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The dream holiday your influencer client got for “free” could come with an unwelcome tax bill from SARS.
If a hotel treated them to a luxury getaway in exchange for a few Instagram posts, the value of their stay could count as taxable income.
According to SARS's latest publication on the taxation of influencers and content creators, payments don't even have to reach a bank account to be taxable.
Read more: SARS publishes a tax guide for influencers and content creators
In this guide, we look at six common mistakes that can trip up influencer clients, from undeclared freebies to incorrect expense claims.
Where influencer tax returns can go wrong
For accountants, the challenge is determining what counts as taxable income, what these benefits are worth, and which expenses can legitimately be claimed.
Here are six common mistakes to watch for when managing influencer clients:
1. Declaring only the cash that reaches the bank
Under SARS's guide, influencers must declare the value of products, trips, and other benefits they receive in exchange for content, even when no money changes hands.
Let's say your client, Pieter, a Durban-based triathlon influencer, receives a wetsuit worth R6,000 in exchange for two Instagram videos.
He already has a wetsuit, so he sells the new one for R4,000 to help pay his rent. He declares the R4,000 but assumes the wetsuit itself was tax-free because he received it for free.
However, the wetsuit's R6,000 value must be included in his income. You also need to establish how the later sale should be treated for tax purposes, rather than simply adding another R4,000 to his taxable income.
The same principle applies to money earned but not yet received. If a brand agrees to pay Pieter R5,000 once it approves his videos, this amount becomes income when approval is given, even if he's only paid a month later.
You must also account for sponsorships, affiliate commissions, subscriptions, and foreign earnings. South African tax residents pay tax on their worldwide income, including payments from overseas platforms.
However, personal gifts are different. If Pieter's girlfriend buys him running shoes for his birthday, that's a personal gift. But if a sports brand gives him the same shoes in exchange for a promotional post, their value counts as income.
Always ask your client what they agreed to do in exchange for anything they received.
2. Accepting the brand’s valuation
When an influencer receives products, trips, or other benefits in exchange for work, you need to determine what they're actually worth. Don't simply accept the value the brand puts on them.
Let’s say a hotel group invites Pieter on a sponsored trip in exchange for four Instagram posts. It tells him the package is worth R60,000, which he passes on to you.
However, the booking confirmations show that his flights cost R9,500 and three nights' accommodation came to R13,500. This adds up to R23,000, which is far less than the advertised value.
If those were the normal prices for his flights and accommodation, R23,000 is the amount supported by the evidence. If the hotel also paid for meals or activities, you'd need to include their value too.
Always check invoices, booking confirmations, and comparable prices. Keep records showing how you calculated the value and what your client agreed to do in return.
3. Claiming personal spending as a business expense
SARS doesn't allow influencers to deduct personal expenses simply because they feature them in their content. To qualify, an expense must be directly linked to earning income and meet the normal tax deduction rules.
Let’s say Pieter is invited to Cape Town to film a sponsored training video. The brand requires him to shoot at a particular sports facility, so he books flights and one night's accommodation.
He then decides to stay another two nights for a holiday and asks you to claim the entire trip as a business expense.
His flights, the accommodation needed for filming, and the cost of hiring the sports facility could qualify as business expenses. However, the extra hotel nights, sightseeing, and other personal costs can't be claimed.
You need to check which expenses were necessary for the sponsored work and keep records to support the deductions.
4. Writing off equipment in one year
Buying equipment for content creation doesn't automatically mean your client can deduct the full cost in one year. Cameras, laptops, and other expensive equipment have to be written off over several years.
Let’s say Pieter buys a R25,000 camera to film his triathlon videos, and he asks you to deduct the full amount from his income that year.
However, the camera is a business asset that he'll use for several years. Instead of deducting the full purchase price, you can claim a wear-and-tear allowance over its useful life.
Some smaller items that cost less than R7,000 can be deducted in full in one year, provided they meet SARS's requirements.
Have a look at our guide to wear and tear to learn more about how to calculate these deductions and what happens when your client sells the equipment.
The same care applies to home-office claims. If Pieter edits his videos at the dining room table, he can't automatically claim part of his rent or electricity. SARS requires a space that's specifically equipped for work and used regularly and exclusively for that purpose.
5. Waiting for the annual return to think about tax
Influencers who earn business income are usually provisional taxpayers, even if they have another job where PAYE is deducted from their salary. This means they must submit provisional tax returns and make the required payments.
Provisional tax allows taxpayers to pay income tax throughout the year, based on their estimated taxable income, instead of facing one large bill when they submit their annual return.
Perhaps Pieter also has a full-time job as an engineer and earns extra money from his sponsorships as an influencer. Because his employer already deducts PAYE, he assumes his taxes are covered and doesn't tell you about his influencer earnings until the end of the tax year.
However, these earnings must also be included when calculating his provisional tax. This includes the value of sponsored products and payments he's entitled to but hasn't received yet.
Provisional taxpayers must submit two provisional tax returns each year, with payments due by the last business day of August and the last business day of February.
As Pieter's accountant, you should help him estimate his taxable income, account for PAYE already deducted, and update his estimates as new sponsorship deals come in.
You can also remind him to set money aside for tax, especially when he's paid in products rather than cash.
6. Overlooking VAT and turnover tax
From 1 April 2026, influencers must register for VAT if their taxable sales exceed R2.3m over 12 months. They can also register voluntarily once their taxable sales exceed R120,000, subject to SARS's requirements. These limits are based on sales, not profit.
For example, Pieter earns R2.4m from taxable sponsorships and content-creation services over 12 months, but spends R900,000 on equipment and other business expenses.
He assumes that deducting these costs puts him below the VAT threshold. However, SARS looks at his R2.4m in taxable sales, which means he must register for VAT.
Pieter also asks whether he can use turnover tax, a simpler tax system for qualifying small businesses. Unfortunately, his turnover exceeds the R2.3m limit for this option too.
As his accountant, you should monitor his sales throughout the year and check which taxes apply before he exceeds the relevant limits.
Keep the records that back up your client's tax return
Before submitting your client's tax returns, make sure you have records to support their income and expenses.
This includes sponsorship agreements, invoices, bank statements, platform earnings, and proof of the content they posted. Keep these records for at least five years, or longer if an audit or dispute is ongoing.
It's also worth keeping a separate record of sponsored products, trips, and other benefits, along with their values. This will make it easier to calculate your client's taxable income and explain the figures if SARS comes knocking.
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