# Form IR3B & IR10 NZ (2026–27): Sole Trader Business Income Schedule Guide

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- **Jurisdiction / Region:** NZ
- **Last Verified:** Mon Nov 02
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- **Summary:** How Form IR3B (Schedule of Business Income) and Form IR10 work for NZ sole traders in 2026–27: GST-exclusive vs inclusive boxes, expenses, and IR3 Box 24.

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# Form IR3B & IR10 NZ (2026–27): Sole Trader Business Income Schedule Guide

**Short answer: Form IR3B (Schedule of business income) and Form IR10 (Financial statements summary) are the two Inland Revenue schedules New Zealand sole traders use to summarise their business income and expenses when filing an annual IR3 individual income tax return in myIR. You do not need formal accounting statements to file: you complete either IR10 (standard statistical summary) or IR3B (itemised sole trader profit-and-loss schedule), and carry the resulting net profit figure directly into Box 24 of your IR3 return by 7 July.**

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When you file your annual [IR3 return](/keel/nz-ir3-explained/) in myIR for the tax year (1 April to 31 March), Inland Revenue asks how you want to report the breakdown behind your self-employed net profit. Under Inland Revenue's [Form IR3B](https://www.ird.govt.nz/income-tax/income-tax-for-businesses-and-organisations/Completing-a-return/schedule-of-business-income---ir3b) and [Form IR10](https://www.ird.govt.nz/income-tax/income-tax-for-businesses-and-organisations/Completing-a-return/financial-statements-summary---ir10) guidance, you must attach one of these schedules (or upload full financial accounts) so IRD can see how your gross turnover became your taxable net profit.

## What is the difference between Form IR3B and Form IR10?

Both forms feed your final net business profit into **Box 24** of the IR3 return, and Inland Revenue instructs sole traders to complete **one or the other—not both**.

| Feature | Form IR3B (*Schedule of business income*) | Form IR10 (*Financial statements summary*) |
|---|---|---|
| **Who it is built for** | Sole traders and self-employed contractors who do **not** prepare formal balance-sheet financial statements | Businesses, sole traders, or accountants who want a fast summary of income, expenses, and key balance-sheet items |
| **Balance sheet required?** | **No** — focuses on gross income, cost of goods sold, and itemised operating expenses | Includes simplified boxes for assets, liabilities, and capital additions/disposals |
| **Where you fill it in** | Directly inside the **myIR** online IR3 return wizard (or paper form IR3B) | Directly inside the **myIR** online IR3 return wizard (or paper form IR10) |
| **Do you still keep records?** | **Yes** — 7 years under IRD rules | **Yes** — completing IR10 speeds up processing, but does not replace underlying records |

For most solo tradies, couriers, and freelancers who track their own invoices, receipts, and vehicle kilometres without double-entry accounting software, **Form IR3B** (or the simplified expense breakdown in myIR) is the most direct path because it reads like a plain income-and-expense worksheet.

## Should you enter GST-inclusive or GST-exclusive figures on IR3B and IR10?

Your GST registration status dictates every box on Form IR3B and Form IR10:

- **If you ARE registered for GST** (compulsory above $60,000 turnover): Enter all income, purchases, and expense boxes **excluding 15% GST**, because you already account for GST separately on your [GST returns (GST101A)](/keel/nz-how-to-file-gst-return/).
- **If you are NOT registered for GST** (under the $60,000 threshold): Enter all income and expense boxes **including GST**, because the GST you pay on tools, materials, and fuel is part of your deductible business cost.

## Line-by-line guide to Form IR3B (Schedule of Business Income)

Here is how your daily job invoices, material dockets, and vehicle logs map onto the core sections of **Form IR3B**:

| IR3B Section / Box | What Goes in It | Practical NZ Tradie & Sole Trader Rule |
|---|---|---|
| **Box 1: Gross income (sales / fees)** | Total invoiced sales and contracting fees for the 1 April – 31 March tax year | Exclude any schedular payments already reported under the WT code unless adjusting expenses; use GST-exclusive figures if GST-registered |
| **Boxes 2–4: Opening stock, Purchases & Closing stock** | Cost of materials and goods bought for resale, less closing stock on hand at 31 March | If your closing stock on hand is **$10,000 or less**, IRD allows you to use your opening stock figure instead of doing a physical stocktake |
| **Box 5: Gross profit** | `Box 1 minus Cost of Goods Sold` | Your gross trading margin before operating overheads |
| **ACC levies** | ACC CoverPlus or CoverPlus Extra levies **paid** during the tax year | Deductible in the tax year you actually pay the ACC invoice ([see NZ ACC levies guide](/keel/nz-acc-levy-self-employed/)) |
| **Depreciation** | Total tax depreciation on assets over $1,000 plus **100% write-off for low-value assets $\le$ $1,000** | Uses IR265 rates (e.g., 67% tools, 50% laptops, 30% DV cars) plus 20% Investment Boost on eligible new assets ([see IRD depreciation rates](/keel/nz-depreciation-rates/)) |
| **Motor vehicle expenses** | Business vehicle claim using either IRD kilometre rates or actual business-use % | Requires a **90-day logbook** (valid for 3 years); Tier 1 rate is **$1.17/km** for the first 14,000 km ([see NZ mileage rates](/keel/nz-mileage-rates-vehicle-expenses/)) |
| **Use of home office** | Business floor-area % of power, rates, insurance, rent, or mortgage interest | Or use IRD's square-metre rate option ([see NZ home office expenses](/keel/nz-home-office-expenses/)) |
| **Repairs, maintenance, subbies & general expenses** | Protective clothing, trade insurance, phone/internet (50% or actual log), accounting fees | Keep taxable supply information / receipts for all purchases over **$200** ([see NZ self-employed expenses](/keel/nz-self-employed-expenses-receipts/)) |
| **Net profit / (loss)** | `Total income minus Total expenses` | Copy this final figure into **Box 24 (Self-employed net income)** on your Form IR3 |

