalised. Where a matter is under inquiry or investigation by Revenue, records in relation to the matter at issue must be retained for 6 years or until such later time as the matter at issue is finalised.

If you acquired or developed an interest in a property prior to 1 July , on which VAT was charged, you must retain records in respect of that property for a period of six years after you dispose of that interest.

You must obtain written permission from the relevant Revenue office to be permitted retention of documents for a shorter period.

Paper records must be stored within the State. Understanding how long should you keep business records will help you avoid these problems. The Internal Revenue Service has established some basic record-keeping rules for tax documents. Outside the tax arena, there's remarkably little guidance about how long you should keep business paperwork. Most lawyers, accountants and bookkeeping services recommend keeping original documents for at least seven years.

As a rule of thumb, seven years is sufficient time for defending tax audits, lawsuits and potential claims. These periods are not offered as final authority, but as a guide. Your CPA, outsourced accounting service or tax attorney may recommend a different approach based on the rules of your industry and the specific needs of your business. Keep records indefinitely if you file a fraudulent return.

Keep employment tax records for at least 4 years after the date that the tax becomes due or is paid, whichever is later. Are the records connected to property? What should I do with my records for nontax purposes?

About Publication , Business Expenses. About Publication , Farmer's Tax Guide. Page Last Reviewed or Updated: Aug If you are claiming the cost of a depreciating asset you have used for work, such as a laptop, you must keep records for five years following your final claim, including either:.

We may ask that you show us your records during the five years, it is important that you have sufficient evidence to support your claims. Records you keep don't have to be in paper form. We recognise records you store electronically as documents, this includes photos of your receipts. Sole traders with simple affairs can also use it to help keep track of their business income and expenses.

You can upload your records from the myDeductions tool and pre-fill your myTax return. If you use a registered tax agent, you can email your records directly to them. The myDeductions tool allows you to keep your records digitally in one place during the income year for:. In some circumstances you may not need receipts, but you will still need to be able to show you spent the money and how you work out your claim.

If you are unable to obtain a receipt from a supplier, you can still claim a deduction if we are satisfied that the nature and quality of the evidence shows you spent the money and are entitled to claim a deduction.

Evidence of your expenses can include a bank or credit card statement that shows the amount that was paid, when and who it was paid to as well as other documents that outline the nature of the goods or services provided.