General

Sole trader checklist Rārangi arowhai pakihi kiritahi

Use this checklist to make sure you’re covering all your tasks when you set up as a sole trader.
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Download the sole trader checklist

This is an easy-to-follow checklist you can use to tick off the essentials of being a sole trader. 

Sole trader checklist

Annual must dos

You must complete your own taxes. This includes keeping track of your income and business expenses so you can accurately calculate all taxes due. 

You must have a basic understanding of key tax types for sole traders and how much you must pay.

Paying your tax all at once

Each year you must complete your IR3 and file it on time - Inland Revenue (IR) has information on how to complete this.  

Tax 101 for sole traders 

Work out your yearly tax – Inland Revenue

Splitting up your tax payments

To help manage your cash flow around income tax obligations, check if it will be better to pay income tax in instalments during the year, rather than paying one lump sum.

You may be charged use-of-money interest (UOMI) on any underpayments of provisional tax (income tax), but tax pooling can help reduce this.

Complete your individual income tax return – Inland Revenue

Tax pooling – Inland Revenue

Tax during your first year

In your first year of being a sole trader you may be eligible for an early payment tax discount. For more information, visit IR’s website.

Discounted tax for your first year in business – Inland Revenue

A tax deduction is a claimable expense item that is related to your business income. You claim these expenses on your IR3 tax return each year.

Businesses are taxed on their taxable income, after deducting claimable business expenses.

Remember that to claim a business expense, you’ll need to keep good records and hold on to your receipts.

Claiming expenses

Types of business expenses – Inland Revenue

Expenses of a sole trader and record keeping – Inland Revenue

If you think you will earn more than $60,000 per financial year, you will need to file GST returns.

Once you’ve registered for GST, you’ll need to file regular GST returns and pay GST on your taxable activities. 

Learn more about GST

Filing and paying GST, and refunds – Inland Revenue

All self-employed or small business owners must pay an ACC work levy each year. ACC levies cover injuries that happen: 

  • at work
  • at home
  • on the sports field
  • when you’re out and about.

You’ll receive your ACC levy invoice by post or email once you have filed your tax return.

Learn more about your ACC levy invoice – ACC

Ways to pay your levy invoice – ACC

If you have a student loan and you earn over the annual threshold of $24,128, you must make repayments on your student loan.

Use IR’s student loan repayment calculator to estimate your loan repayment obligations and how long it will take. Student loan repayments are made through myIR. You can make a one-off payment or set up a direct debit.

Student loan repayments if you're self-employed – Inland Revenue

Student loan repayment calculator – Inland Revenue

Business paperwork is a standard part of any business practice. We’ve outlined the business paperwork you need to do to be compliant – and provided resources to help you both understand and keep on top of it. 

Business operations

When you’re in business, you’re required to keep accurate and complete records for at least seven years. This can include banking information, financial accounts, invoices and other contractual information. 

Record keeping obligations – Inland Revenue

Make sure you review any customer contracts regularly, so they are lawful and fair.

Tips for payments

For an overall guide to creating and sending an invoice, along with an invoice template, see our micro-course on what you need to prepare an invoice.

Preparing an invoice

Recommended tasks checklist

LAST REVIEWED: 14th July 2025

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Sole trader