## Worked example: Electrician completing Form IR3B for 2026–27

Suppose a GST-registered sole trader electrician in Christchurch earns **$112,000 (excl. GST)** between 1 April 2026 and 31 March 2027. Here is how their year-end job folders translate into **Form IR3B** and **IR3 Box 24**:

| IR3B Line Item | Amount (NZD, excl. GST) | Supporting Record Required (7-Year Retention) |
|---|---:|---|
| **Gross income (Sales & labour billed)** | **$112,000** | Sequential NZBN tax invoices (`INV-2026-001` to `INV-2026-094`) |
| Less: Materials & cable purchases (COGS) | −$24,500 | Wholesaler & Mitre 10 / Bunnings Trade dockets filed under jobs |
| **Gross profit** | **$87,500** | |
| Less: Motor vehicle expenses (9,200 business km @ $1.17/km) | −$10,764 | 90-day IRD vehicle logbook + start/end odometer readings |
| Less: Low-value tools ($\le$ $1,000 each) & IR265 depreciation | −$2,850 | Itemised tool receipts + asset schedule |
| Less: ACC earners' & work levy paid, public liability insurance, phone & home office | −$4,686 | ACC invoice, policy schedule & home floor-area calculation |
| **Net Profit (Transferred to IR3 Box 24)** | **$69,200** | Taxed at progressive NZ rates (10.5% / 17.5% / 30%); triggers provisional tax above $5,000 RIT |

## How do you keep IR3B and IR10 records sorted without bank feeds?

Under the *Tax Administration Act 1994*, Inland Revenue requires you to retain all records supporting your IR3B or IR10—invoices issued, supplier dockets, 90-day vehicle logbooks, and asset purchase receipts—for **at least 7 years** after the end of the tax year.

**Keel: Invoice Generator** is an iPhone app built for solo tradies and sole traders who want to issue NZBN invoices and quotes on site, scan fading thermal dockets from Bunnings or Mitre 10 with on-device OCR, and log business kilometres—with no bank connection. Every invoice and receipt stays organised by job on your device so filling in your IR3B or handing a clean pack to your accountant takes minutes. [Download Keel free on the App Store](https://apps.apple.com/app/apple-store/id6786659713?pt=127772795&ct=blog_vergi_nz-ir3b-and-ir10-sole-trader&mt=8&ppid=8470921a-830e-47a3-abf5-bf0b1cce24ac).

## Frequently asked questions

**What is Form IR3B in New Zealand?**

Form **IR3B** (*Schedule of business income*) is an Inland Revenue worksheet that sole traders use to calculate and itemise their gross business income, cost of goods sold, and deductible business expenses (such as motor vehicle costs, ACC levies, depreciation, and home office expenses) when they do not have formal financial statements prepared by an accountant. The resulting net profit transfers to **Box 24** of the individual **IR3** tax return.

**Do I fill in both IR3B and IR10 on my IR3 return?**

No. Inland Revenue requires you to complete **either** Form IR3B **or** Form IR10 (or attach formal financial accounts), never both. If an accountant prepares full financial statements with a balance sheet, they usually submit the **IR10** (*Financial statements summary*). If you prepare your own return in myIR from your invoice, expense, and mileage records, **IR3B** is designed for you.

**Where do I put low-value assets under $1,000 on Form IR3B?**

Assets costing **$1,000 or less** (GST-exclusive if GST-registered, GST-inclusive if not) that qualify for an immediate 100% write-off are included in the **Depreciation** box on Form IR3B (and in the tax depreciation box on Form IR10), rather than under general repairs or office supplies.

**Can I file my IR3B online in myIR?**

Yes. When you log into **myIR** to complete your annual **Income tax return (IR3)** and select **Self-employed income**, myIR lets you fill in the **Schedule of business income (IR3B)** or **Financial statements summary (IR10)** directly inside the browser wizard, automatically carrying the net profit total into your return.

**When is Form IR3B due?**

Form IR3B is submitted as part of your annual **IR3 return**, which is due by **7 July** following the end of the 31 March tax year (or by **31 March** of the following year if you are linked to a registered tax agent with an extension of time). Any terminal tax owed is due by **7 February** (or **7 April** with a tax agent).

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*This article is general information, not tax advice. Consult Inland Revenue (ird.govt.nz) or a qualified New Zealand tax professional.*